Global Edition

Callaway Preliminary First Quarter 2010 Results

9.20am 19th April 2010 - Corporate - This story was updated on Monday, April 19th, 2010

George Fellows, President & CEO Callaway Golf

George FellowsCallaway Golf Company (NYSE:ELY) has announced its preliminary financial results for the first quarter of 2010.

  • Net sales are estimated to be $303 million, an increase of 11% as compared to net sales of $272 million for the first quarter of 2009.
  • Changes in foreign currency exchange rates favorably affected 2010 net sales by approximately $15 million. On a currency neutral basis (i.e. translating the Company’s first quarter 2010 results at first quarter 2009 exchange rates), estimated net sales would be $288 million, an increase of 6% compared to the first quarter of 2009.
  • Gross profit is estimated to be $137 million, or 45% of net sales, compared to gross profit of $116 million, or 43% of net sales, for the first quarter of 2009.
  • Operating expenses for the quarter are estimated to be $109 million, compared to $103 million for the first quarter of 2009.
  • Earnings per diluted share are estimated to be approximately $0.24 (on 83.9 million diluted shares outstanding). For the first quarter of  2009, the Company reported fully diluted earnings per share of $0.11 (on 63.3 million diluted shares outstanding). Both periods include after-tax charges of approximately $0.01 per share related to the Company’s global operations strategy targeted at improved gross margins.

“Our first quarter results reflect the improving economic conditions and the benefits of our continued investment in geographic expansion and our global operations strategy, as well as improvement in foreign currency exchange rates compared to last year,” commented George Fellows, President and Chief Executive Officer.

“Although poor weather conditions have delayed the opening of the golf season in many of our key markets and tempered our first quarter sales, we believe that golf spending will increase as weather conditions improve and the golf season opens.”

“Overall, we remain cautiously optimistic for 2010,” continued Mr. Fellows. “The pervasive discounting that occurred in 2009 has subsided, retail inventory levels are healthy, and we have received positive consumer feedback on our 2010 product line buoyed by strong performance of these products on the various professional tours around the world. Although these and other factors support our optimism, it is important to remember that the second quarter is generally when the consumer purchase cycle peaks and it is a critical quarter for us in achieving our full year targets.”

The Company will release actual first quarter financial results on 29 April 2010.

Callaway Golf


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