Carlsbad-Based Callaway Golf Announces $21 Million Loss

Carlsbad-based Callaway Golf Co. today announced a loss of $21.1 million, or 32 cents per share, in the third quarter that ended Sept. 30. The company reported a loss of $86.8 million in the third quarter last year. In the first nine months of 2013, the maker of golf equipment and apparel reported earnings of $30.6 million, or 38 cents per share. In the first nine months of 2012, the firm lost $52.2 million, or 91 cents per share.

"Market conditions during the third quarter were better than we had anticipated as we entered the quarter, due in part to improvements in weather and rounds played in both Europe and the Americas,'' said Chip Brewer, Callaway's president and CEO.

"These market conditions, along with continued gains in market share in our major markets and the realization of the benefits from the many actions we have taken over the past year to improve our operations and reduce our costs, have resulted in an increase in sales and operating income,'' Brewer said.

Sales totaling around $715 million through September were about the same as the first three quarters last year, but expenses were much lower, according to Callaway's financial report. The year-to-date performance is evidence that turnaround efforts instituted last year have been effective, but more work is needed to produce acceptable results, Brewer said. He said gains have been made this year despite lower exchange rates for U.S. currency, adverse weather conditions and charges from the sale of the Ben Hogan and Top-Flite brands.

–City News Service