Callaway Golf Co. said it expects second quarter diluted earnings per share to range from 56 cents to 58 cents a share, an increase of approximately 8% compared to 53 cents earned in the second quarter of 2007. These results include after-tax charges of 5 cents a share in 2008 and 2 cents a share in 2007 associated with the gross margin initiatives announced in November 2006. Sales are expected to fall 3.7% to $366 million from $380 million in 2007.
Diluted earnings per share for the first half of 2008 are estimated to range from $1.17 to $1.19, an increase of approximately 17% versus $1.01 in the first half of 2007. These results include after-tax charges associated with the gross margin improvement initiatives of 6 cents and 3 cents per share for 2008 and 2007, respectively. Net sales for the period are estimated at $732 million, an increase of 2% over 2007 sales of $715 million.
Business Update
“In spite of a very challenging economic environment in the
Business Outlook
The company reiterates its full year guidance of $1.145 to $1.165 billion in revenue and pro forma fully diluted earnings per share of $1.08 to $1.18 per share, excluding estimated charges of approximately 8 cents per share for the companys gross margin initiatives, again noting that it expects full year earnings will be at the lower end of the estimated range.