Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Dan Wewer - Raymond James.
Dan Wewer - Raymond James
Two questions; George first, with the enterprise value of Callaway now at the lowest point in 10 years, are you or any members of the board concerned about the company possibly becoming an attractive unwanted acquisition for someone else?
George Fellows
It’s very hard to comment on hypotheticals like that. The fact is that we are taking all of the right steps in order to control our costs, so there is no easy money on the table for somebody coming over the transom, but again it’s very hard to predict anything like that and conjecture doesn’t help.
Dan Wewer - Raymond James
Second question, in terms of the market share of growth and with 2% to 3% in woods and irons, but in prior calls you noted that the industry might drop 15% to 20%, during 2009 and yet we are seeing revenues year-to-date, and irons off 30% and woods off 23% . So its trying that how do we square those significant declines in revenues year-over-year with this forecast of market share growth?
Brad Holiday
There are two fundamentals issues; one is consumer takeaway, which is the 15% to 20% that we were talking about and the second is a fairly large inventory adjust that most of the trade has been taking and will continue to take through the balance of the year.
So when you add those two up, you end up with a market drop if you look at it from the perspective of the manufacture far, far in excess of the 15% to 20%, you’re looking at reductions probably more in the neighborhood of 30% to 35%.
You add to that also, some of the numbers that we are talking about are obviously worldwide numbers, and there is a fairly significant FX affect on that as it relates to the international business and that complicates the calculation even further.
Operator
Your next question comes from Rick Nelson - Stevens Inc.
Rick Nelson - Stevens Inc.
I was kind of wondering if you could comment on inventory levels, both at Callaway and as you see them in the retail channel, and as corollary to that how you saw yourself in the promotional environment as we enter the third quarter, I didn’t recognize things were very promotional in 2Q. Are those promotions accelerating?
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