| LONDON, Nov 9 (Reuters) - The world's largest sugar company
Tate & Lyle Plc reported a sharp fall in first half profits on
Thursday and said it had agreed to sell its loss-making Western Sugar as
part of a review of its U.S. sugar operations.
The group warned trading conditions have not improved since its
annualmeeting in late July and there had been a further deterioration in
U.S. sugar markets. It said that it was difficult to see a second half
improvement in group results.
As a results it has signed a conditional deal to sell its beet
processor Western Sugar to the Rocky Mountain Sugar Growers Co-operative,
while it continues to explore options for its cane sugar refiner Domino,
although a speedy resolution has been delayed by the worsening conditions
in the U.S. sugar market.
``Trading conditions have not improved since the annual general meeting
and in U.S. sugar there has been a further deterioration in recent
weeks,'' said group chairman David Lees in a results statement.
``If current conditions persist, it will be difficult in the second
half of this financial year to improve on the results for the first
half,'' he added.
The sugar and sweeteners group reported a 46 percent fall in pre-tax
profits for the 27 weeks to September 30 to 68 million pounds ($96.83
million) before exceptional items and goodwill amortisation compared to
127 million pound previously. It announced an unchanged interim dividend
of 5.5 pence a share.
After a series of profit warnings, Tate announced a review of its
loss-making U.S. sugar operations earlier this year, which many investors
had hoped would lead to a speedy sale of both its troublesome Western and
Domino U.S. sugar operations.
Tate said unprecedently poor market conditions had resulted in
continued losses at its U.S. sugar units and competitive markets at its
U.S. sweeteners and starch operations Staley and European starch unit
Amylum had also depressed profitability.
The group also warned that it had seen a 12 million pound increase in
energy costs compared to its previously first half, and expects energy
cost for the full year to be 30 million pounds higher than the previous
year. |