Carlsbad-based Callaway Golf Co. on Thursday reported net income of $16 million in 2014, or 20 cents per share, compared to a net loss of $19 million, or 31 cents per share, in the prior year.
The turnaround comes despite a fourth quarter net loss of $42 million, or 54 cents per share, compared to a net loss of $49 million, or 65 cents per share, in the same period of 2013.
“Notwithstanding challenging market conditions for the golf industry as a whole, we were able to grow sales, increase our market share and return to profitability for the first time since 2008 — a significant milestone for us in our turnaround,” said Callaway President and CEO Chip Brewer.
“Our return to profitability has clearly benefited from the many actions we have taken during the last few years to improve our operating efficiencies,” he said.
Brewer said that while weakening foreign currencies could reduce sales by 1 to 4 percent, the strong performance overall should continue this year.
“Golf is a momentum business and fortunately momentum is now on our side,” Brewer said.
Data provided by Callaway said the company’s net sales increased by $44 million last year to $887 million, while operating expenses were relatively flat.
Callaway struggled from the impact of the recession. Brewer was hired three years ago, and subsequently sold off the Top Flite and Ben Hogan brands, licensed footwear and apparel products, and restructured the company’s sales force.
— City News Service