UPDATE 1-Callaway Golf cuts dividend, reiterates '09 view

* Cuts dividend by $0.06/shr

* Sees Q2 earnings similar to those achieved in Q1

* Sees earnings in second half '09 better than last year

* Announces $110 mln private offering

June 8 (Reuters) - Callaway Golf Co (ELY.N) said it would reduce its second-quarter dividend by 85 percent to improve its cash position, and reiterated its full year outlook.

The company cut its dividend to 1 cent a share, adding that the reduction will allow it to retain an additional $15.2 million in cash annually.

"The macroeconomic and foreign currency headwinds that negatively impacted the first quarter continue to impact our second quarter," CEO George Fellows said in a statement.

Callaway, however, said second-quarter earnings are estimated to be similar to those achieved in the first quarter.

Earnings in the second half of the year are estimated to be higher than last year due to less foreign currency headwinds, benefits associated with Callaways's cost reduction initiatives and improving economic conditions.