Wins Not Equaling Sales

2008-11-13

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According to the Wall Street Golf Report, graphite shaft manufacturer Aldila recently reported net sales of $11.8 million in the quarter ending September 30, which generated a net loss of $1.1 million. During that same period in 2007, it had net sales of $13.2 million and a net profit of $687,000. Golf shaft sales declined five percent in the third quarter of 2008 compared to the third quarter in 2007. The average selling price decreased by two percent of the company’s golf shafts and Aldila experienced a three percent decline in unit sales during the reporting period.

"The golf market continues to deteriorate driven by global economic conditions," said Peter Mathewson, Chairman of the Board and CEO. "With this negative back drop, our modest declines in sales, average selling price and units sold were not near as severe as what we experienced in the second quarter of this year.”

For the first nine months of 2008, Aldila had net sales of $42.1 million that produced a net loss of $1.2 million. A year ago it generated $51.5 million in sales and net income of $5.0 million.

Despite the weaker financial performance, Mathewson notes that 2008 has been a great year for Aldila on Tour — players using Aldila shafts have won 13 events on the PGA Tour, 13 events on the Nationwide Tour, 15 events on the Champions Tour and 20 events on the LPGA Tour.