CARLSBAD, Calif. (Jan. 5)—Golf ball and club manufacturer Callaway Golf Co. expects net sales of $810 million and diluted earnings per share of between 65 and 67 cents for 2003.
The earnings estimate includes a positive effect of about 5 cents per share attributable to a lower-than-usual effective tax rate for the year, the Carlsbad-based company said. But the estimate also includes a negative effect on earnings of about 23 cents per share attributable to charges—primarily non-cash—expected to be taken in the fourth quarter in connection with the integration of Callaway Golf and Top-Flite Golf Co. operations.
Callaway acquired Top-Flite out of bankruptcy last fall for $174.4 million, making it the No. 2 golf ball manufacturer in the world behind Titleist Co. Top-Flite reported $250 million in sales in 2002.
For 2004, Callaway's current guidance is that consolidated net sales will be about $1.03 billion, a 27-percent increase over 2003 estimates, the company said.