In a season that has been largely forgettable for the golf industry as a whole, golf shaft manufacturer Aldila, Inc. reported its fifth consecutive quarter of declining sales, posting revenues of $11.8 million for the third quarter ended Sept. 30, an 11% drop from $13.2 million reported in the year ago period.
The company also reported a net loss of $1.1 million, or 21 cents per diluted share, as compared to a net income of $687,000, or 12 cents per share, in same period of 2007.
Golf shaft sales for the quarter slipped 5% while ASPs for shafts decreased by 2% on a 3% decline in unit sales. Composite materials sales declined 38% as compared to the year ago period as the deteriorating economy slowed new orders from the customer base.
Gross margins for the company, which management noted were significantly affected by lower sales volumes of golf shafts and composite materials, lowers ASPs for shafts, and a shift in mix of shaft sales to lower margin models, fell to 9% as compared to 26% in the year ago period. Also affecting gross margins was Aldilas fall 2007 sale of Carbon Fiber Technology, LLC, which contributed 11.4% to the companys gross profit in the third quarter of 2007l.