Callaway Golf Company
 | |
| Public (NYSE: ELY) | |
| Genre | Golf |
| Founded | 1982 |
| Founder | Ely Reeves Callaway, Jr. |
| Headquarters | Carlsbad, California, USA |
Area served | Worldwide |
Key people | Chip Brewer (CEO) |
| Products | Golf equipment |
| Revenue |
 US$951 Million (FY 2009)[1] |
 US$-31.5 Million (FY 2009)[1] | |
|
US$-20.9 Million (FY 2009)[1] | |
| Total assets |
US$876 Million (FY 2009)[2] |
| Total equity |
US$707 Million (FY 2009)[2] |
| Subsidiaries | Odyssey, Ben Hogan, Top-Flite |
| Slogan | Winners Play Callaway |
| Website | www.callawaygolf.com |
Callaway Golf Company is an American global sporting goods company that designs, manufactures, markets and sells golf equipment, golf accessories and golf lifestyle-related products in more than 70 countries worldwide. The American company, based in Carlsbad, California, is the world’s largest maker of golf clubs.
Callaway Golf sells its products through golf retailers and sporting goods retailers, through mass merchants, directly online, and through its pre-owned and trade-in services. Callaway Golf licenses its name, trademarks and service marks for golf lifestyle products including golf apparel, golf shoes, golf bags, headwear, watches, rangefinders, practice aids and travel gear.
Callaway Golf also market products under the Odyssey putter brand, acquired in 1997,[3] as well as the Top-Flite, Strata and Ben Hogan golf brands picked up following the bankruptcy of Spalding's former golf division in 2003.[4]
History
Callaway Golf Company was founded by former Burlington Industries textile president, Ely Callaway Jr. Callaway was raised in Lagrange, GA and was a graduate from Emory University. Callaway became very successful in the textile industry and was very fond of playing golf. At games, Callaway would use clubs by Hickory Sticks. The clubs were constructed of hickory-shafts with a steel core. At that time, Hickory Sticks was owned by Richard Parente, Dick De La Cruz and Tony Manzoni. As Hickory Sticks started running low on funds, they sought investors to help the company and approached Callaway. At the time, he had just sold his vineyards for a $9 million profit. Then in 1982, he bought half of Hickory Sticks, the company was renamed to Callaway Hickory Stick USA. In 1984, Callaway bought the rest of the company for $400,000. In 1983, he became president and moved the company to Carlsbad, California where he sold clubs out of his Cadillac. The company eventually changed to its present name in 1988.[5]
In 1985, the company hired Bruce Parker as head of sales, who later became the company's Chief Merchant and through his tenure with Callaway Golf as head of sales was responsible for sales in excess of $3.0 billion. As a key member of management, Parker was involved in all major decisions during the company's growth.
In 1986, Callaway hired a billiard cue designer, Richard C. Helmstetter, as a consultant. Helmstetter later became chief club designer that same year and introduced computer-controlled manufacturing machines. With his help and the help of Glenn Schmidt, the company's master tool maker, the company developed the original Big Bertha driver using large-volume (190cc) steel clubhead. The Big Bertha driver grew to 290 cc in 1997.[6]
In 1996, the company hired Roger Cleveland as chief club designer and in 2002, launched the Callaway Golf Forged Wedges. These wedges were constructed from carbon steel and a face with modified U grooves.[7]
In that same year, Callaway announced the development of a new golf ball, under the leadership of Chuck Yash, the former head of Taylormade Golf. Callaway Golf spent three years developing its new golf ball and a state-of-the-art production facility. The company’s entry into the market represented a $170 million investment in the research and development of the ball, construction of the 225,000-square-foot (20,900 m2) production facility, and development and purchase of special manufacturing equipment. Callaway’s manufacturing facility and its equipment were designed specifically for the unique production requirements for the new ball.
Callaway Golf Ball Company engineers, recruited from Du Pont and Boeing, used aerodynamic computer programs (first used by Boeing and General Electric) to evaluate more than 300 dimple patterns and more than 1,000 variations of ball cores, boundary layers, and cover materials to create the new Rule 35 ball. Callaway engineers designed only two models of the Rule 35 ball—choosing to develop a "complete-performance" ball rather than separate balls developed for spin, control, distance, and durability. Ely Callaway explained the company’s product development objectives as follows: "We have combined all of the performance benefits into one ball so players no longer need to sacrifice control for distance, or feel, or durability. Each Rule 35 ball contains a unique synergy of distance, control, spin, feel and durability characteristics. This eliminates confusion and guesswork in trying to identify the golf ball that is right for each individual golfer."[8]
In 1997, Odyssey Sports was acquired, expanding Callaway's line of putters.[3] This eventually led to the release of the Odyssey White Hot putter line in 2000.
Ely Callaway resigned as CEO and President in 1996 stepping aside for Donald H. Dye to take over as CEO and President, but Callaway continued to be an integral part of the company as Chairman of the Board and as President and CEO of Callaway Golf Ball Company and in a promotional role for all of Callaway's products. He later returned in 1998 to reassume his position as President and CEO of Callaway Golf Company but died of pancreatic cancer on July 5, 2001 which left the position to Ron Drapeau.[9]
In 2003, Ron Drapeau, announced the intended purchase of Top-Flite Golf, as well as its Ben Hogan Golf division, soon after it filed for Chapter 11. Following competition from Adidas the acquisition would eventually cost Callaway Golf $169 million.[4]
In 2003, Callaway Golf Staff Professional Annika Sorenstam announced that she would wear shoes from the new Callaway Golf(R) footwear collection."I'm always looking to use the best golf equipment, and that extends to my choice of shoes," said Sorenstam.[10]
On November 8, 2004, Callaway Golf named Chairman and Chief Executive William C. Baker President and COO, as Patrice Hutin resigned from his positions.[11]
April 4th, 2012, Callaway sold the Top-Flite brand to Dick's Sporting Goods, citing declining sales. [12]
Financial
In February 1992, Callaway Golf went public on the New York Stock Exchange with a market capitalization of $250 million. By late 1997, it reached a market capitalization of over $3.0 billion.
