Fitness equipment recalled; company's stock drops.One recent CPSC CPSC Consumer Product Safety Commission (US) CPSC Computer Science (course) CPSC Canadian Plastics Sector Council (Ottawa, ON, Canada) CPSC Chemical Processing Safety Committee recall created an immediate financial problem for the manufacturer. The company involved reportedly lost an estimated $80 million when customers and investors reacted to the news story. A Vancouver, Washington-based company, The Nautilus nautilus, in zoology nautilus, cephalopod mollusk belonging to the sole surviving genus (Nautilus) of a subclass that flourished 200 million years ago, known as the nautiloids. Group, Inc., had joined with CPSC in announcing a recall of its Bowflex Power Pro strength machine Jan. 29. (5) The fitness machines had a defect that posed a risk of injury to the user. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. CPSC, while being used in the incline position, the backboard back·board n. 1. A board placed under or behind something to provide firmness or support. 2. A board placed beneath the body of a person with an injury to the neck or back, used especially in transporting the person in such a way bench can collapse and break. In addition, the "lat tower" can rotate forward and fall, possibly injuring the user. Nautilus received at least 70 reports of the backboard benches breaking and 18 reports of the "lat tower" falling. The machines sold originally for between $1,200 and $1,600. A report in The Columbian newspaper, of Clark County, Washington Clark County is a county located in the southwestern part of the U.S. state of Washington, across the Columbia River from Portland, Oregon. Clark County was the first county of Washington, named after William Clark of the Lewis and Clark Expedition. , Jan. 30, indicated that confusion caused by CPSC's use of the word "recall" to describe the action resulted in the company's stock price dipping from $15.83 on one day to $13.37 the next. Greg Hammann, the company's CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , said that the stock price decline caused the company's net worth to drop by approximately $80 million. (6) The company is providing free repair kits upon request by equipment owners. Consumers may call 8883020-3020 or go to www.bowflex.com on the Internet. Hammann told the newspaper that the company would soon be back to normal and that Nautilus' financial condition will stabilize in the long-term. The Columbian reported that the recall news release from CPSC happened to be issued on the same day that Nautilus released its fourth-quarter and year-end earnings report. The earnings report was a "mixture of good and bad, as the company is in the midst Adv. 1. in the midst - the middle or central part or point; "in the midst of the forest"; "could he walk out in the midst of his piece?" midmost of an 18-month turnaround effort," according to the newspaper. (5) "CPSC, Nautilus Direct Announce Recall of Bowflex Power Pro Fitness Machines," U.S. CPSC, Office of Information and Public Affairs, Jan. 29, 2004. Release # 04-073. (60 Nelson, Jonathan, Columbian staff writer, "Nautilus Stung by Recall," The Columbian, Jan. 30, 2004. |
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