Acushnet expects the global golf market to be down by 12 percent to 15 percent for 2009, but this company, which is Fortune Brands’ golf division, should do better. In the third quarter, it had a 9.5 percent drop in sales to $278.6 million in the third quarter, or a 7 percent drop on a currency-neutral basis. The operating income plunged by 59.6 percent to $9.7 million. Before charges, it was a drop of 57.9 percent to $10.1 million.
In constant currencies, sales were up in the double digits in Europe, Korea and Australia for a rise of 10 percent outside the domestic market. In the U.S., however, sales fell in the double digits. This was blamed on the economy and its effect on businesses, as corporate spending on golf has been cut back.
Golf ball sales fell in the double digits as there were fewer customer orders and poor sales of balls below the Pro V level. The company said that the Pro V1 family of balls had gained 2 percentage points of market share in the U.S. in 2009, through August.
Revenues from Titleist and Cobra golf clubs rose outside the U.S., partially offsetting a drop in the domestic market. In constant currencies, the overall drop was modest. Sales of Titleist irons dropped as Acushnet is getting ready to launch its latest AP1 and AP2 irons and new CB and MB irons. Vokey Design wedges and the 909 Series of Titleist clubs had good results. Cobra clubs overall remained stagnant.
Acushnet’s FootJoy shoes had a slight uptick in sales in constant currencies, with a boost from new styles and good performance outside the U.S. Gloves and accessories saw a small drop.
For the fourth quarter, Acushnet expects a loss larger than last year’s, when its 909 Series was launched. Currency effects are expected to cost the company $20-25 million for the period.