Endorsements
Callaway has endorsement deals with many professional golfers who play on the world's leading tours. They also have commercial relationships with some of the legends of the sport including Arnold Palmer and Annika Sörenstam, and celebrities such as Justin Timberlake. After being endorsed by Callaway late in his career, Seve Ballesteros expressed his gratitude to Ely Callaway by giving him a vintage Rolex, one he had worn since he first signed with the watchmaker.[13]
Key Events & Dates in Callaway History
1984 -Ely Callaway buys a stake in Hickory Stick, a small clubmaker in Temecula, Calif. that makes wedges equipped with a unique shaft that features a steel core and wooden veneer in an attempt to combine the performance of a modern steel shaft with the appearance of a hickory shaft. The company name is changed to Callaway Hickory Stick.
1986 -Callaway buys out his partners and takes sole ownership of the company, which he renames Callaway Golf.
1988 -Callaway Golf introduces the S2H2 iron. It features a significantly shorter hosel than conventional irons; the weight saved from making the hosel shorter is relocated low in the clubhead to increase forgiveness and ease of launch.
1991 -The Big Bertha driver debuts and becomes an instant hit among golfers. Big Bertha’s unique shape, large size and “wide body” configuration give it a high degree of forgiveness that increases distance and accuracy of off-center hits.
1992 -Callaway Golf goes public In February 1992 on the New York Stock Exchange, trading under the symbol ELY, with a market capitalization of $250 million.
1994 -Callaway introduces Big Bertha irons which incorporates two key innovations: a thin, flexible clubface and 360-degree undercut around the perimeter of the cavity, which promote increased distance and forgiveness.
1995 -Callaway Tour Staff professional Annika Sorenstam wins the U.S. Women’s Open.
1996 -Callaway Tour Staff professional Annika Sorenstam wins the U.S. Women’s Open for the second time. -Renowned golf instructor David Leadbetter joins the Callaway Teaching Staff. -Wedge designer Roger Cleveland leaves the Cleveland golf company to join Callaway.
1997 -Callaway Golf acquires the Odyssey brand from Tommy Armour Golf and quickly turns it into the world’s number one brand of putters.
2000 -Callaway introduces its first golf ball, Rule 35, in two models, Red and Blue. Rule 35 Red has a firmer feel, Rule 35 Blue has a softer feel. Whereas golf balls are traditionally sold in sleeves of three and boxes of 12, Rule 35 is offered in sleeves of five and boxes of 15. -Arnold Palmer joins the Callaway Golf Tour Staff.
2001 -Callaway Tour Staff professional Annika Sorenstam wins the Kraft Nabisco Championship.
2002 -Callaway Tour Staff professional Annika Sorenstam wins the Kraft Nabisco Championship for the second time.
2003 -Callaway Tour Staff professional Annika Sorenstam wins the Women’s British Open and the LPGA Championship.
2004 -Callaway Tour Staff professional Phil Mickelson wins the Masters. -Callaway Tour Staff professional Annika Sorenstam wins the LPGA Championship for the second time.
2005 -Callaway Tour Staff professional Phil Mickelson wins the PGA Championship and Callaway Tour Staff professional Annika Sorenstam wins the Kraft Nabisco Championship for the third time and the LPGA Championship for the third time.
2006 -Callaway Tour Staff professional Phil Mickelson wins the Masters for the second time and Callaway Tour Staff professional Annika Sorenstam wins the U.S. Women’s Open for the third time.
2010 -Callaway Tour Staff professional Phil Mickelson wins the Masters for the third time.
2013 -Callaway Tour Staff professional Phil Mickelson wins the Open Championship.
PGA Tour
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European Tour
LPGA Tour
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Champions Tour
Icons
Current products
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Drivers
Fairway Woods
Hybrids
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Irons
Balls
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Confirmed Future Products
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Wedges
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Awards
On Dec 8, 2005, Callaway Golf was recognized by the San Diego Better Business Bureau with the 2005 Torch Award for Marketplace Ethics.
References
- 1 2 3 Dick's Sporting Goods (DKS) annual SEC income statement filing via Wikinvest
- 1 2 Dick's Sporting Goods (DKS) annual SEC balance sheet filing via Wikinvest
- 1 2 "CALLAWAY GOLF IN $130 MILLION DEAL FOR ODYSSEY SPORTS". New York Times. July 22, 1997. Retrieved 2008-10-15.
- 1 2 "Company news; callaway golf beats out adidas to buy top-flite". New York Times. September 5, 2003. Retrieved 2008-10-15.
- ↑ Golf - CBSSports.com
- ↑ Callaway Golf Company - Company History
- ↑ Callaway Forged Wedge
- ↑ Callaway Golf Company Online Case
- ↑ http://www.infoplease.com/ipa/A0884345.html
- ↑ "Annika Sorenstam Steps Into 2003 LPGA Tour Season with Shoes from the New Callaway Golf Footwear Collection".
- ↑ "Callaway Golf Names Baker President, COO".
- ↑ Mike Stachura (2012-04-04). "Callaway sells Top-Flite to Dick's". Golf Digest. Retrieved 2015-12-24.
- ↑ "Ballesteros ‘Could Get Up and Down Out of a Garbage Can’".