Tate & Lyle profits fall 11%

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The sugar and sweetener company said that the drop in profits could be attributed to numerous factors such as a weak dollar which cost it around £11 million.

The company also said that its international sugar trading business had made an operating loss of £9 million, whereas the previous year saw a profit of £22 million.

The rising price of corn has also had an effect on the company, although it has largely nullified this by raising its prices.

Sir David Lees, chairman of Tate & Lyle, said, "2008 was a year of significant change and progress for Tate & Lyle. We successfully achieved a number of steps to reshape our business in line with our strategy to build a stronger value added business on a low-cost commodity base. This reshaping process is largely complete and, taken together with some important changes in the management structure, the Group is now well-positioned to benefit from the growth opportunities in our chosen markets."

Iain Ferguson, chief executive, said, "The Group's profit from continuing operations was adversely affected by a very disappointing performance in international sugar trading and by the weak US dollar. In international sugar trading, we have taken the necessary actions to restructure its activities and re-focus management priorities to ensure that this year's result is not repeated.

He continued, "We expected 2008 to be a year of transition and that proved to be the case. With our strategic reshaping largely complete, our priority is clear to deliver our longer term target of a return on net operating assets of 20%. With all that we have achieved this year, and with the new management structure in place, we now have the platform from which that longer term target can be delivered and we are committed to that goal."