Nautilus Shares Sink on Bowflex Recall
Published: Thursday, November 18, 2004
Shares of exercise machine maker Nautilus Group Inc. sank more than 5 percent after the company announced a voluntary recall of certain Bowflex home gym models after a review of incident records.
The company's stock fell $1.14 to $20.02 on the New York Stock Exchange in afternoon trading.
The recall includes shipping free-of-charge a seat pin repair kit to customers with certain Bowflex Power Pro and Ultimate models. The company will also send a new incline support bracket to owners of the Power Pro without lat towers built before Sept. 1, 2002, after they respond to a post card being mailed this week.
The company said it is paying for the recalls out of a $2 million warranty reserve, and that it doesn't expect the recall "to have a material impact on our business performance."