Dunlop Sports Co. Ltd. of Japan has suspended its dividend and cut executive compensation after a mark down of its shares of Cleveland Golf Company Inc. caused it to report an unexpected loss for the year ended Dec. 31, 2015.
Dunlop Sports said it will record an impairment loss of .84 billion ($40 mm) on its shares of Cleveland Golf, resulting in a net loss of 1.80 billion ($32 mm) for the year, compared to its previous forecast of net income of 00 million ($6 mm). The revised forecast calls for Dunlop Sports' operating and ordinary income to plunge 40 percent to 1.20 billion ($10 mm) and .5 billion ($12 mm) respectively compared with the company's previous forecast.
Dunlop Sports will cut compensation of its top executives during the first quarter of 2016. The cuts include:
president and director by 50 percent;senior managing executive officer and directors by 30 percent; and senior executive officer and directors by 10 percent.
Cleveland Golf is expected to post a deficit in 2015 because a certain amount of investment is necessary to recover its performance in the future.
