NEW YORK (Bloomberg) - Bermuda-based MF Global Ltd., the derivatives broker whose chief executive officer resigned last week, said profit in the fiscal second quarter fell 64 percent because of severance payments and a decline in futures volume in August.

Net income excluding some costs for the three months ended September 30 was $19.4 million, or 14 cents a share, compared with $53.7 million, or 42 cents, a year earlier, the company said yesterday in a statement. The broker forecast adjusted net income of between $18 million and $20 million on October 29, missing analysts' estimates.

Chief executive officer Bernard Dan took over MF Global a week ago from Kevin Davis, who was with the company for 17 years, after an almost 90 percent plunge in share value this year. Mr. Dan said he was focused on internal improvements in the company to restore investors' confidence.

"We're taking a hard look at the organisation," Mr. Dan said on a conference call with investors and analysts after earnings were released. "Our focus is on transparency and improved communication."

The company's market value plummeted $3 billion after a $141 million trading loss in February, earnings that fell short of expectations and confusion over how much outside capital it needed to raise. Mr. Davis's leadership was questioned by analysts including Kenneth Worthington at JPMorgan Chase & Co. in the aftermath of the losses. Mr. Dan did not discuss Mr. Davis yesterday, though he stressed that the company would be more forthcoming.

"If we have material information, we will make every effort to disclose it in a timely fashion," Mr. Dan said. "Shareholders will benefit from our efforts to improve the company."

Net income for the quarter ended September 30 was $9.7 million, or three cents a share, the company said. That compares with its October 29 estimate of $8 million to $10 million. The company reported a net loss of $90.6 million a year earlier on costs related to its initial public offering and a lawsuit.

MF Global, formerly the brokerage unit of Man Group plc., the world's largest publicly traded hedge-fund manager, fell 15 cents, or 3.7 percent, to $3.90 as of 9.53am in New York Stock Exchange composite trading. The shares have dropped 88 percent this year.

Net revenue, which excludes interest and transaction-based expenses, fell 14 percent to $372.9 million from $435.5 million a year earlier. The company forecast net revenue of $365 million to $375 million. MF Global, which has its operational headquarters in New York, earns fees by executing trades and clearing transactions to ensure the delivery of commodities, equities or cash to its customers.

Mr. Dan said he was looking at every business unit and intends to allocate capital only to those that return the most. He also said he expected consolidation among derivatives brokers to pick up in coming quarters.

The focus is "to take advantage of further acquisitions opportunities", he said.

MF Global rebuffed a partnership offer last week made by Interactive Brokers Group Inc. Interactive Brokers offered to take over trading and processing duties for the broker in exchange for access to MF Global's sales force.