By Steve Goldstein
Sometimes no news is bad news.
Tate & Lyle, alongside the release of its earnings, didn’t announce a conclusion to the fate of the artificial sweetener-making primary products division it put up for sale last month. Tate & Lyle /zigman2/quotes/205109332/delayed UK:TATE +0.53% shares fell 5%.
“We are exploring the potential to separate our Food & Beverage Solutions and Primary Products businesses through the sale of a controlling stake in Primary Products to a long-term financial partner,” the company said, largely reiterating a comment made in late April. It said discussions with potential new partners were ongoing and it has already paid £19 million ($27 million) for work on the potential breakup.
The company reported a 12% rise in adjusted earnings per share in the year ending March 31, with revenue edging up 1%, while it expects current-year earnings per share to fall, due to significantly lower profits in its commodities division and a rising adjusted effective tax rate.
The pound /zigman2/quotes/210561263/realtime/sampled GBPUSD +0.5339% rose after bullish comments from Bank of England voting member Gertjan Vlieghe, who said a rate rise could be appropriate soon after the first quarter of next year, when the central bank would have a clear view of the post-furlough unemployment and wage dynamics.
The FTSE 100 /zigman2/quotes/210598409/delayed UK:UKX +0.37% slipped 0.2%, weighed down by energy producers Royal Dutch Shell /zigman2/quotes/204253697/delayed UK:RDSB +1.93% and BP /zigman2/quotes/202286639/delayed UK:BP +1.65% .
Johnson Matthey /zigman2/quotes/207054035/delayed UK:JMAT -0.94% fell 4%, as the catalytic-converter maker reported in-line results for the year ending March and said operating performance would improve this year.
Engine maker Rolls-Royce /zigman2/quotes/203646520/delayed UK:RR +0.78% saw a 5% jump, after plane maker Airbus /zigman2/quotes/208224336/delayed FR:AIR +1.36% announced it was increasing jet production.