Callaway Golf Co. yesterday reported results in line with estimates it provided last month as the company's losses for the third quarter more than doubled from last year.
For the quarter ended Sept. 30, the Carlsbad golf equipment company had net sales of $193.8 million, down from $220.6 million for the same period in 2005. The company posted a net loss of $11.9 million, or 18 cents per share, compared with a loss of $4.8 million, or 7 cents per share, for the third quarter of 2005. Callaway attributed the weak results to continued problems with its Top-Flite golf ball business, which the company bought out of bankruptcy in 2003.
George Fellows, CEO of Callaway, said the company was planning an aggressive relaunch of the Top-Flite brand in 2007 to help turn around the struggling business. Fellows touted Callaway's gain of market share in its key brands and said that cost-cutting measures were boosting the company's bottom line.
“We continue to make progress on many fronts this year, despite the disappointing performance in our Top-Flite brand,” he said.
Still, analysts were disappointed with Callaway's continued weak performance.
Terry McAndrews, editor of the Web Street Golf Report, said that while the company was touting higher market share in its core businesses, sales were down significantly for the quarter.
“The future may indeed be bright, according to management,” he said. “But as the present suggests, as attested by its operating results, that the brand has yet to completely turn the corner.”
