CARLSBAD, Calif. (Aug. 4)—Ronald A. Drapeau, chairman and CEO of Callaway Golf Co. since 2001, has resigned from the company unexpectedly and without giving any reason.
Callaway Golf, whose operations include the Top-Flite golf ball manufacturing unit, named William C. Baker, its longest-tenured board member, to assume the responsibilities of chairman and interim CEO. Baker, 71, has served on the Callaway Golf board since February 1994.
The resignation of Drapeau, 57, comes within weeks of Callaway disclosing a 60-percent drop in second-quarter earnings, primarily due to charges related to the Top-Flite operations acquired in late 2003.
Second-quarter net income of $13.7 million was down 59.9 percent from 2003 and was reduced by $6.7 million in charges related to the Top-Flite acquisition. Six-month earnings of $54.3 million were 29.1 percent lower and included $9.9 million charges.
Golf ball sales for the six months were $146.6 million, or 22.2 percent of Callaway's business. Callaway is projecting Top-Flite will have an operating loss this year of $13.7 million, based on its half-year performance.