LONDON (dpa-AFX) - Tate & Lyle Plc (TATYY.PK, TATE.L), a maker of ingredients and solutions for food and beverages, on Friday said it has delivered a solid performance during the fourth quarter in line with expectations, resulting in a 'good performance' for the year.
In its trading update for the year ending March 31, the company said it achieved good sales value growth in the Speciality Food Ingredients segment with higher volume across all major product categories. Profits, as said earlier, would be weighted towards the first half as a result of SPLENDA Sucralose volume growth reverting to more normal levels, while second half will be impacted by the costs associated with restarting McIntosh facility.
The company also announced that the production at SPLENDA Sucralose facility in McIntosh, Alabama has recently restarted ahead of schedule and that the first customer orders have started to be fulfilled from this facility.
In the Bulk Ingredients segment, Tate & Lyle experienced strong sweetener volumes with isoglucose margins improving in Europe during the second half on the back of higher sugar prices. The annual results were also benefited from firmer industrial starch margins in Europe, even though market conditions have started to soften recently against the backdrop of a more challenging macro-economic environment.
The company added that income from co-products has reverted to more normal levels during the second half following an exceptionally strong first half.
Tate & Lyle also noted that net debt as of March 31 will be somewhat higher than that at the end of last year reflecting higher working capital demands on the business following its decision to keep US corn silos full. This was in response to the anticipated tight supply situation running up to the next harvest.
The company is slated to release its full year results on May 31.
Tate & Lyle closed Thursday's regular trading session at 695 pence, down 9.50 pence or 1.35 percent.
Copyright RTT News/dpa-AFX
© 2012 AFX News
