FAIRHAVEN – The Acushnet Co., the world’s largest golf equipment and apparel maker, reported significant sales and operating income declines in the first quarter, driven by the global economic crisis, unfavorable exchange rates and restructuring charges.
The company – a division of Deerfield, Ill.-based Fortune Brands Inc. and comprised of the Cobra, FootJoy, Pinnacle and Titleist brands – posted net sales in the three months ended March 31 of $347 million, a decline of 12.5 percent from its 2008 first-quarter performance.
Thanks in part to $25.7 million in restructuring and restructuring-related charges, the company reported operating income of $9 million, an 82.5 percent drop from 2008’s $51.5 million.
Fortune Brands Chairman and Chief Executive Officer Bruce Carbonari said in a statement that, “in our golf business, new products, international sales growth in constant currency and lower costs partly offset the impact of reduced consumer discretionary spending, lower corporate custom golf ball orders and adverse foreign exchange.”
The parent company reported net income for the quarter of $8.9 million, a decrease of 93 percent, on net sales of $1.44 billion, a decline of 20.3 percent. Earnings per diluted share fell from 77 cents to 5 cents, below analysts’ consensus estimates of 22 cents per share. However, excluding the 25 cents per share of restructuring charges, the maker of spirits, home products and golf products beat estimates, leading the markets to drive up the company’s share price. At 12:58 p.m., Fortune Brands stock stood at $41.05, an increase of 4.43 percent on the day.
Fortune Brands Inc. (NYSE: FO), a member of the S&P 500 Index and the MCSI World Index, is a leading consumer brands company. Its businesses include the Fairhaven-based Acushnet Co. – a maker of golf equipment and apparel under brands including Cobra, FootJoy, Pinnacle and Titleist – as well as manufacturers and marketers of distilled spirits and home and hardware products. For more information, go to www.FortuneBrands.com or www.AcushnetCompany.com.
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