True Temper Sports first quarter sales dropped 48.5% to $18.4 million from $35.8 million in the 2008 comparable period. The company, which manufactures steel and graphite shafts for golf clubs, bicycles and hockey, recorded a net loss of $11.5 million for the first quarter compared to a net loss of $1.6 million the first quarter of 2008. Management said declining sales came primarily from a decrease in the unit volume of premium golf shafts due to tightened spending from consumers.


Inventory levels were $30.0 million, relatively flat as compared to last year’s first quarter.


By segment, the company’s Performance Sports business, which consists of high strength tubular components for the bicycle and hockey markets, among others, made up about 22% of total sales, with Golf Shafts accounting for the remainder. Last year, the Performance Sports segment accounted for about 11% of sales.


Management said earnings for the quarter were “clearly at an unacceptable level” and added they were taking a “very aggressive approach” to costs and cash management.


Regarding outlook, the company said weaker retail sales and continued reduction in channel inventory would likely have adverse affects on results. Objective for the near future key on reducing variable costs in line with unit sales volume and “to aggressively attack (the) fixed-cost infrastructure to remove any expenditures that are not absolutely necessary.”