Nike says it plans to slash $100 million on spending for star endorsements

Article Abstract:

Nike Inc has announced plans to trim its $500 million sports-star endorsements budget by $100 million, following the lead of fellow athletic shoe makers Reebok International Ltd and New Balance. Nike's 1st qtr 1998 revenue fell 9.5% from 1997, to $163.8 million. Nike Chair Philip Knight said the company still plans to spend 10% of its $9 billion revenue on "demand creation," and has no plans to discontinue celebrity endorsements entirely. New Balance pres James Davis says his company's avoidance of endorsements has not stopped it from growing to about $700 million in 1998, up from $220 million in 1992, and that endorsements are less effective now because sports starts have stopped being role models.

Comment:

Says it will trim sports-star endorsements budget by $100 million, following other sneaker makers

Marketing procedures, Athletic & Other Footwear, Other Footwear Manufacturing, Campaigns, Advertising Activity, Demographics, Spokesperson, Nike Inc., Reebok International Ltd., New Balance Athletic Shoe Inc., Michael Jordan, Shaquille O'Neal

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Continental AG to buy ITT Industries unit for $1.93 billion

Article Abstract:

Continental AG, the world's fourth-largest tire manufacturer from Germany, will acquire the brake and chassis unit of ITT Industries Inc. for $1.93 billion. The deal, which still must be approved by US and European antitrust regulators, signals a radical departure for Continental from its traditional tire business as it becomes a supplier of technology and electronic systems for auto makers. ITT Industries, based in White Plains, NY, will pay down debt and make new acquisitions with proceeds from the sale.

Comment:

Will acquire the brake and chassis unit of ITT Industries for $1.93 bil

Asset sales & divestitures, Acquisitions & mergers, Germany, Other Electronic Component Manufacturing, Tires, Tire Manufacturing (except Retreading), Electronic Components NEC, Electronic components, ITT Industries Inc., Continental AG

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