Global Edition

Callaway Golf results for Third Quarter 2006

7.45am 6th November 2006 - Corporate

Callaway Golf Company (NYSE:ELY) has announced its financial results for the third quarter, ended September 30, 2006, in line with earlier estimates. Highlights for the third quarter include:

Highlights for the first nine months include:

“We continue to make progress on many fronts this year, despite the disappointing performance in our Top-Flite brand,” commented George Fellows, president and CEO. “Sales of our core brands of Callaway and Odyssey have grown significantly this year and we have materially reduced our operating expenses as a result of last September’s cost cutting initiatives. More importantly, these factors should combine to increase our full year pro forma earnings per share by more than 20% in 2006. In addition, we have strengthened the management team, made several internal process improvements, and today on our earnings call, will share a series of initiatives focused on improving gross margins by an estimated $50 to $60 million over the next two years. Ultimately, these actions along with future initiatives should continue the progress we‘ve made-to-date towards our three year plan and position Callaway to create additional value for shareholders.”
Callaway Golf www.callawaygolf.com

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