The Acushnet Golf division of Fortune Brands, Inc. reported a 3.3% increase in third quarter sales to $278.4 million from $269.6 million in the year-ago quarter. Operating income for the division, which includes the Titleist, Footjoy, Pinnacle, and Cobra golf brands, among others, rose 5.9% to $28.6 million for the period, compared to $27.0 million last year. The company said it saw growth in every product category in Q3.
The company reported that golf ball market share increased for both the Titleist and Pinnacle brands. They also laid claim to the number two share in both metals and irons at both on and off-course U.S golf shops for the combined Titleist and Cobra brands. FootJoy saw improved sales in the period and maintained its market leading share in footwear. Management said “sustained innovations” in gloves helped FootJoy gain share in that category. Half of FootJoy's third quarter shipments of footwear and gloves were newly-introduced products.
The company also reported that its supply of Surlyn has been fully restored after Hurricane Rita disrupted production of the DuPont material used in the formulation of golf balls. Management said the shortfall will create a “negative manufacturing variance” in the fourth quarter, but reiterated that they did not expect it to have a meaningful impact on their position in the marketplace. Management also pointed to excellent growth opportunities in the International markets going forward, particularly in Asia. The company has been working through distributors in the region, but they have now opened their own distribution center. They also plan to open an operation in China.
Looking ahead, Acushnet sees the timing of expenses, new product introductions, and manufacturing variances resulting in lower fourth quarter results than a year ago, but they still expect to achieve their full-year growth targets. They continue to target full-year operating income, before charges, to be up in the mid- to high-single-digit range.
