Positive signs

The race is definitely on. Fortune Brands (NYSE: ELY) reported first quarter sales for its Acushnet Company (Titleist, FootJoy, Cobra, Pinnacle) at $338.9 million, a 20 percent increase over the first quarter of 2003. Fortune Brands said Acushnet's operating income in the quarter rose a staggering 56 percent to $51 million.

Neither Fortune Brands nor the Acushnet Company breaks down its numbers by category. Acushnet's sales figure is below that of Callaway Golf Company, which on April 22 reported its sales at $363.7 million. Acushnet's bottom line, however, exceeded Callaway's reported earnings of $40.5 million.

The sales and earnings figures of Acushnet and Callaway Golf _ the world's largest golf companies -- could indicate that the golf industry is coming out of its economic doldrums of the past years. But as Callaway Chairman Ron Drapeau told Wall Street analysts on April 22, "One quarter does not a year make,'' so the jury remains out on whether or not the golf equipment industry is on the rebound.

Given that the second quarter is generally the strongest one for equipment companies, it does appear, however, that the industry is pointed in the right direction.

Copyright 2004 by PGA.com. All rights reserved.