Golf shaft specialist Aldila, Inc. said sales gains in both of its major categories catapulted sales 36.2% for the second quarter and helped the company swing to a profit from a year-ago period that suffered from an overall weak market.
Sales improved to $14.4 million in Q2 from $10.6 million a year ago while earnings reached $704,000, or 13 cents per share, compared to a loss of $627,000, or 12 cents per share, in the year-ago period.
Management said golf shaft sales increased by 26% for the quarter on strength from new products, while a 100% improvement from composite materials was attributed to a surge in sales from customers in the recreational industry. The company also reported a 162% increase in sales to customers in the industrial industry, although the increase only represents 11% of composite materials sales. Composite materials sales represented 22% of total sales for the quarter.
Average selling prices declined 6% in Q2 and management noted that the sell-through of clubs is “still a concern” and retail results through June “point to a decline in metal wood and iron club sales,” due partially to less discounting than last year.
Backlog was $6.7 million as of June 30 as compared to $6.8 million year-ago period-end. The company’s balance sheet is strong, with $8.1 million in cash after it paid down its debt by $3.5 million during the trailing six months. As of June 30, the company said it has zero debt and has terminated its credit facility with Key Bank.
