Shares in Swiss auto parts and textile group Rieter tumbled on Tuesday after it announced the departure of CEO Hartmut Reuter and said first-half sales had slumped due to the economic downturn.
The group, which also gave a gloomy outlook, said it would post a drop of about 50 percent in first-half sales and a net loss of 150 million Swiss francs ($141.4 million). Rieter will post final half-year figures on Aug. 12.
"The Board of Directors expects the market environment to remain difficult for the next two years. The extensive restructuring measures initiated in 2008 call for further vigorous efforts," Rieter said in a statement.
By 13:54 CET, shares in the group had fallen 2.9 percent to 199.00 Swiss francs.
"Rieter is heading toward a scenario, described as 'worst case' at the 2008 press conference" held in late March 2009, Kepler Capital Markets analyst Fabian Baumann said in a note.