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CNN Live At Daybreak

Golf Club Maker Buys Golf Ball Maker

Aired July 01, 2003 - 06:42   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


CAROL COSTELLO, CNN ANCHOR: Time for a little business buzz right now. Callaway is adding a golf ball maker to its clubhouse.
Let's get the details of this golf deal from Carrie Lee at the Nasdaq market site.

Carrie, tell us.

CARRIE LEE, CNN FINANCIAL NEWS CORRESPONDENT: OK, Carol, we're talking about Callaway, which is the maker of the Big Bertha drivers, buying Top-Flite, which is the world's largest golf ball maker, for $125 million. Now this deal was announced after Top-Flite filed for bankruptcy. The deal still needs government regulator's approval. Top-Flite did have $250 million in sales last year, but it also had $530 million worth of debt, so that burdened the company.

Now Callaway does plan to continue making Top-Flite, Ben Hogan and Strata golf products, which account for about 70 percent of that company's sales. So people who are fans, don't worry, Carol, they'll still be able to buy Top-Flite products.

COSTELLO: Good, I was worried.

Futures looking flat this morning?

LEE: You know flat to slightly lower. Things could change about a half an hour into the session this morning that's when we'll get a big report on the manufacturing sector of our economy. And then yesterday we saw a little bit of a sell-off at the close. The major indexes closed down slightly, but we're still coming off of a pretty nice quarter. Yesterday was the final day of Q2, the Dow up about 12 percent, the Nasdaq up 21 during the period.

One stock to keep an eye on today, Dow component Boeing. Two things happening here. No. 1, Deutsche Bank has lowered its rating on the stock. And then also, AirTran is expected to announce it's buying 100 Boeing planes for about $6 billion. So Boeing could be a good mover today -- Carol.

COSTELLO: All right, we'll keep an eye on it. Carrie Lee, many thanks.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com






Aired July 1, 2003 - 06:42   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: Time for a little business buzz right now. Callaway is adding a golf ball maker to its clubhouse.
Let's get the details of this golf deal from Carrie Lee at the Nasdaq market site.

Carrie, tell us.

CARRIE LEE, CNN FINANCIAL NEWS CORRESPONDENT: OK, Carol, we're talking about Callaway, which is the maker of the Big Bertha drivers, buying Top-Flite, which is the world's largest golf ball maker, for $125 million. Now this deal was announced after Top-Flite filed for bankruptcy. The deal still needs government regulator's approval. Top-Flite did have $250 million in sales last year, but it also had $530 million worth of debt, so that burdened the company.

Now Callaway does plan to continue making Top-Flite, Ben Hogan and Strata golf products, which account for about 70 percent of that company's sales. So people who are fans, don't worry, Carol, they'll still be able to buy Top-Flite products.

COSTELLO: Good, I was worried.

Futures looking flat this morning?

LEE: You know flat to slightly lower. Things could change about a half an hour into the session this morning that's when we'll get a big report on the manufacturing sector of our economy. And then yesterday we saw a little bit of a sell-off at the close. The major indexes closed down slightly, but we're still coming off of a pretty nice quarter. Yesterday was the final day of Q2, the Dow up about 12 percent, the Nasdaq up 21 during the period.

One stock to keep an eye on today, Dow component Boeing. Two things happening here. No. 1, Deutsche Bank has lowered its rating on the stock. And then also, AirTran is expected to announce it's buying 100 Boeing planes for about $6 billion. So Boeing could be a good mover today -- Carol.

COSTELLO: All right, we'll keep an eye on it. Carrie Lee, many thanks.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com