Callaway’s Operating Chief Resigns

The management shake-up at Callaway Golf Co. continued Monday with the resignation of President and Chief Operating Officer Patrice Hutin.

William C. Baker, who replaced Ron Drapeau as Callaway chairman and chief executive in August after Drapeau resigned under board pressure, will assume Hutin’s operational duties.

“Clearly they’re going to change direction,” said analyst Dennis McAlpine of McAlpine Associates. “It looks like [Baker] is clearing the decks to get his own people in.”

The Callaway board anticipates “no further executive changes at this time,” lead independent director Ronald Beard said in a statement.

Hutin joined Callaway, maker of the Big Bertha clubs, in 2000 as senior vice president of sales for Callaway Europe. He was named last year as president and chief operating officer of the Carlsbad, Calif.-based company.

Baker said Hutin planned to return to Europe to reunite with his family and pursue other business opportunities.

Hutin’s resignation comes after the company reported a net loss of $35.9 million, or 53 cents a share, for the quarter ended Sept. 30, contrasted with net income of $2.3 million, or 3 cents, a year earlier. Callaway blamed the loss in part on price cuts and delays in launching products.

John Moran, an analyst with brokerage firm Ryan Beck & Co., predicted the resignation would fuel speculation that Callaway eventually would be sold. “I don’t think it’s right on the horizon,” he said. “I still believe these guys are committed to staying independent.”

Callaway shares rose a cent to $10.78 on the New York Stock Exchange.