US winter chills Tate & Lyle forecast
Food ingredients firm Tate & Lyle has warned that profits will be lower than forecast due to a "very challenging" six months.
It said a severe US winter and intense price competition for its sweetener Splenda would lead to lower-than-expected first half profit of between £95m and £105m, and full-year profit of between £230m and £245m.
These ranges are around 20% below the level analysts were expecting for the group, which sells ingredients to packaged food and drinks makers. Shares fell more than 16%.
Chief executive Javed Ahmed launched an immediate review into the firm's planning and supply chain procedures after bad weather meant it went into its new financial year with less stock than usual.
The group said disruption to its global supply chain in the first quarter persisted longer than anticipated.