Callaway Golf Co. Reports Net Profit of $10M for Q2Monday, July 29, 2013
Callaway Golf Co., the Carlsbad maker of clubs, reported second quarter net profit of $10 million on sales of $250 million.
That compared with the same quarter of 2012 when the company reported net income of $3 million on sales of $281 million.
For the six months ended June 30, Callaway reported net income of $52 million on sales of $537 million. That compared with net income of $35 million on sales of $566 million for the first half of 2012.
The company noted it partially sustained lower sales because of the April 2012 sale of two of its divisions, Top Flite and Ben Hogan, which cut sales for the second quarter by $25 million and by $45 million in the first half.
CEO Chip Brewer said the company’s turnaround plan remains on track and has been growing its hard goods market share despite challenging market conditions that include adverse weather conditions and higher promotional costs.
Callaway reduced forecasted revenue for this year to a range from $810 million to $820 million, down from the earlier projection of $830 million.
Shares of Calloway, under the ticker ELY on the New York Stock Exchange, closed at $7.25 on July 26, down 3 cents from the previous day’s closing price when the financial results were released. Its 52 week range is $5.30 to $7.30.
— Mike Allen