Jan
27
2012
Ouch! Callaway Posts Mammoth 2011 Loss
By Conor Nagle under Equipment

"Shareholders, our fate is in the hands of this man..."

Equipment manufacturer Callaway Golf has closed out a dismal 2011 by releasing its fourth-quarter financial results.

The company, based in Carlsbad, California, recorded losses of $24 million in the final months of last year, contributing to an overall decline in year-on-year revenue of nearly $80 million and loss of approximately $30 million.

Mike Freeman of the U-T San Diego has the details:

“The golf equipment maker said it lost 41 cents a share in the quarter, excluding certain charges, compared with a 40 cent per-share loss for the same quarter last year. Sales were $154 million, down from $186 million.

For the full year, revenue fell to $887 million versus $968 million the previous year. The company reported a loss of $30 million, or 63 cents a share, excluding certain charges. In 2010, Callaway lost $5 million, or 24 cents a share.”

Buoyed by a reinvigorated sales strategy and steamlining of operating costs, the company anticipates recording a modest recovery in the first half of 2012.

Conor Nagle