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More supporting evidence came in that the golf business is becoming a harder and harder place to make money. Graphite shaft manufacturer, Aldila, Inc. (ALDA: NASDAQ) reported net sales of $10.6 million in the second quarter of 2009, which generated a net loss of $627,000 ($0.12 loss per share). Flash back to a year ago and the company had sales of $13.6 million and a loss of $523,000.
For the six months ended June 30, 2009, net sales were $24.4 million, down from $30.3 million a year ago. In the first six months of 2009, Aldila has lost $675,000 compared to losing $65,000 during the same period in 2008.
"The Company is actively managing its working capital and has increased its cash and cash equivalents by $680,000 as of June 30, 2009 from December 31, 2008, while reducing its total outstanding debt by $3.1 million during that same period,” said Peter Mathewson, Chairman of the Board & CEO. "We experienced a 21% decline in our golf shaft sales in the second quarter of 2009 versus the second quarter of 2008. The average selling price of our golf shafts sold decreased by 6% on a 16% decline in unit sales in the second quarter of 2009 versus the second quarter 2008. We continued to see a very difficult market throughout the quarter. The contraction of the golf club market is estimated to be on the order of 20-30% and there is uncertainty as to when it will return to previous levels.” However, the CEO has some room for optimism.
“We believe our market share remains strong based on the various programs we have been awarded for 2010 product lines set to begin late in the third quarter. Our customers continue to be cautious and take a conservative approach to their business in light of the economic climate," Mathewson said.