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Ronald A. Drapeau | Chairman and CEO | April 1, 2004
multi-layer cores, offer tour-level
performance as confirmed by their
#1 endorser, U.S. Open winner Jim
Furyk. The Hogan brand also plans
to introduce several new club
products, including the FTX-Forged
Transition irons and CFT Hybrid irons and
an expanded line of Ben Hogan Bettinardi
putters, including the “Baby Ben” putter that
was so successful on tour in 2003. The Top-
Flite brand will also be more prominent in
the club category, with new recreational
clubs. Additionally, in 2004 you will recognize
our change of strategy for Top-Flite by
reverting back to tour professionals being
branded as Top-Flite rather than using sub-
brands such as Strata. We believe over time
this exposure will add significant marketing
value back to this staple brand in golf.
Strategically, we have several oppor-
tunities. Most obvious is the opportunity
to integrate the foreign operations of
Top-Flite and Callaway Golf. These are
not just savings as the result of synergies.
There are real opportunities to benefit
both organizations through the sharing
of
best practices, ideas, people, customer
contacts,
and just plain raw excitement
about coming to work in a new environment.
In addition, we still have our strong balance
sheet, and there may yet be some acquisition
opportunities available to us that are foreclosed
to our more financially strapped competitors. Six Sigma work
on our core processes, as discussed above, will continue to generate
savings while improving our products and our services.
Now you can see why I am sounding optimistic – for the first
time, I think, since I became CEO. The world economies seem to
be improving. I believe the golf industry will be considerably
healthier. We have a great line of products. And we are posi-
tioned with the best team in the industry to take advantage of
these dynamics. It will not be easy, and nothing is guaranteed.
Yet, I am confident that our future will be better than our
most recent past.
One thing is clear: we have the desire, and the ability and the
resources to do this. We have led the premium woods business by
a wide margin before, we need to repeat it. When we set a goal
for ourselves such as fixing the losses in the golf ball business, we
do it. It is up to us to perform at our highest levels and if we do, I
think we will see some very good results in 2004.
We appreciate the decision you have made to invest in us.
We will focus on sound financial fundamentals that deliver strong
earnings and cash flow while looking for the opportunities to
grow
using our financial strength and capitalizing on strategic
opportu
nities. And we will do it with the same passion that golfers
bring to the game.
Thank you for your continued support. I look forward to seeing
many of you at our Annual Meeting of Shareholders on May 25, 2004.
pleasingly different
CALLAWAY GOLF COMPANY 7