Loss Narrows at Callaway

Sales rise 7%.
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Callaway's

(ELY) - Get Report

fourth-quarter loss narrowed on a 7% rise in sales.

The golf club maker lost $18.7 million, or 27 cents a share, in the quarter, compared with a loss of $28.5 million, or 42 cents a share, last year. Sales were $154.4 million, up from $144.4 million a year ago.

The latest quarter had a charge of 5 cents a share for restructuring and a business integration. Analysts had been forecasting a loss of 23 cents a share on sales of $159.8 million in the latest quarter, according to Thomson First Call.

"While earnings ... improved significantly, they are still not at desired levels. As we announced at the end of the third quarter, however, we have already implemented several companywide initiatives designed to reduce expenses and improve profitability. We have already started to see the benefits of such initiatives as operating expenses in the fourth quarter decreased as compared to the fourth quarter of 2004.

"We believe we are in a good position entering 2006. We have several new products being introduced, and the initial response from our customers has been very positive. We also expect to continue to realize the benefits of the cost reduction initiatives we implemented in September and we believe we have resolved the supply constraint issues we experienced last year with some products. Our focus in 2006 is to strengthen our marketing programs and enhance customer service, particularly regarding on time delivery of new products in our effort to improve our position in the marketplace and grow profitability."

The stock closed at $14.66 Wednesday.