Callaway 2007 Annual Report Download - page 7

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along with a new line of golf equipment
designed specifically for women, to help
get us there.
Another focus will be continuing to expand
our international reach. In 2007, international
sales represented approximately 47% of
revenue and 53% of profits. With our
commitment to growing our business both
at home and abroad, we one day expect to
generate the majority of our business from
international markets – including Eastern
Europe, China and Latin America. With the
help of a new integrated, global view of the
business, we can develop innovative products,
programs and marketing vehicles that are
globally efficient and locally relevant.
We’ve begun the process of expanding our
reach beyond the traditional golf business,
as well. We want to be viewed not only as a
premier golf company, but also as a premier
consumer products company in the active
leisure segment. This is a subtle, yet
important distinction, especially as we begin
to expand the appeal of golf to untapped
audiences and new geographies. This focus
presents us with a fresh growth opportunity
and competitive marketing advantage.
While we are confident that our new product
introductions will be met with widespread
approval by golfers around the world, this
year will not be without its challenges. In
light of uncertain economic forecasts, it’s
important to remember that we are not
the same Company we were just a few
short years ago. We entered this year with
strong Brand momentum, our supply chain
is much improved with greater flexibility to
changes in the marketplace, nearly half of
our business originates internationally, and
our balance sheet is strong with no long-term
debt. However, we are proactively addressing
these uncertainties by developing plans that
will let us adapt quickly and efficiently to
changing market conditions, allowing us to
remain competitive and profitable.
Looking toward 2009 and beyond, the cutting
edge products in our pipeline are poised
to allow us to expand our leadership within
the industry. The spirit of technological
innovation and continuous improvement
instilled by Ely Callaway is alive and well.
Over the last quarter century, our brand
has carved a place in the hearts and minds
of golfers everywhere. Most importantly,
Callaway Golf has stayed true to its
philosophy of producing innovative products
that help make every golfer a better golfer.
I’d like to express my sincere thanks to our
employees, our customers, our consumers
and you, our shareholders, for your
contributions to an outstanding year and
for your continued support. Here’s to the
next great 25 years at Callaway Golf.
PERFORMANCE MOMENTUM
George Fellows
President and Chief Executive Officer
March 17, 2008