Tate & Lyle profits not very sweet

By DAILY MAIL REPORTER
Updated: 20:53 EST, 2 April 2009

Sugar-free: Tate & Lyle has released another profits warning

Golden Syrup maker Tate & Lyle yesterday issued its fourth profit warning in 18 months.

This time the sugar refiner blamed weak demand for its sweeteners and starches for the dent to earnings. 

Yet the shares ticked up 17¼p or 7 per cent to 276½p - largely due to news the debt pile had been cut by £300million to less that £1.25billion and its renewed commitment to paying the divi. 

Tate & Lyle also has undrawn bank facilities of £526million and cash resources were more than £350million.

But the firm has suffered from poor performance at Tate's North American ingredients business.

This supplies sweeteners, starches and ethanol and accounts for around two thirds of group profits.

But demand from drinks makers has slowed as the world's economies suffer.

A lower oil price has also caused a slump in demand and profit for ethanol, a key biofuel.