Dive Brief:
- Ingredients maker Tate & Lyle warned that its profit would be lower than forecast earlier — the third warning this calendar year. Shares plummeted some 18% to an all-time low.
- The U.K.-based company put much of the blame on the continuing fallout from the severe winter in the United States. Tate & Lyle experienced major supply-chain disruptions in the Corn Belt from winter storms. The company said it will spend a total of around $75 million to improve supply chain operations.
- The company, which is best known for its Splenda brand of sweeteners, said revenue was also hurt by falling prices for sucralose.
Dive Insight:
Tate & Lyle is about as vulnerable as a company can be right now, following profit warnings in February and May. As we noted earlier, there's considerable speculation that other ingredients giants like Bunge or Cargill are likely to try to acquire the company soon. With share prices now at their lowest point ever, it would seem that such a move may be imminent.