Tate & Lyle profit warning sees shares plummet 20%

UK sugar manufacturer Tate & Lyle saw its shares fall by nearly 20% at one stage this morning after it warned profits will sharply undershoot estimates.

The firm said it had experienced significant supply chain issues in the first half of 2014 and increased competition for its sweetener products in the second quarter. As a result, it said it had incurred additional costs of £20m which means pre-tax profit for the full year is expected to be between £230-£245m. The revised profits forecast is more than 20% below the current market consensus. Shares in the company fell as much as 18% in reaction, hitting a low of 598p. By 10am they were trading down 16% at 616.5p. It is the second such warning from the group, which said in February t...