Callaway Golf Company reported that fourth quarter net sales were $174.4 million, a 3.0% decrease from $179.9 million for the 2006 quarter, which the coampny said had included “significantly more sales from new product launches.” ELY siaw its loss for the period widen considerably to $16.2 million, or a loss of 25 cents per diluted share, compared to a loss of $10.2 million, or 15 cents per diluted share, in the fourth quarter of 2006.
“We have made significant progress improving operations and profitability in 2007,” announced George Fellows, President and CEO. “Specifically, we were able to re-gain woods market share, re-launch the Top-Flite Brand with the successful introduction of the D2 golf ball, and grow our accessories business. In addition, we made significant progress in improving profitability, increasing our gross margins by five percentage points, which contributed to a $135 million increase in cash from operations.”
“While pleased with our progress so far, we continue to focus on improvement,” continued Mr. Fellows. “We have a strong line-up of 2008 products including our recently announced I-Mix driver with its state of the art technology aimed at providing the best and most flexible performance possible for our consumers. Another area we are targeting is supply chain management, where weve made tremendous progress in 2007 but believe there is still room to drive efficiencies. With this strong portfolio of products along with improved operations, we feel well positioned to sustain the momentum we enjoyed in 2007.”
The company estimates that its full year 2008 net sales will be in the range of $1.15 to $1.17 billion. The company also estimates that its 2008 full year pro forma fully diluted earnings per share will be in the range of $1.08 to $1.18, which represents an estimated increase of 21% to 33% as compared to the companys pro forma fully diluted earnings per share in 2007 of $0.89 as discussed above. Estimated pro forma earnings for 2008 exclude estimated charges of approximately 8 cents per share related to the companys gross margin initiatives.