Fortune Brands reported that the Acushnet golf division delivered its third consecutive quarter of double-digit sales growth in the fourth quarter of 2003, rising 12.8% to $192 million from $192.8 million in Q4 2002.
Full year sales in the division were up 11.3% to $1.1 billion from $1.0 billion in the previous year.
Operating income for the golf unit fell 43.2% to $6.5 million, excluding charges, from $10.4 million in the year-ago period. On a reported basis, operating income fell 57.7% to $4.4 million, including charges. The company said Q4 comparisons were “adversely impacted by the timing of promotional spend, startup costs for international operations, and higher incentive accruals”. Full year operating income for the division was up 7% to $139 million, or up 12% to $145 million before charges for the consolidation of all plants.
FO said the Titleist Pro V1x led a double-digit sales increase for the Titleist and Pinnacle golf ball products. The company said they increased Golf Ball market share by 400 basis points, measured in units, in both on- and off-course U.S. Golf Ball market for the YTD November period. On a dollar basis, share rose 500 basis points.
Fortune Brands chairman and CEO Norman Wesley said they dont expect to see “an appreciable change” in ball prices due to Calloways acquisition of Top-Flite.
The Titleist Titanium 983 drivers and Cobra SC clubs drove double-digit gains in Golf Club sales in Q4 and the company said that Titleist achieved its “highest share ever in Drivers”, picking up 500 basis points in Woods and 200 basis point in Irons for the YTD period through November.
FootJoy's market-leading share was up 200 basis points in Shoes and 300 basis points in Gloves and was said to have “gained share to extend its leadership in golf outerwear”.
For 2004, the division is estimating low- to mid-single-digit growth in operating income before charges.
