Aldila, Inc. saw sales decrease for both the fourth quarter and the full year, with the bottom line following suit. “Golf equipment sales as a whole were relatively weak in 2006, with driver club units down the most of any category,” said Peter Mathewson, chairman and CEO, on a conference call with analysts.
For the fourth quarter, the company reported that net sales dipped slightly to $17.9 million for the fourth quarter from $18.0 million in the year-ago period. Earnings were halved to $1.3 million, or 24 cents a share, from $2.7 million, or 48 cents, a year ago.
For the full year, sales were down 6.0% to $72.4 million from $77.0 million in 2005. Net income decreased 16.2% to $11.2 million, or $2.01 per share, from $13.4 million, or $2.46 per share, in 2005.
The company reported its average selling price of golf shafts declined 12% in the quarter, while units sold increased 14%. Branded golf shaft sales decreased by 17% and co-branded sales declined 75% in the quarter and together represented 39% of golf shaft sales compared to 68% in the comparable quarter last year. OEM stock type golf shaft sales in the quarter increased 93% on an 83% increase in units.
For the full year, average selling price of golf shafts declined by 6% and overall units declined by 4%. Branded golf shaft sales declined by 19% and co-branded sales fell by 44%. OEM stock type shaft sales increased by 16% and units increased by 11% for the year.
The composite materials business grew 20% year over year, while hockey was said to have declined in the fourth quarter, but was up for the year.
On a bright note, NV iron sales increased over 47% over 2005, with managements saying that 2007 was off to a “very good start.”
