SBD/July 27, 2012/FinancePrint All
Callaway Golf posted Q2 sales and earnings "generally in line with Wall Street’s estimates on Thursday but expects weaker results for the rest of the year as it takes steps to turn around its ailing business,” according to Mike Freeman of the SAN DIEGO UNION-TRIBUNE. Callaway “reported sales of $281 million and earnings of $3.3 million.” That “compares with sales of $274 million" for the same quarter last year.” Callaway President & CEO Chip Brewer said that the company “has not made progress as fast as he’d hoped, which led to the 12 percent cut in its workforce.” He said that his “strategy is to narrow Callaway’s sights to its core products and brands.” This included “selling off the company’s Top-Flite and Ben Hogan businesses.” Brewer: “We intend to be really good at a few things. We are focusing our resources on golf clubs and golf balls, and on the Callaway and Odyssey brands.” Freeman notes Callaway “expects full year sales of $835 million to $865 million -- below the $887 million the company reported in 2011” (SAN DIEGO UNION-TRIBUNE, 7/27). At presstime, shares of Callaway were trading at $5.51, down slightly from yesterday's close of $5.53 (THE DAILY).