Callaway Names Interim CEO, Plans Job CutsWednesday, June 29, 2011
Anthony Thornley has taken over as interim president and CEO of Callaway Golf Co. following the resignation of President and Chief Executive Officer George Fellows.
One day shy of the quarter’s end, Carlsbad-based Callaway said it expected a net loss of $55 million — including $48 million in noncash charges — on estimated second-quarter revenue of $270 million.
In a statement issued June 29, the sporting goods manufacturer announced a new round of layoffs at all levels of the company. It promised to share more details in its quarterly earnings conference call on July 26.
The company made the announcements after the stock market closed June 29. Shares traded hands for $5.99 after hours, more than 5 percent lower than their closing price. Callaway’s stock symbol is ELY.
Thornley was president and COO of chip-maker and communications technology developer Qualcomm Inc. from 2002 to 2005. He joined the Callaway board in 2004. In a prepared statement, Thornley said the company was not keeping pace with an industry recovery. He spoke of the need for a leaner organization and the need to put cost savings into more effective marketing.
Fellows said in the company-issued statement that a cross-country commute and other demands on his personal life had spurred his decision to step down. He said that he was proud of what he had accomplished in his six years with the company. The Callaway statement credited Fellows with driving record sales and earnings prior to the economic downturn of 2007 to 2009.
— Brad Graves