February 24, 2009
AB Foods sees lower half year profit
Associated British Foods PLC (AB Foods) said Monday (Feb 23) its half profit will fall from last year's due to the decline in certain business units.
Margins were squeezed at AB Foods' ACH Food Companies unit in North America, whose brands include Mazola corn oil and Karo corn syrup.
The half-year results will include a write down of GBP60 million (US$87.1 million), reflecting the closure of the loss-making milk protein factory in Nebraska and the closing of ACH's oil processing plants due to its Stratas Foods packaged oils joint venture with North America's Archer Daniels Midland Co. (ADM).
AB Foods shares fell 0.6 percent to 641 pence on the London Stock Exchange.
