Callaway Golf Company said it expects second quarter earnings to come in a range of 10 cents to 15 cents a share versus 10 cents a year ago. Sales are expected to reach in the range of $295 to $305 million versus $302 million a year ago.
Analysts polled by Thomson Reuters forecast profit of 33 cents per share
on revenue of $328.2 million. Analyst estimates typically exclude
one-time items.
Charges in the second quarter were one cents a share related to the company's global operations strategy versus charges of two cents a year ago.
“As we discussed throughout the year, 2010 will be the first step for the golf industry and the Company toward a full recovery from the recent global economic crisis,” commented George Fellows, president and chief executive officer. “The pace of the recovery is affected by the stabilization of the worldwide economies and the recovery of consumer discretionary spending on durable products. Based upon current trends, however, it appears that the recovery will be slower than we had expected. The increased economic and political instability in Asia and Europe, the tentative nature of consumer spending so far this year in the United States, and unfavorable weather conditions in many of the company's key markets this year, are all factors slowing the pace of the recovery.”
“While our full year results will show less improvement than we initially forecasted, we remain confident that we will return the Company to profitability in 2010 and remain confident in our longer-term prospects as well,” continued Fellows. “Our brand continues to be strong worldwide. Our global operations strategy continues to deliver significant savings and increased flexibility in our supply chain, allowing us to adjust to changing market conditions very efficiently. Our apparel and accessories businesses continue to grow, and our international market expansion is ahead of schedule and will benefit from the inclusion of golf in the Olympics. Inventories at retail as well as our own inventories are reasonable and our liquidity and balance sheet are sound. These factors will be even more important as economic conditions improve and the recovery continues.”
