Callaway interim CEO seeks to regain market share

By Associated PressJune 30, 2011, 8:57 pm

NEW YORK – Callaway Golf’s new interim president and CEO, Anthony Thornley, said Thursday that the golf equipment maker will put some savings from planned job cuts toward boosting marketing spending and gaining back market share.

Callaway Golf Co. has suffered losses as the golfing industry has been slow to rebound after the recession. Late Wednesday, the Carlsbad, Calif.-based company announced layoffs in an effort to cut pretax costs by $50 million, said CEO George Fellows would step down and issued a weak forecast for the second quarter. It said it must take “immediate and aggressive actions” to return to profitability.

In a conference call with analysts on Thursday, Chairman Ron Beard said Fellows, 68, resigned after six years at the helm for personal reasons, partly including the cross country commute to his family’s home in New York. The board felt Thornley, who has sat on Callaway’s board since 2004, was a “natural choice” to lead the business until the company can conduct a search for a permanent CEO.

“It is the board’s view that the company’s performance is not at all what we want it to be and Tony’s charge is to lead the next steps in the efforts to improve the results that we deliver to shareholders,” Beard said. Describing the 65-year-old Thornley as an “avid golfer” with a handicap in the low single-digits, Beard said the board believes that he has a “passion for our sport and for this company and that he has the skills and discipline that Callaway needs as it takes its next steps forward.”

Thornley, a former president and chief operating officer of wireless tech company Qualcomm Inc., noted that Callaway’s rivals have been investing considerable sums on media advertising and tour expenses and that’s hurt Callaway’s business. He said the company will look to boost marketing spending to better attract customers.

“While it is clear that it was the global economic recession that derailed our record sales and earnings pace, it is also clear that our business is not keeping pace with the industry recovery,” said Thornley. “While we have the best performing products in the industry, that message has sometimes been overshadowed by the sheer volume of competitive marketing. In addition, the actions we are announcing today will also result in a leaner organization that is better able to respond to changing market conditions.”

Thornley said job cuts will take place at all levels of the organization. The projected cost savings will reduce operating costs and allow the company to redeploy some funds toward its core business. The number of jobs to be eliminated wasn’t disclosed. The company expects to give more details on the reorganization when it reports quarterly results in late July.

Callaway forecast a loss of $55 million for the second quarter, including a $46 million charge related to deferred tax assets and an $8 million charge on the job cuts, and revenue of $270 million. That’s well below the $307.1 million in revenue expected by analysts, according to FactSet.

KeyBank Capital Markets analyst Lisa Brozewicz called the forecast “disappointing,” but believes the management change is positive for Callaway.

“The interim CEO appears to be taking necessary actions to return the organization to profitability,” she wrote in a note to clients.

Callaway shares fell near its 52-week low of $5.80 during Thursday’s regular session, before paring some losses and closing down 11 cents at $6.22.

Cabreras take 1-shot lead in Father/Son

By Associated PressDecember 16, 2017, 11:23 pm

ORLANDO, Fla. - Two-time major champion Angel Cabrera and Angel Cabrera Jr. birdied their last three holes for a 13-under 59 to take a one-shot lead Saturday in the PNC Father-Son Challenge.

Cabrera, a Masters and U.S. Open champion, is making his debut in this popular 36-hole scramble. His son said he practiced hard for 10 days. What helped put him at ease was watching his father make so many putts.

''We combined very well,'' Cabrera said. ''When I hit a bad shot, he hit a good one. That's the key.''

They had a one-shot lead over Mark O'Meara and Shaun O'Meara, who are playing for the first time. That included a birdie on the last hole, which O'Meara attributed to the strength of his son.

''My little man hit it 58 yards by me on the 18th,'' said O'Meara, the Masters and British Open champion in 1998. ''It's a little easier coming in with a 6-iron.''

Defending champions David Duval and Nick Karavites rallied over the back nine at the Ritz-Carlton Golf Club for a 61. They are trying to become the first father-son team to repeat as winners since Bernhard and Stefan Langer in 2006. Larry Nelson won two years in a row in 2007 and 2008, but with different sons.

''I'd imagine we have to break 60 tomorrow to have a chance to win, but hey, stranger things have happened,'' Duval said. ''I've even done it myself.''

Duval shot 59 at the Bob Hope Classic to win in 1999 on his way to reaching No. 1 in the world that year.

Duval and his stepson were tied with Bernhard Langer and 17-year-old Jason Langer, who made two eagles on the last five holes. This Langer tandem won in 2014.

Jack Nicklaus, playing with grandson G.T., opened with a 68.

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Woods' 2018 schedule coming into focus ... or is it?

By Golf Channel DigitalDecember 16, 2017, 5:46 pm

Two weeks after his successful return to competition at the Hero World Challenge, Tiger Woods’ 2018 schedule may be coming into focus.

Golfweek reported on Saturday that Woods hopes to play the Genesis Open in February according to an unidentified source with “direct knowledge of the situation.”

Woods’ agent Mark Steinberg declined to confirm the 14-time major champion would play the event and told GolfChannel.com that Woods – who underwent fusion surgery to his lower back in April – is still formulating his ’18 schedule.

Woods’ foundation is the host organization for the Genesis Open and the event supports the Tiger Woods Learning Center in Anaheim, Calif.

The Genesis Open would be Woods’ first start on the PGA Tour since he missed the cut last January at the Farmers Insurance Open.

Rose weathering delayed Indonesian Masters

By Associated PressDecember 16, 2017, 3:52 pm

JAKARTA, Indonesia - Justin Rose held a three-stroke lead after eight holes of the third round Saturday when play was suspended for the day due to bad weather at the Indonesian Masters.

Rose was 3-under on the day and led his playing partners Kiradech Aphibarnrat and Scott Vincent. The Englishman led both players by a stroke after the second round was completed Saturday morning due to weather delays on Friday.

Brandt Snedeker withdrew with apparent heat exhaustion on Friday on the 11th hole of the second round. Ranked 51st in the world, he flew to Jakarta looking to move inside the top 50 by the end of the year and ensure a spot in next year's Masters.

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Lexi (wrist) WDs from Diamond Resorts Invitational

By Golf Channel DigitalDecember 15, 2017, 11:27 pm

Lexi Thompson on Friday withdrew from the Diamond Resorts Invitational, citing inflammation in her wrist. Thompson, who teamed with Tony Finau to finish tied for fourth place in last week's QBE Shootout, said she is under strict doctor's order not to hit golf balls until mid-January.

The Diamond Resorts Invitational is scheduled Jan. 12-14 at Tranquilo Golf Club in Orlando, Fla. The field for te 54-hole event includes LPGA and PGA Tour Champions players, as well as celebrities from the worlds or sports and entertainment.