Callaway Posts Q4 Losses Of $72.7M; Forecasts Break-Even Profitability In '13
Callaway Golf posted lower sales and a "wider loss for its seasonally slow fourth quarter as the Carlsbad company ends a rough year and takes aim at a turnaround in 2013," according to Mike Freeman of the SAN DIEGO UNION-TRIBUNE. Callaway's revenues "dipped to $118 million for the quarter, compared with $154 million for the same period" in '11. The company "lost $72.7 million in the quarter, or $1.03 per share, compared with a loss of $1.01 per share a year earlier." For all of '12, Callaway "lost $133 million, or $1.98 a share, on revenue of $832 million." Callaway in '11 "posted a $182 million loss on sales of $887 million." Company President & CEO Chip Brewer said, "To say the metrics are disappointing would be an understatement. Fortunately, I think the bigger story is the turnaround and transformation that occurred during the year." Brewer throughout the year "simplified Callaway’s business" by selling its Ben Hogan and Top Flite brands, which the company acquired in '03 for $174M. He also "got out of a global positioning system venture and licensed the company apparel operations to third parties -- focusing Callaway on its core club and ball businesses." Meanwhile, Brewer "beefed up marketing, including signing endorsement deals" with golfers Phil Mickelson, Ernie Els and Ryo Ishikawa. Callaway forecasts '13 sales of $850M and "break-even profitability, excluding dividends on preferred shares." The company "did not provide quarterly forecasts" (UTSANDIEGO.com, 1/31). As of presstime, shares of Callaway were trading at $6.57, up 0.08% (THE DAILY).