Callaway Golf announced "better-than-expected" first
quarter earnings, causing some analysts to believe that the
company and entire golf industry are "moving out of the
rough," according to Erik Bratt of the S.D. UNION-TRIBUNE.
Callaway reported net income of $12.8M, or $.18 per share,
for the first three months of '99, compared to income of
$11.1M, or $.16 a share, over the same period last year.
Callaway's net sales, "led" by its new Great Big Bertha Hawk
Eye Club, which was introduced in January, grew 5% to
$185.7M at the end of March. S.F.-based Hambrecht & Quist
analyst Shawn Milne: "They certainly had a good quarter,
rebounding from a tough fourth quarter. Their new products
were certainly well-received by the marketplace."
Callaway's results came after many analysts expected it to
post first-quarter earnings of $.12 a share. The new Great
Big Bertha Hawk Eye and other titanium metal woods accounted
for $81.6M of its sales during the quarter. Meanwhile,
Callaway Chair & CEO Ely Callaway said that his company
"plans to add" 250-300 employees this year, half of them for
its new golf ball division. Callaway is expected to spend
around $140M to develop the ball (UNION-TRIBUNE, 4/29).
