True Temper Sports reported that net sales for the third quarter decreased 13.6% to $21.3 million from the $24.7 million in sales in Q3 2003. Gross margin declined 470 basis points to 39.3% of sales from 44.0% of sales in the year-ago period. Net income fell 67.5% to $748,000 from $2.3 million in the third quarter of last year.

Sales of Golf Shafts were down 14.1% in the quarter to $20.0 million, compared to $23.3 million in last year’s third quarter. Gross margins were to 40.1% of sales in the period, down 490 basis points from the 45.0% gross margin in Q3 last year. Sales in the Performance Sports category declined 5.7% to $1.3 million from $1.3 million in the year-ago quarter. Gross margin here was up 70 basis points to 27.0% of sales versus 26.3% in Q3 last year.

The company now expects 2004 full year revenue to be down approximately the same percentage as the nine-month YTD level, which was down 13.4% versus the comparable period last year. They appeared to be a bit more optimistic about 2005.