Profits Rise at Callaway Golf

Adjusted earnings of 30 cents a share beat by a penny.
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second-quarter earnings rose 34% from a year ago, beating estimates on strong demand for its golf equipment.

Callaway earned $18.4 million, or 27 cents a share, in the quarter compared with earnings of $13.7 million, or 20 cents a share, a year ago. Adjusted for charges, the company earned $20.4 million, or 30 cents a share, in the quarter, a penny ahead of estimates.

Revenue rose 8% from a year ago to $323.1 million, about $5 million ahead of estimates.

"The company's products were generally well-received at retail and demand for the company's products was strong, exceeding the company's ability to supply some products," Callaway said. The second quarter also included costs related to brand investment and new product launches.

Callaway said it doesn't expect to have "discounting issues in the second half of 2005 similar to those faced in 2004 and as a result anticipates significant year-over-year improvements in third quarter sales and earnings."