Sherborne says it controls Nautilus' board after shareholder vote
Although the results are not official yet, Sherborne Investors LP, which owns a 23.5-percent stake in Nautilus (NYSE: NLS), issued a press release saying it had succeeded in its effort to gain control of the board of the fitness company.
Sherborne, which owns about 7.4 million shares, had called for the removal of four board members and the election of replacements. A special shareholder meeting was held to vote on several proposals put forth by Sherborne, which said it was dissatisfied with the financial performance of the struggling company and turnaround plan put in place by management.
Sherborne's press release said based on information provided by its proxy solicitation firm, D.F. King & Co. Inc., it believes all four Sherborne nominees have won election to the Nautilus board of directors. Official results are not expected for several weeks.
Based on preliminary figures, Sherborne reported the following individuals, which it put forth, were elected to the company's board of directors: Edward J. Bramson, Gerard L. Eastman, Michael A. Stein, Richard A. Horn, replacing Peter Allen, Evelyn Follit, Donald Keeble and Diane Neal. They will join three existing members: Robert Falcone, Ronald Badie and Marvin Siegert.
Nautilus CEO Robert Falcone told The (Portland) Oregonian newspaper that the election results were still unknown, but the company's proxy service said that voting was close.
Nike's Q2 profit increases 10 percent
Nike (NYSE: NKE) posted a 10-percent increase in second-quarter profit, saying it was largely fueled by international sales growth.
Nike reported second-quarter net income of $359.4 million, or $0.71 per share, up from $325.6 million, or $0.64, in the same period a year earlier.
Quarterly revenue grew 14 percent to $4.3 billion for the quarter ending Nov. 30. Changes in currency accounted for 4 percentage points of that growth. The company said it benefitted from a weaker dollar, which makes exports less expensive and more competitive abroad.
The company registered its largest revenue growth overseas. Revenue grew 19 percent in the Americas region, with Europe following closely at 18 percent, while and the Asia-Pacific regions jumped 17 percent. By comparison, revenue growth in the U.S. reached 7 percent.
Company officials said they were pleased with the performance in the domestic market, which had been struggling for some time with mall-based retailers. Nike said sales were up in Nike-owned stores and nine of its top 10 retail accounts.
The company also reported that worldwide future orders, which are scheduled to be delivered from December through April, totaled $6.5 billion -- up 13 percent from the same period last year. Changes in currency exchange rates increased orders growth by 3 percent.
The company also saw cash and short-term investments improve -- at a reported $3.1 billion at the end of the quarter, compared with $1.9 billion last year.
Nike subsidiaries such as Converse, Nike Golf and Cole Haan, grew 16 percent to $613.7 million.
Nike has made several changes to its subsidiary lineup recently such as selling the Starter brand and putting Nike Bauer Hockey up for sale. The company also recently announced plans to buy European soccer company Umbro PLC. Nike added that it does not see any other subsidiary moves in the immediate future.
Additionally, Nike projects low double-digit revenue growth for the second half of 2008.
Amer Sports exercises 2002 warrants
Amer Sports said 3,300 shares have been subscribed for as a result of an exercise of its 2002 warrants. The corresponding increase in the company's share capital amounting to EUR 13,200 (USD 19,010) was registered on Dec. 18, 2007. As a result of this increase, Amer Sports' share capital totals EUR 2.89 million (USD $4.16 million) and the total number of shares in issue is more than 72.3 million.
Shareholder rights commence from the registration date of Dec. 18. The new shares were listed on the Helsinki Exchanges on Dec. 19, 2007.
The share subscription period ended on Dec. 31, 2007.
(Conversion of Euros into U.S. dollars is for information only, is not necessarily relative to earnings, and is based on the currency rate as of Dec. 18.)
Life Time Fitness appoints new president
Life Time Fitness (NYSE:LTM) promoted Michael J. Gerend, to the position of president and chief operating officer, effective Dec. 14, 2007. Gerend joined the company in March 2003 as chief operating officer. Prior to Gerend's promotion, Bahram Akradi held the title of chairman, CEO and president.
Gerend’s appointment follows the recent assumption of expanded duties that include oversight of Life Time Fitness club operations and club leadership, and the direct management of Life Time University, in addition to his existing chief operating officer responsibilities.
Gerend formerly worked with Champion Air, where he served as president and chief executive officer since 1998.
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