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After announcing an expected shortfall in its first quarter earnings, Callaway Golf shares "were clubbed" Monday, falling 3 9/16 to $28.75. In its estimates, Callaway cited El Nino and the "economic turmoil in Asia for an expected shortfall in earnings." CNBC's Bill Griffeth reported that the earnings estimate prompted "analysts to cut their ratings." Smith Barney analyst Keith Mullins: "Callaway has inventory that it needs to work off in its retail channel, specifically in California and in Florida. But also the demand in the Far East will continue to be an ongoing problem for them since that had been a source of much of their growth." More Mullins: "The woods will simply have to be priced to clear inventory. ... My expectation is that they'll lower price to get it out into the field, because it won't move on its own." CNBC's Griffeth: "Analysts say the company could make up a portion of the sales in the second and third quarters as it tries to reduce excess inventories" ("Market Wrap," CNBC, 3/2). In San Diego, Bruce Bigelow writes that "three analysts lowered" their Callaway recommendations from "buy" to "hold" and A.G. Edwards' Timothy Conders changed his to "sell." First Call Dir of Research Charles Hill: "I think the real news here is the downgrades in recommendations" (UNION-TRIBUNE, 3/3).