Europe Market Movers: Tate & Lyle, Alcatel-Lucent, TUI
TATE & LYLE was down £1.20 to £4.38... Warns on profit, brokers indicate cuts - the company says that its sugars business is now forecasting a small loss for first half vs a profit of £15 million year ago. Also expects translation impact of weakness of US$ to reduce pretax profit for first half and estimates this impact to be about £12 million over the comparable period. The company says the significantly higher corn costs in Europe will have an increasingly severe effect on the profitability. Views the near term outlook with caution. Following the update, Panmure lowers to hold from buy on the assumption of rampant US corn oil prices leading to windfall gains this year. Keeps price target under review. Citigroup sees material downward risk to market estimates (both operational and financial) in fiscal 2008 and fiscal 2009. Merrill Lynch says that the sugar business is weaker than expected, weaker HFCS market, tax rate is higher than expected. Adds that significant downgrades are to come.
To continue reading this article you must be a Bloomberg Professional Service Subscriber.
If you believe that you may have received this message in error please let us know.