Futuris Chief Executive Les Wozniczka said that the key factors inthe movement in

    underlying profit to shareholders compared with the previous yearwere a $16.9 million

    increase in interest expense, a $9.3 million reduction in profitafter tax contributed by AAco

    and the absence of the $21.5 million contribution made to the 2007result by the divested

    property operations.

    "Although higher interest and lower income from AACo impacted ouroverall result, the year

    featured strong performances from our Elders Rural Services, EldersRural Bank and

    Automotive operations.

    "Elders Rural Services recorded the greatest improvement, achievingits best ever result in

    lifting underlying EBIT from $49.1 million to $60.7 million.

    "Elders' strong result was driven by its core traditional networkoperations. The Elders

    network and its associated joint ventures had an outstanding year,lifting its EBIT by 43%,

    after a lower, drought affected first half.

    "With strong grain markets our agency operations have performedwell, with particularly good

    results from the sale of merchandise, chemicals, our initiatives ingrain and the HiFert

    fertiliser business."

    This momentum was also reflected in higher distribution fee incomefrom financial services

    and real estate activities.

    "Elders has responded to the new management and initiativesintroduced during the year

    and we know Elders has the capacity to deliver further gains as itprogresses through the

    change program now well underway" he said.

    Changes made to date within Elders Rural Services include the movefrom a state office

    based structure to a more focussed regionally based managementstructure, the scaling

    back of greasy wool trading to indent trading and the decision toexit fruit packing operations.

    The growth in earnings generation by the Elders network was offsetby lower income from its

    Agribusiness interests as livestock and wool processing operationswere affected by lower

    volumes brought by tough drought conditions during calendar 2007.

    "Earnings contribution from Elders Financial Services was in linewith our expectations with

    excellent banking results offsetting softer insurance markets andthe return of claims ratios to

    customary levels.

    "Elders Rural Bank showed the soundness of its business despite theyear's volatile financial

    markets. The Bank's profit after tax rose by 14 % and creditquality improved as net non-

    performing loans fell to 0.33% from 0.36% the previous year. Retaildeposits continued to

    grow, which is impressive given the challenges in global creditmarkets." Mr Wozniczka said.

    Underlying EBIT generated by ITC of $61.3 million was broadly inline with the 2007 result of

    $61.6 million despite significantly lower MIS sales. ITC was ableto largely overcome the

    impact of the reduction in MIS sales through earnings incrementsgenerated across the

    balance of its operations including higher woodchip prices, growthin harvest and accrued

    income, increases to the value of plantation land holdings andimproved results from timber

    processing.

    ITC's 2008 financial results include estimates of its equityaccounted earnings from Forest

    Enterprises Australia (FEA) of $11.2 million ($11.0 million in2007). Subsequent to the

    closing of Futuris' 2008 accounts FEA announced unaudited financialresults which suggest

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