EXECUTIVES

NIKE CHIEF RESIGNS; BOARD APPOINTS PEREZ

Nike Incorporated said Phil Knight, who co-founded the company in 1972 selling shoes from his car and built it into the world’s biggest athletic-shoe maker, resigned as chief executive officer. William Perez, 57, CEO of S.C. Johnson & Son, will replace Mr. Knight after a more than yearlong search for a successor. Mr. Knight, 66, will remain chairman, the Beaverton, Ore.-based company said in a statement. Knight grew Nike into a company with $12.3 billion in sales last year and about 40% of the $16 billion branded American sneaker market, more than two times its next competitor, Reebok International Ltd. He pioneered the concept of using sports celebrities, such as Michael Jordan, to plug the shoes, known for their swoosh logo and Just Do It tag line. Nike selected Perez, who has run in 11 marathons, because of his experience in international markets, building multiple brands, and with mergers and acquisitions. Nike is expanding internationally, where sales now surpass the domestic market, while buying other brands, such as Converse. S.C. Johnson & Son Inc. is a closely held maker of Raid bug spray and Off! insect repellent based in Racine, Wis.

– Bloomberg News

ECONOMY

LEADING INDICATORS FALL AGAIN IN OCTOBER

The Index of Leading Economic Indicators, a widely watched gauge of future economic activity, fell in October for the fifth straight month, suggesting that the economy may be slowing, a private research group reported yesterday. The Conference Board said that its main indicator of future economic growth fell 0.3% in October, following declines of the same size in September and August. The October decline was steeper than the fall of 0.1% that economists had been expecting. An economist at the New York-based research group, Ken Goldstein, called the latest decline in the index “a clear signal that the economy is losing steam.” He also said that “worries about where the economy is headed may cause some strategic plans to be put on hold.” However, the Conference Board also said that while weakness in the economy has become more widespread in recent months, the recent declines in the index have not been large enough or persistent enough to indicate that the current economic expansion is coming to an end. The index is calculated by combining a number of factors believed to be good indicators of the direction of the economy over the next three to six months, such as manufacturing, interest rates, consumer expectations, stock prices, and money supply. Separately, the Labor Department reported that new claims for unemployment insurance dropped by a seasonally adjusted 3,000 to 334,000 last week, the lowest level since the end of October. Filings had increased by 5,000 the previous week.

– Associated Press

EARNINGS REPORTS

GOOGLE SAYS SALES GROWTH MAY NOT BE SUSTAINABLE

Google Inc., the world’s most-used Internet search engine, said today its revenue growth rate in the third quarter may not be sustained into the fourth period and beyond. Google’s revenue of $805.9 million in the third quarter grew 15% from the three months ended in June. In a November 12 filing with the Securities and Exchange Commission, the company said it expected an “inevitable decline in growth rates as our revenues increase to higher levels” and because of competition. “We believe that our revenue growth rate from the second quarter to the third quarter of 2004 may not be sustainable into the fourth quarter of this year and in future periods,” the company said in an SEC filing yesterday. Competition for search-linked advertising is increasing as Yahoo! Inc. and Microsoft Corp. introduce new features to lure Web surfers and advertisers. Shares of the Mountain View, Calif.-based company fell $4.96, or 2.88%, to $167.54. They had more than doubled since their August initial public offering price of $85. Google’s net income in the third quarter more than doubled to $52 million, or 19 cents a share, from $20.4 million, or 8 cents, a year earlier.

– Bloomberg News

DISNEY FOURTH-QUARTER PROFIT RISES 24% ON ESPN AD SALES

Walt Disney Company, the world’s second-largest broadcasting and entertainment company, said fiscal fourth-quarter profit rose 24% as its ESPN cable sports network boosted results. Net income rose to $516 million, or 25 cents a share, in the quarter ended September 30, from $415 million, or 20 cents, a year earlier, the company said yesterday in a statement distributed by Business Wire. Burbank, Calif.-based Disney said sales rose 7.5% to $7.54 billion from $7.01 billion. Disney benefited from higher ad sales at its cable networks, including ESPN. Disney’s consumer products unit, which licenses products to retailers such as Wal-Mart Stores Inc., also contributed to the higher profit. Disney shares fell 19 cents to $26.37 in New York Stock Exchange composite trading. They have risen 17% in the last year, compared with a 14% gain in the Standard & Poor’s 500 Index and a 13% increase in the shares of Time Warner. Disney shut its Walt Disney World resort for three days because of Florida hurricanes, cutting profit by 1 cent a share. The company’s box-office sales in the America and Canada through September 30 fell 47% to $902 million, dropping Disney to third place among studios from first in 2003.

– Bloomberg News