* Says cut 7 pct jobs last week
* Sees restructuring benefits in H2 2011
* Q2 adj loss/shr $0.01 vs est loss/shr $0.02
* Q2 rev $274 mln vs est $270.1 mln
* Sees loss in FY11
July 26 Golf gear maker Callaway Golf Co
, which posted a narrower-than-expected quarterly loss,
said it has started cutting jobs, and expects to post a
The Carlsbad, California-based company said it has begun its
restructuring plan, including the elimination last week of about
7 percent of positions globally, and expects to see the benefits
in the second half of the year.
Callaway said it will reinvest up to half of the $50 million
of annual savings it expects from the restructuring process in
demand creation initiatives.
The company has reported losses over the past two years as a
rebound in the U.S. golfing industry didn't pan out as it had
U.S. golfers had scaled back spending on the pricey sport
during the recession and many had expected a recovery last year
-- but things didn't go according to plan, forcing the company
to cut costs and restructure its business.
The company expects $15-$20 million pre-tax charges related
to the restructuring, including $5 million recognized in the
The company, which said in June it would cut jobs as it
tries to save money, posted a net loss of $63.6 million for the
second quarter, or $1.03 per share, compared with a net income
of $11.5 million, or 14 cents per share, last year.
Excluding items, the company posted a loss of 1 cent per
share, while analysts on average had expected a loss of 2 cents
per share, according to Thomson Reuters I/B/E/S.
Second-quarter revenue was $274 million, compared with
analysts' expectations of $270.1 million.
Callaway shares closed at $6.53 on Tuesday on the New York
(Reporting by Eileen Anupa Soreng in Bangalore; Editing by Viraj