Futuris Corporation has foreshadowed a further earnings downgrade and a small profit loss this financial year in announcing a major restructure in which it well sell $350 million worth of assets and rebrand the company as Elders.
Futuris will make a headline loss of $9 million in 2008-09, with underlying profit after tax lowered to $60 million compared with the previously announced $85-$90 million.
Chief executive Malcolm Jackman said the falls were mainly due to lower car sales hitting Futuris Automotive earnings, and lower managed investment scheme sales and timber demand affecting ITC.
As part of the restructure, Mr Jackman said the company expected $204 million in writedowns - $138 million from businesses that would be sold, and $66 million from units that would be retained.
The writedowns would be offset by divestments, particularly from the sale of Futuris's stake in Australian Agricultural Company, he said.
The sale of non-core assets was expected to raise $350 million.
Mr Jackson said the writedowns and lower earnings would involve short-term pain, with the restructure aimed at generating long-term gains.
The company name change was designed to "capitalise fully on the potential, value and capabilities of Elders".
"We will concentrate on our core assets. we will manage the company as a whole, not in silos," he said.
"Our mindset and values will be that of an 'owner operator', not a 'holding company'."
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