Shares in Tate & Lyle shares fell to their lowest since August after it warned that profits for the current financial year would miss forecasts and tempered expectations for 2010-11 too.

The sugar-and-starch group said that its performance in the last three months of 2009 had been "marginally below our expectations" thanks to a decline in industrial sales by its Food & Industrial Ingredients, Americas division.

For Tate's full financial year, which ends in March, operating profits would be "marginally below" the £298m achieved a year before.

Analysts had expected a small rise to £299m, according to Tate's own calculations of consensus forecasts.

Sweetener market turns sour 

The group also flagged a dent to its 2010-11 results from tougher markets for its industrial ingredients divisions on both sides of the Atlantic.

"The 2010 calendar year pricing rounds… have been conducted against the backdrop of the lower demand we have seen following the economic downturn," Tate said.

Many analysts had warned of the threat posed by a switch by drinks manufacturers from high fructose corn syrup - a sweetener which is one of Tate's main products from corn refining - back to sugar, amid growing consumer concerns over health issues.

Tate said its Americas division would suffer a decline in sweetener sales prices, with profit margins falling too despite a drop in corn costs.

Shares slide 

Shares in the group tumbled 4.5% to 388.7p in London, their lowest for five months.

Investec cut its price target on the stock to 475p from 520p, while maintaining a "buy" rating.

Icap, while noting Tate's "slightly light" trading performance, said that share price weakness offered a "good buying opportunity".