Callaway 1998 Annual Report Download - page 5

GREAT BIGBERTHA
AWK YE
TITANIUM
STEELHEAD
■As the world’s largest producer of premium priced golf clubs, we are directing our policies, practices, and efforts toward
profit improvement through cost reductions and product innovation. Our efforts in research and development will contin-
ue to increase. Looking ahead a few years, we see great changes coming – especially in the ways and means of distributing
our products to the retailer and the public. We want to be leaders here. In the near term, we expect to have fewer but
stronger and more supportive retail golf shops as our partners in moving our products more effectively into the hands of
the world’s golfers.
■We believe that Callaway Golf owns the strongest brand names for golf clubs, not only in the United States golf club mar-
ket, but also in every other significant golf club market throughout the world. Additionally, in our view Odyssey is the
strongest putter brand in the U.S. market. Everything we do is directed toward enhancing this fortunate brand position –
for 1999 and beyond.
■Despite the financial drain in 1998 and 1999 caused by the expenses and costs of creating a golf ball business from scratch,
I am confident that this venture will pay off over the next few years for our Company, for our brand, and for our share-
holders. I think this new strength will be obvious – even to the many skep-
tics who now abound. I don’t recall that there were many “believ-
ers” when we first introduced the Big Bertha Driver in 1991.
■The popularity of the game of golf is great, and it is gradually
increasing in the U.S. and around the world. We would like
to encourage growth in golf by designing, making and sell-
ing equipment that makes this very challenging human
endeavor more enjoyable, and by opposing those who desire
to create artificial barriers to the enjoyment of the game.
Improvements in golf equipment technology during the last
20 years – including those that have originated with us – have
made the game far more fun for the average golfer without changing
the nature of the game and without being a “threat” to the game.
We would like to see such progress continue, not end.
■As part of our recent moves, we have promoted
Chuck Yash, the President and CEO of our golf ball
subsidiary, to the position of Senior Executive Vice
President, Golf Balls, for the parent company. We
also promoted Ron Drapeau, the former President
and CEO of our Odyssey subsidiary, to the position
of Senior Executive Vice President, Manufacturing
(Golf Clubs) for the parent company. We believe
that both of these moves add a great deal to the
strength of our senior management team.
■I expect that our income statement and balance
sheet at the end of 1999 will be much improved
over 1998 – reflecting a company that is
CALLAWAY GOLF COMPANY
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