Fortune Brands reported that excellent reception on new high performance products from Titleist and Cobra fueled a record first quarter for its Acushnet Golf division, which also includes the FootJoy brand. Sales for the period increased 9.0% to $372.5 million from $342.6 million in the year-ago period. Sales in the U.S were up in high-single-digits and sales in the international markets increased at a strong double-digit rate in local currencies.
Sales growth was aided by the earlier timing of shipments into some markets compared to the year-ago quarter. Shipments of the Titleist Pro V1 ball were said to be “up solidly” in the quarter and golf ball sales further benefited from the introduction of new Pinnacle models. Golf club revenues were up in double-digits. Footjoy gloves and performance apparel revenues were said to be up, but golf shoe sales were flat.
Operating income grew 3.0% to $58.4 million in Q1 from $56.7 million in Q1 last year, impacted a bit by higher raw material costs, adverse FX rates, and stock option expense.
The company said they are up against tough comparisons to second quarter 2004. Results are expected to continue to be impacted by higher costs for commodities, as well as the first year of stock option expenses. For the full year, the company expects to see operating income before charges in golf to grow low- to mid-single-digits.
