Callaway Golf Reports Q4 Losses, Expects Sales And Profits To Improve This Year
Callaway Golf yesterday reported "wider fourth quarter losses," but said that it “is hitting expense reductions goals and that sales and profits will improve" in '12, according to the AP. Callaway said that it “lost $65.6 million in the quarter, compared with a loss of $34.9 million in the same year-ago period.” The Carlsbad-based company also said that last summer it “had eliminated 7 percent of its workforce as part of its restructuring as the economy took its toll on the sport.” Revenue for the three-month period that ended Dec. 31 “fell 17 percent from $185.5 million to $153.9 million as sales of woods tumbled nearly 40 percent, and sales for irons, golf balls and accessories slid by double digits.” Putter sales, however, “rose 13 percent.” For the year, Callaway “lost $182.3 million versus a loss of $29.3 million in 2010,” making the company's adjusted loss $0.63 per share. Revenue declined 8% to “$886.5 million from $967.7 million.” Callaway anticipates adjusted earnings of $0.40-0.45 per share for the first half of '12, with revenue between $610-630M. Gross margins "are expected to be about" 44% (AP, 1/25). At presstime, Callaway shares were trading at $6.50, up .08% from yesterday's close of $6.42 (THE DAILY).