VANCOUVER, WA — After announcing lower-than-expected revenues during the fourth quarter of 2005 due to manufacturing production glitches, Nautilus is reorganizing the company into three separate business divisions — fitness equipment, international equipment and fitness apparel.
Nautilus posted a net income of $2.8 million during the fourth quarter of 2005, which was more than an 80 percent drop from the fourth quarter of 2004. The manufacturer planned to introduce six new residential and commercial treadmills and Treadclimbers during the holiday season, but manufacturing issues caused delays in getting the products to the consumers. The day Nautilus announced its manufacturing problems, its stock price plummeted more than 24 percent.
Nautilus also appointed new executives in manufacturing and operations. Tom Hawkins, the former vice president of Levi Strauss, will lead Nautilus' fitness equipment division, which represents more than 80 percent of the company's revenues. Nautilus also named Mark Meussner as the vice president of manufacturing, Dustin Grosz as the vice president of operations, Darryl Thomas as president of the international equipment business, and Juergen Eckmann as the acting president of the fitness apparel business. Company-wide financial, IT, legal, human resources and communications teams will support the three new business divisions.