Callaway Golf expects 3Q loss to widen

posted: 39 DAYS 14 HOURS AGO

Text SizeAAA

CARLSBAD, Calif. -Callaway Golf Co. said Thursday it expects its third-quarter loss to widen and sales to fall 11 percent year-over-year as the economic slump continues to pressure consumer spending, but the company said it sees some early signs of a recovery.

The company said it expects to report a loss of 25 cents per share, compared with 12 cents per share for the third quarter a year ago. The loss this year includes 4 cents per share related to the company's preferred stock and 1 cent associated with cost cutting moves.

Analysts surveyed by Thomson Financial expect a smaller loss of 18 cents a share, on average. They typically exclude one-time charges.

Net sales are expected to be $191 million, down 11 percent from $213 million a year ago. The company said that shows an improvement, however, from the first two quarters of this year.

"While the global economic environment has been very challenging for our business this year, there appear to be some positive signs indicating the beginning of a recovery," CEO George Fellows said in a statement.

He said the company has improved market share and cut costs and currency rates are more favorable. He also expects the addition of golf as an Olympic sport in 2016 to have a positive impact on the golf industry globally and in particular in emerging markets such as China, India, and Latin America.

The company plans to release third-quarter results on Oct. 29.

Shares fell 5 cents to close at $8.75. In after-hours trading they tumbled another 35 cents, or 4 percent.

2009-10-15 19:25:18