Despite "lingering production problems" with its golf
ball, Callaway Golf Co. reported record sales of $289M
during the second quarter, "more evidence that golf business
is back on the fairway after two years in the rough,"
according to Mike Freeman of the SAN DIEGO UNION-TRIBUNE.
Callaway's sales increased 26%, and net income rose 82% to
$45M. But Callaway lost $13.4M for the quarter on its golf-
ball business. First Security Van Kasper analyst Bud
Leedom: "The ball problems are hurting [Callaway] in what
has been a record year in the club business" (SAN DIEGO
UNION-TRIBUNE, 7/27). Callaway President Chuck Yash said in
a statement: "Due to these production problems, golf ball
sales expectations for the full year have been adjusted to
approximately $45 million." BRIDGE NEWS' Jennifer Allen
writes that the "new" $45M projection "compares with
previous" company plans for sales of $50-70M (BRIDGE NEWS,
7/26). Shares of Callaway closed yesterday at 12 9/16, down
13.4% from Wednesday's close of 14 1/2, when the earnings
were released (THE DAILY).
