SBD/Issue 93/Finance

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  • Callaway Golf Posts Lower Earnings In '09, Eyes Rebound This Year

     
    Callaway Golf posted lower earnings for its Q4 and full year ’09, but the company is forecasting a "rebound this year," according to Mike Freeman of the SAN DIEGO UNION-TRIBUNE. Callaway CEO George Fellows yesterday said, “We don’t expect 2010 to restore itself to pre-recession levels, but we think we’re going to make up a significant amount of ground.” Callaway said that it lost $18M, or $0.29 a share, in Q4, compared to a loss of $3M, or $0.05 a share, during the same period in '08. This year’s Q4 sales increased to $186M from $171M in the year-ago period. Callaway for the full year ’09 lost $20.9M, or $0.33 a share, on sales of $950.8M. The company last year had a net income of $66M, or $1.05 a share, on sales of $1.1B. Callaway “expects sales this year to reach” $990M-1.05B. Callaway “gets half its revenue from overseas,” and the company “thinks the dollar will weaken, helping its foreign sales.” It also is “working to expand into new international markets, including India and China” (SAN DIEGO UNION-TRIBUNE, 1/27). Callaway’s Q4 results were “better-than-expected,” and “reduced discounting and a better economic environment is likely to help boost margins” in ’10 (REUTERS, 1/26). At presstime,  Callaway shares were trading at $7.52, down 5.76% from yesterday's close of $7.98 (THE DAILY).

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