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New profit warning by Tate & Lyle
2 Apr 2009Sugar giant Tate & Lyle admitted today it has been unable to kick the habit of disappointing investors.
For the second time in nine weeks it lowered profit estimates as the company told shareholders not to expect the company to match last year's profits of £253 million.
The latest profit alert follows a string of warnings over the last two years which have heaped pressure on the company and its chief executive Iain Ferguson.
The company is blaming falling demand for Tate's sweeteners from the fizzy drinks giants of Coca-Cola and PepsiCo, as well as falling demand from the paper and packaging industries which use Tate's industrial starches.
Tate says its results will be "marginally below" its guidance in January which had warned of being at the lower end of market expectations. Last November, Ferguson told the City Tate was ahead of expectations.
