Dunlop Sports Co. has suspended payment of its dividend and reduced executive pay for three months from January, after a sharp sales decline at Cleveland Golf Company and a large impairment loss on the shares of this subsidiary. Dunlop Sports said in a statement that the golf company is struggling to reach its initial earnings targets for 2015 and it will suffer a loss in 2016, due to the investments required to recover its performance. Dunlop Sports, which further sells golf products under the XXIO and Srixon brands, said it would post an estimated loss of 4.84 billion yen (€37.8m-$40.2m) on the valuation of its shares in Cleveland Golf. The issues led the company to strongly downgrade its earnings forecast for the full year. While it predicted net income of ¥700 million (€5.3m-$5.8m) in February, the latest forecast amounts to a loss of ¥3.80 billion (€28.9m-$31.6m). This includes a loss of ¥3.95 billion from the lump-sum amortization of goodwill. Dunlop Sports' revised forecast calls for sales to reach ¥77.7 billion (€590.4m-$645.3m), down by 1.6 percent from the previous forecast, but the forecasts for operating and ordinary incomes were both downgraded by about 40 percent, to ¥1.2 billion (€9.1m-$10.0m) for operating income and ¥1.5 billion (€11.4m-$12.5m) for ordinary income. The pay cuts include reductions of 50 percent for the president and representative director, 30 percent for senior managing executive officers and directors, and 10 percent for senior executive officers and directors. Established in California, Cleveland Golf was purchased in 2007 from the Quiksilver group, which indirectly acquired it two years earlier when it bought the Rossignol group.