Tate & Lyles profit hopes dissolve


9 March 2000



Tate & Lyles profit hopes dissolve


TATE & Lyles hopes of a sustained profit recovery have been dashed by price weakness in the sugar sector.

Analysts have been reducing forecasts for the year, and on Wednesday shares slipped 10% as a leading analyst published a sell note.

The Financial Times comments that as an agribusiness, exposed to unpredictable crops, weather and government and trade regulations, Tate & Lyle cannot control many variables shaping its fortunes.

Good beet and cane crops in the US have pushed prices down, and this could be worsened by a possible 10-fold expansion of exports from Mexico under the North American Free Trade Agreement.

See more