Tate & Lyle sees progress, cautious over US

22nd Jul 2010 07:01

Tate & Lyle said it has made a sound start to the year and continues to anticipate progress in the current full year.However, despite some improvement in demand, industrial starch margins are expected to remain at lower levels and the group continues to see little near term improvement in US ethanol markets.In its Speciality Food Ingredients division, demand patterns for speciality sweeteners and starches have remained steady from 1 April to 30 June and the group has continued to experience solid growth in sucralose sales volumes.Within Bulk Ingredients, corn sweetener volumes were somewhat above the prior year period, reflecting firm demand for HFCS in Mexico and the benefit of increased European capacity following completion of the expansion in Slovakia. Industrial starch performance in both the Americas and Europe was marginally lower, with weaker margins partially offset by higher volumes. Ethanol margins improved slightly, although markets have remained depressed.During the first quarter, Tate & Lyle expect a continuation of the steady demand patterns experienced in Speciality Food Ingredients.In Bulk Ingredients, it anticipates the firm demand for corn sweeteners into Mexico to continue alongside the modest decline in US domestic demand, and stable demand in its other food markets. Earlier this month, Tate & Lyle sold the largest part of its sugars division to American Sugar Refining of the US for £211m - a deal that will see it lose some of its well known brands.