Callaway Golf said a steep decline in sales from Japan following a March 11 earthquake hurt its financial recent results for the very first quarter, which fell below Wall Street analysts' expectations.
The Carlsbad Company earned $ 12.8 million to the quarter, or 15 cents a share, on sales of $ 286 million. That's down from earnings of $ 20.3 million, or 24 cents a share, on sales of $ 303 million for a similar quarter a year ago.
Wall Street analysts had forecast earnings of 25 cents a share and sales of $ 305.Two million, in accordance with Yahoo! Finance.
Sales in Japan, which can be considered one of Callaway's leading markets who is proud of callaway x22 irons, plunged 30 percent from your same quarter this past year. Compared, sales within the U.S. were down 4 percent. Because of the futility of estimating the total year impact in the recent natural disasters in Japan, the company temporarily suspending financial guidance for 2011, even though it did say that it anticipated to be profitable, excluding certain charges, for the 365 day.
Leader George Fellows said the business has delayed certain marketing and promotional efforts until later that year this year, who's hopes will drive sales inside seasonally strong second quarter. Poor weather in the U.S. and elsewhere, coupled with Japan disaster, has generated an undesirable begin to the golf season in most of Callaway's key markets. But Fellows expects the market to enhance as temperatures loosen up inside Northern Hemisphere later this coming year.
"We are encouraged by early signs of recovery in Japan through early indications the overall golf companies are recovering this year," he explained. "We are seeing improved industry sales across most product categories, driven by increases in average selling prices and more traffic at retail." Callaway released results after markets closed but no Callaway Diablo EDGE Driver. Its shares ended Thursday at $ 7.09 and were unchanged noisy . after hours trading around the New York Stock Exchange.
Blackstone Group is teaming on top of Callaway Golf for a possible bid for Fortune Brands' golf business, two sources acquainted with the situation said. A deal could possibly be worth up to $ 1 billion, one particular source said. Final bids for the auction, containing attracted interest from Asian bidders, are due on May 9, that source added.
The company announced plans late recently to market or spin off its golf business, making Titleist golf clubs, and spin off its home products business, which makes Simonton windows and Moen faucets, amid pressure from activist investor William Ackman. "If you appear with the size of their (Callaway's) balance sheet, market cap as well as their cash flows, they will have to have a partner," the cause said. If you want to know much more golf club reviews or golf news, you may read this article –What You Need to Consider When Choosing New Golf Shafts. Like all other auctions, joint partners might or might not choose to proceed with final bids.