Aldila Inc. (ALDA:NASDAQ) one of the golf industry's leading manufacturers of graphite golf shafts used in clubs assembled and marketed throughout the world by several major golf club companies, component distributors and custom clubmakers announced its first quarter financial results. The company had net sales of $14.6 million and matching net income of $988,000 for the first quarter ended March 31, 2001. The financial results compare to net sales of $16.7 million and net income of $580,000 (after recovery of $340,000 after tax of plant consolidation charges previously recorded) for the comparable quarter in 2000.
"Aldila's first quarter sales, while down from the first quarter of 2000, are in line with our expectations. The first two quarters of 2000 were exceptionally strong as the industry emerged from the down turn of late 1998 and 1999, and they make for a tough comparison this year," stated Peter R. Mathewson, chairman of the board and chief executive officer. "Although the average selling price of a golf shaft in the first quarter increased 13 percent over the same period last year, unit volume was 24 percent lower this year," Mathewson continued. The CEO offered additional startling evidence, along with the decrease in unit volume, that in the near term presents his company with further challenges. "The incoming order rate in the first quarter of 2001 was 47 percent lower than in the comparable 2000 quarter, suggesting unseasonably weak second quarter sales as customers evaluate sell-through at the retail level and try to gauge the impact of the slowing U.S. economy. Golf club companies are taking a more cautious and prudent approach to inventory control to avoid repeating the 1998-1999 over-inventory situation," Mathewson stated.
