Callaway Golf Company (NYSE:ELY) has announced that, based on current information, the Company estimates net sales for the quarter ended 30th June 2005 of approximately $323 million, with corresponding earnings per diluted share ranging from $0.25 to $0.27. Excluding integration charges of approximately $0.03 per diluted share associated with the consolidation of the Top-Flite and Callaway Golf operations, pro forma earnings per diluted share are estimated to range from $0.28 to $0.30.
The Company reports that it is continuing to see steady improvements in its business this year. Preliminary results suggest that the second quarter will generate growth in sales compared with both the second quarter of 2004 and the first quarter of 2005, although earnings growth will be tempered by planned spending increases related to brand investment and third quarter product launches. The Company is experiencing stronger demand and sell-through at retail for its current products versus last year, and does not anticipate discounting issues in the second half of 2005 similar to those faced in 2004. As a result, the Company expects significant year over year improvements in third quarter earnings.
The Company will release actual second quarter financial results on 21st July.
Callaway Golf Company www.callawaygolf.com