Cadbury Schweppes has announced a profit warning, blaming the effect of oil price hikes and disruption caused by the hurricanes that hit the US.

The warning flies in the face of the company’s repeated cost-cutting measures and previous statements that it was “on track”.

“Despite intensifying cost pressures and significant growth-related investment, we expect a further improvement in margin in 2005,” said chief executive Todd Stitzer in a trading statement, “although we are unlikely to make sufficient progress to be within our margin goal range this year.”