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.
- Tough going for Tate and Lyle, FWi, 12 May, 1999
- Financial Times 09/03/2000 page 30
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