Aldila, Inc. reported second quarter losses widened on declining sales that suffered from a 21% decline in golf shaft sales. The golf shaft specialist reported net sales fell 22.5% to $10.6 million from $13.6 million in the year-ago period. Net loss was $627,000, or 12 cents, compared to a loss of $523,000, or 10 cents per share, in the second quarter of last year.


The impact of a 21% decline in golf shaft sales was compounded by average selling prices that slipped 6% and a 16% decline in unit sales versus the prior year’s quarter.  Aldila’s composite material’s division sales declined 32%.


Aldila chairman and CEO Peter Mathewson, who estimated that the golf club market had shrunk 20% to 30%, said that Aldila had implemented several cost-cutting measures in the second quarter, and noted that the company has reduced SG&A by 24.5% compared to the comparable period a year ago.


Mathewson said the company was actively managing its working capital and has increased its cash and cash equivalents by $680,000 as of June 30, 2009 from December 31, 2008, while reducing its total outstanding debt by $3.1 million during that same period. Backlog as of June 30, 2009 was $6.8 million, down 12% versus the second quarter of 2008.