Callaway Golf Company expects net sales for 2008 to slip 0.7% to $1.12 billion from $1.13 billion in 2007. Consistent with recent earnings guidance, pro forma diluted earnings per share for 2008 are estimated to range from 93 cents to 95 cents a share, an increase of approximately 6% compared to pro forma diluted earnings per share of 89 cents in 2007.
Pro forma earnings results for 2008 exclude a non-cash, non-operational after-tax benefit of 22 cents per share related to the reversal of a $19.9 million energy derivative valuation account established in 2001 in connection with the companys termination of a long-term energy supply contract. Pro forma results for 2008 and 2007 also exclude charges related to the companys gross margin initiatives of 12 cents per share and 8 cents per share, respectively. Including these benefits and charges, reported earnings for 2008 are estimated to range from $1.03 to $1.05 per share, compared to 81 cents per share for 2007.
