FAIRHAVEN – The Acushnet Co., maker of golf apparel and equipment, closed out the year on an upswing, according to parent Fortune Brand’s year-end financial report, released Friday.
The manufacturer reported $226.9 million in revenue in its fourth quarter, an increase of 6.9 percent, although its operating loss grew from $18.3 million in 2008 to $37.3 million last year. Part of the increase in operating loss was due to one-time restructuring-related charges totaling $10.6 million. The maker of Cobra, FootJoy, Pinnacle and Titleist golf apparel, balls, clubs and shoes disclosed that sales excluding exchange rate gains increased 2 percent in the quarter.
Despite the weak fourth quarter – traditionally the slowest in sales for the golf industry – Acushnet turned an operating profit in 2009 of $25 million, a decline of 80 percent from 2008’s operating income of $125.3 million (total 2009 restructuring charges were $35.2 million). The market leader in golf ball and golf shoe sales did see an 11 percent sales decline on the year, however, to $1.22 billion from $1.37 billion.
Acushnet parent Fortune Brands, based outside Chicago, recorded 2009 net income of $247.1 million, an increase of 0.7 percent, on net sales of $6.69 billion, which declined 12 percent from 2008. Earnings per diluted share for the year totaled $1.60, a decline of 20.8 percent.
Fortune Brands Chairman and Chief Executive Officer Bruce Carbonari said in a statement that “double-digit sales increases for Titleist golf balls and FootJoy shoes, along with strong growth in Asia, helped our golf brands outperform the market.”
As of 3:19 p.m. Friday, Fortune Brands stock had fallen $1.10 to $42.28 in trading on the New York Stock Exchange.
Carbonari cautioned against too much optimism for consumer spending in 2010, setting the EPS range at $2.30 to $2.80 before charges or gains.
Additional information is available at Acushnet Co..
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