Callaway Golf is guardedly predicting revenues of $906 million for 2001, but results from the first quarter of this year show the company on track to have sales of $1 billion.
Callaway sales for the quarter ended March 31 were $261.4 million, up 32 percent from the $197.4 million the company earned in the first quarter of 2000. A strong second quarter could give Callaway enough momentum to crest $1 billion, even if sales flag in the third and fourth quarters.
Even so, Callaways forecasts remain conservative. New Securities & Exchange Commission regulations allow companies to make predictions about future performance, and Callaway took advantage of them to look ahead in an earnings statement that came out Wednesday afternoon. Among other predictions, Callaway foresees earnings per share of $1.54 for the year.
Callaway will continue to rely on strong metalwood sales this year, especially the ERC II, the thin-faced driver that exceeds the U.S. Golf Associations protocol on spring-like effect, and the Hawk Eye VFT drivers and fairway woods. And on May 1, the company will add two new golf ball models, the CB1 Red and CB1 Blue, to the two Rule 35 models it introduced in 2000.
Here are highlights from the first quarter report:
Metalwood sales increased more than 55 percent from the first quarter of 2000, from $100.8 million to $156.6 million
Ball sales more than doubled compared to the first quarter of 2000, jumping from $6 million to $12.1 million
Domestic sales were up more than 21 percent versus Q1 2000, from $118.1 million to $142.5 million
Overseas sales increased more than 32 percent against the Q1 2000 figure, from $88.5 million to $116.4 million. Much of the increase came form Japanese sales.
Net income per share for the latest quarter was 47 cents. It was 17 cents for the first quarter of 2000.