K. Mennem 6:15 p.m., May 21
Ailing Callaway May Buy Conglomerate's Golf Business
Reuters is reporting that Carlsbad's Callaway Golf, which has just reported poor earnings and prospects, may join with Wall Street's Blackstone Group to buy the golf business of conglomerate Fortune Brands. Fortune announced late last year that it would sell or spin off its golf business, which makes Titleist equipment, among other things. Callaway reported Thursday (April 28) that its first quarter sales fell 6% and earnings per share dropped to 15 cents from 24 cents a year ago. Callaway also suspended its 2011 market because of the difficulties in Japan, its second biggest market. Callaway stock is down about 4% this morning (April 29).