Futuris chief executive Les Wozniczka has resigned this morning following a plunge in the company's share price, which yesterday fell to their lowest level in more than 10 years, due to a forecast of a profit downgrade of 15-20pc.
Chairman Stephen Gerlach said a "fresh set of eyes" were needed to drive change within the company.
The shares fell 36.5c yesterday, or more than 27pc, to 97c. They are down almost 55pc this year.
Futuris said it would sell non-core or non-performing assets to cope with a lower profit this financial year of $80 million to $85 million, against $100 million foreshadowed in May. This, in turn, is likely to hit profits in 2008-09.
The company blamed the downgrade on lower forestry managed investment scheme (MIS) sales, likely negative earnings from the beef producer Australian Agricultural Company, and higher interest costs.
Shares in other companies in the MIS sector were also hit. Great Southern Plantations and Timbercorp closed at 12-month lows, with Great Southern down 8.5c at 69.5c and Timbercorp falling 4c to 75c. Forest Enterprises Australia, 30pc owned by Futuris's forestry arm, ITC, fell 5c to 41.5c.
Futuris's chairman, Stephen Gerlach, said that the revised earnings guidance represented underlying earnings per share of 10.6c to 11.2c, but was not expected to affect the 2008 dividend.
Earnings before interest and tax in 2007-08 are expected to meet market expectations of $166 million to $182 million.
Earnings from Elders Financial Services and Futuris Automotive are in line with expectations.
The chief executive, Lez Woznicka, said demand for MIS products, with only days to the end of the financial year, had been much weaker than last year.
This would produce a 2008-09 profit of $85 million to $95 million. Earnings before interest and tax next year would fall within the lower range of market expectations of $178 million to $191 million.
Analysts blame the lower MIS sales on depressed equity markets, arguing that lower capital gains mean there is less money available for the investments.
Mr Woznicka said Futuris would make a loss from AAco, whose 2007 calendar profit fell by 64pc to $3.65 million due to the drought and the high value of the Australian dollar.
Futuris failed to sell its 43pc stake in AAco last month, but Mr Woznicka indicated the stake was still on the table.
Despite higher interest costs, Mr Woznicka said Futuris had no big refinancing requirements and had no intention of issuing equity to reduce debt.
He flagged asset sales without being specific, but indicated the automotive and telecommunications arms were potential candidates.
"The company's structure can be expected to become simpler," he said.
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