Tate & Lyle PLC
Trading Update for the Year Ending 31 March 2007
Overall trading for the nine months to 31 December 2006 has continued to
comfortably exceed the corresponding period of the prior year, with a strong
performance from both commodity and core value added products. However, it is
likely that sales and profits of SPLENDA(R) Sucralose for the year to 31 March
2007 will only modestly exceed the prior year due to a slower than anticipated
acceleration of uptake from major customers.
SPLENDA(R) Sucralose has seen good demand from the food and still beverage
sectors and international expansion is well underway, now that additional
manufacturing capacity is available. We have an extensive product development
pipeline with our customers across several markets, although the process of
reformulation is taking longer than expected. Volumes to the US carbonated soft
drink sector have not met our expectations this year and additional resources
have been deployed to address this.
As previously stated, Food & Industrial Ingredients, Americas continues to
perform strongly. Food & Industrial Ingredients, Europe achieved a satisfactory
pricing round for the 2007 calendar year and results for the second half-year
are now expected to be similar to the corresponding period of the prior year,
albeit after benefiting from a lower depreciation charge. Sugars, Europe will be
negatively impacted by the over supply of sugar in the market, a result of the
slow surrender of quota to date. Sugars, Americas and Asia continues to trade in
line with our expectations.
The lower than expected contribution from SPLENDA(R) Sucralose means that in the
year to 31 March 2007 the growth of value added profits will be significantly
below the Group's target of 30%. Given this and the impact on overseas earnings
of the weakness in the US dollar, Group profit before tax, exceptional items and
amortisation for the year to 31 March 2007 is now likely to be modestly below
current market expectations, albeit well ahead of the previous year.
A conference call for analysts and investors will be held at 7.45 am today. The
call will be hosted by Iain Ferguson, Chief Executive, John Nicholas, Group
Finance Director and Mark Robinson, Director of Investor Relations. Participants
are requested to dial in at least 5 minutes before the commencement of the call.
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Dial in details are:
Participant dial in number: +44(0)20 7138 0817
Replay telephone number: +44(0)20 7806 1970
Replay passcode: 450 7789#
The replay of this call will be available for 7 days until 30 January 2007. END
CONTACTS
Mark Robinson, Director of Investor Relations
Tel: 020 7626 6525 or Mobile: 07793 515861
Ferne Hudson, Head of Media and Public Relations
Tel: 020 7626 6525
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About Tate & Lyle: Tate & Lyle is a world leading manufacturer of renewable food
and industrial ingredients. It uses innovative technology to transform corn,
wheat and sugar into value-added ingredients for customers in the food,
beverage, pharmaceutical, cosmetic, paper, packaging and building industries.
The Company is a leader in cereal sweeteners and starches, sugar refining, value
added food and industrial ingredients, and citric acid. Tate & Lyle is the world
number-one in industrial starches and is the sole manufacturer of SPLENDA(R)
Sucralose.
Headquartered in London, Tate & Lyle is listed on the London Stock Exchange
under the symbol TATE.L. In the US its ADRs trade under TATYY. The Company
operates more than 65 production facilities in 29 countries, throughout Europe,
the Americas and South East Asia. It employs 7,000 people in its subsidiaries
with a further 4,800 employed in joint ventures. Sales in the year to 31 March
2006 totalled £3.7 billion. Additional information can be found on this website
www.tateandlyle.com.
SPLENDA(R) and the SPLENDA(R) logo are trademarks of McNeil Nutritionals, LLC
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