Partly favored by positive weather conditions and by the weakness of the dollar, Callaway Golf Co. registered a strong 40.3 percent sales increase in Europe to $41.0 million in the 3rd quarter, contributing to a 25 percent increase in the first nine months of the year for the region to $167.3 million. Quarterly sales grew by 20 percent in the USA, by 8 percent in Japan, by 12 percent in the rest of Asia and by 24 percent in the rest of the world.
The management sees Callaway winning market shares in the USA and in the UK in both woods and irons. New products have been very well received in Europe.
The net result for the quarter was a net profit of $1,269,000, against a loss of $11,916,000 in the year-ago period, on a 22 percent increase in sales to $235.5 million. Sales grew across all categories except putters, with wood sales increasing by 29 percent to $56.2 million; iron sales by 23 percent to $65.4 million; balls by 15 percent to $49.0 million; and accessories by 38 percent to $43.3 million. Putter sales dropped by 6 percent to $21.6 million.
The club operation saw pre-tax profits of $16.7 million, but the ball operation saw a loss to $2.8 million. Callaway plans to announce higher financial targets for next year.
