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By
Steve Pike, PGA.com Senior Writer
04.30.2004
02:06 pm (ET)
Graphite shaft manufacturer Aldila Inc. (NASDAQ: ALDA) reported its first quarter sales increased to $15.3 million from $10.2 million the same period a year ago. The company also reported earnings in the quarter of $2.3 million versus a loss of $169,000 the first quarter of 2003.
Aldila Chairman Peter Mathewson said his company’s first quarter sales were driven by the success of its flagship NV wood shaft line.
"The success of the NV wood shaft line has opened the door to a multitude of new accounts which broadens our already large customer base," Mathewson said.
Aldila, based in San Diego, is the second golf equipment component company to report increased sales and earnings in the first quarter. Coastcast Inc. (OTCBB: COCA), which makes club heads for most of the major golf club companies, reported it first quarter sales increased to $16.3 million compared to $10.7 million the same quarter a year ago, with earnings of $671,000 in the quarter versus a loss of $2.7 million the first quarter of ’03.
Those two companies’ first quarter reports, coupled with increased sales and earnings numbers from equipment giants Acushnet (Titleist, FootJoy, Cobra, Pinnacle) and Callaway Golf (NYSE: ELY), help raise hopes that the equipment industry is climbing out of its years-long recession. A more clear answer won’t be known for several months, however, as to whether or not the industry is regaining its economic health or if big companies such as Acushnet and Callaway are growing simply by taking market share away from smaller players.
One more piece of that puzzle is expected on May 5 when German sporting goods giant adidas-Salomon A.G. reports the first quarter numbers for its TaylorMade-adidas Golf Company. TMaG is the world’s third-largest golf equipment company, behind Acushnet and Callaway. With Acushnet and Callaway each reporting increased sales in their club businesses in the first quarter, it will be interesting to see if some of those increases were at TMaG’s expense.
Copyright 2004 by PGA.com. All rights reserved.
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