True Temper Sports, Inc. reported net sales for the second quarter decreased to $25.3 million from $32.5 million during the second quarter of 2003. Net income for the second quarter decreased to $1.7 million from $3.8 million in the second quarter of last year. Adjusted EBITDA for the second quarter decreased to $7.8 million in 2004 from $11.2 million in 2003.
The company said that retail golf equipment sales appear to be somewhat stable in units, but there are indications that shipments of certain products into the retail market have declined and many products are being discounted to clear the existing inventory at retail. Company president and CEO Scott Hennessy said that the decline of shipments into retail is indicative of an overall shortage of major new club introductions in the first half.
TRUE also said they have seen a temporary shift in the product mix of Trues premium steel shafts, causing a “slight decrease” in average unit selling prices, and a decline in graphite shaft unit sales as the Woods category for some of their major OEM partners weakened at retail during the Spring.
“We have implemented major cost reduction and containment plans across all locations to reduce both the variable and fixed cost elements of our business, and improve cash flow,” said Hennesey.