Milling & Baking News - October 6, 2009 - 38

International 

Tate & Lyle sees positive first-half results
LONDON - First-half results were ahead of expectations
at Tate & Lyle, P.L.C., and demand from food and beverage
customers remains resilient in the Food & Industrial Ingredients, Americas division, the London-based company said
in a Sept. 25 trading update. Full results are expected to be
released on Nov. 6.
"Our half-year results will not reach the level of the corresponding period, which benefited from strong co-product revenues during the commodity price peak of summer
2008," said Iain Ferguson, chief executive officer. "As expected, demand from food and beverage customers has proved
resilient and we have continued to experience challenging
conditions in E.U. sugar and industrial ingredients. Against
this backdrop, we have continued to take the actions necessary to strengthen the group's balance sheet, reduce our costs
and ensure that we are well positioned as markets improve."
Within the Food & Industrial Ingredients, Americas division, the company said profits are expected to be below
the level of the comparative period due to lower co-product

income and lower profits from industrial ingredients. In
addition, the underlying contribution from ethanol for the
first half is expected to be below that of the previous period
because of lower unit margins.
Tate & Lyle said its sugar business has continued to perform marginally ahead of expectations, but noted that the
company's E.U. sugar refining business has continued to
experience difficult market conditions.
The company's sucralose business, meanwhile, has
achieved double-digit volume and single-digit revenue
growth over the comparative period, reflecting demand
and customer restocking.
"As our customer incentive plans generate volume, average
selling prices will trend lower," the company said. "The mothballing of the McIntosh, Ala., plant is proceeding ahead of
schedule, accelerating the benefits from lower cost production
and we have achieved operating margins somewhat above
our expectations. The Alabama plant is now being maintained
in a state whereby it can be restarted within a few months." MBN

Danisco raises EBIT estimate after strong first quarter
COPENHAGEN, DENMARK - Danisco posted revenue
growth of 7% and EBIT growth of 27% for the first quarter ended July 31, which prompted the company to raise
its guidance for the fiscal year. Group EBIT came in at

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38 / October 6, 2009 Milling & Baking News

DKK524 million ($104 million), or DKK6.42 per share,
up from DKK412 million ($82 million), or DKK5.60 per
share, in the previous year's first quarter. Enablers and
Genencor both contributed to the higher margins, according to Danisco.
First-quarter revenue of DKK3,449 million ($683 million)
compared to DKK3,235 million ($641 million) in the previous
year's first quarter. Revenue grew 2% organically, 2% through
acquisitions and 3% through positive currency movements.
Danisco raised its EBIT estimate for the year to slightly
under DKK1,400 million, up from about DKK1,300 million.
Profit for the Group is estimated at slightly above DKK700
million, up from about DKK650 million. Revenue outlook
for the year remains unchanged at DKK13,500 million.
"We are encouraged by the positive start to the year, not least
in view of the still challenging and volatile market environment,"
said Tom Knutzen, chief executive officer of the Copenhagenbased company, when first-quarter results were announced
Sept. 17. "Internal cost containment and positive momentum for
several of our products are starting to bear fruit, and we are satisfied that we are able to lift our outlook for the full year."
In Enablers, which encompasses emulsifiers, gums
and systems activities, in the first quarter revenue was
DKK1,447 million, up from DKK1,390 million, and EBIT
was DKK257 million, up from DKK192 million. On Nov. 1,
the Emulsifiers and Gums & Systems divisions will merge
into one Enablers organization.
In Cultures in the first quarter, revenue was DKK537 million, up from DKK476 million with almost all the growth
being organic. First-quarter EBIT was DKK107 million, up
from DKK98 million.
In Sweeteners in the first quarter, revenue fell to DKK376
million from DKK408 million and EBIT dropped to DKK9
million from DKK46 million. Weakness in xylitol drove the
declines even though Litesse polydextrose continued its
strong performance.
In Genencor in the first quarter, revenue rose to DKK1,104
million from DKK966 million and EBIT increased to
DKK190 million from DKK112 million. Enzyme sales into
the bioethanol industry continued to rise at double-digit
organic growth rates across all major geographies. MBN
bakingbusiness.com / world-grain.com

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Milling & Baking News - October 6, 2009

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