Callaway Golf Co. Reports Strong First-Quarter Income

CARLSBAD, CA: Carlsbad-based Callaway Golf Co. on Wednesday reported first quarter net income of $38.4 million, or 40 cents per diluted share, compared to $35.8 million, or 39 cents per diluted share, in the same period last year.

The improvement came despite a $10 million drop in net sales to $274.1 million, which the company said was expected because of the timing of product launches. The decline was offset by lower expenses.

"The first quarter of 2016 was a strong start to the year for Callaway Golf and we are encouraged by how our business is trending," said President and CEO Chip Brewer.

"We are seeing sustained improvements in market dynamics, including less promotional activity and higher average selling prices," Brewer said. "We are also steadily improving our profitability via operational improvements and our brand momentum by maintaining our leadership position in the club category while building share in our golf ball business, which presents an excellent growth opportunity."

The company also received a boost when two representatives in the pro tours won major tournaments: Danny Willett was victorious at the Masters and Lydia Ko took the ANA Inspiration.

City News Service

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