Spieth Set To Debut First Under Armour Shoe RBC Doesn't Renew Deal With Jason Day Ben Hogan Golf Reorganizing Struggling Business Nike Beats Analysts' Q2 Expectations Nike's Stock Posts Underwhelming Yearly Results Watson's Agent Denies Client Is Changing Golf Balls Strivr Labs Announces $5M Round Of Funding Sportradar Rolling Out New Accelerator Program VF Corp. Mum On Majestic Sale To UA Could Disney Really Let Go Of ESPN?
SBD/January 26, 2011/Finance
Callaway Posts Increased Sales For '10, But Profits Stumble
Published January 26, 2011
Callaway Golf "managed to boost sales last year despite the lingering
downturn in the golf industry," but the company "stumbled when
it came to profits, in part because of higher costs associated with the
ongoing move of its golf club assembly operation from Southern
California to Mexico," according to Mike Freeman of the SAN DIEGO UNION-TRIBUNE. Callaway yesterday reported sales of $968M in '10, up 2% from '09. The company posted a net loss of $18.8M ($0.46 a share), up from a $15.3M loss ($0.33 a share)
in '09. Callaway "faced higher expenses as it relocates club assembly from Carlsbad to
Monterrey, Mexico, and club distribution from San Diego County to
Dallas." Callaway President & CEO George Fellows said that the golf industry is "showing
some signs of recovery after two very tough years," and he "expects a small
increase in sales this year in the U.S. and Britain, along with solid
growth in emerging markets such as China and India." Callaway forecasts sales of $980M-1.02B in '11 (SAN DIEGO UNION-TRIBUNE, 1/26). At presstime, Callaway shares are trading at $7.23, down 5.7% from yesterday's close at $7.67 (THE DAILY).