Callaway Golf Reports Q1 Profits Are Up 11% Over Last Year, Sales Down Slightly
Callaway Golf, “which is in the midst of a tough restructuring with a new CEO in charge, may be on the verge of a turnaround as profits jumped to $32 million in its first quarter, up 11 percent over the same year-ago period,” according to Pat Maio of the NORTH COUNTY TIMES. In Q1 which ended March 31, Callaway reported $32M in profits “compared with $13 million in the same year-ago period.” Sales came in at “$285 million, slightly down from $286 million in the 2011 quarter.” Callaway Exec VP & CFO Brad Holiday said that the recovering company “is expected to see sales in the first six months of 2012 at $560 million to $575 million.” Callaway CEO & President Chip Brewer said, "There were many initiatives under way when I arrived at Callaway targeted at reducing costs and simplifying the business and thus providing greater focus on the company's core business” (NORTH COUNTY TIMES, 4/27). In San Diego, Mike Freeman noted Callaway Golf “missed sales and earnings targets for the first quarter” as Wall Street analysts "expected sales of $310.4 million." Callaway said that it “would post a gain" of $6.6M from the sale of Ben Hogan and Top Flite brands during the first quarter. Brewer said that it was “too early to discuss his overall strategy for improving” the company. Brewer: “We need to regain momentum in our core brands -- Callaway and Odyssey -- and our core products -- golf clubs and golf balls” (UTSANDIEGO.com, 4/26).