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Callaway Golf reports $16 million loss in third quarter
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Callaway Golf Company's (NYSE: ELY) continues to struggle with its top and bottom lines, another signal that the equipment industry is still foundering.
Callaway reported third quarter sales of sales of $191 million, a decrease of 11 percent compared to $213 million for the third quarter of 2008. The company also reported a loss of $13.4 million in the quarter versus a loss of $7.4 million the third quarter of '08.
For the first nine months, Callaway reported a sales drop of 19 percent to $765 million compared to $946 million for the same period last year. The company reported a loss of $2.8 million during the nine month compared to earnings of $69,000 the same period a year ago.
Despite the red numbers, Callaway President George Fellows attempted to put a positive spin on the quarter.
“While market conditions have been challenging this year, we have managed our business in such a way that we have gained market share in all club categories, managed our expenses responsibly and invested in a few important growth initiatives that should position Callaway Golf to grow when the economy begins to rebound,” Fellows said. "We are already seeing some improvement in global economic conditions and a lessening of the negative impact of foreign currency exchange rates.
"Furthermore, initial feedback on our 2010 new products has been positive, our supply chain continues to improve, and the many actions we’ve taken this year, together with our increased market share base, should position us to generate a meaningful turnaround and return to profitability next year.”
