Callaway Golf Company

Callaway Golf Company
Public
Traded as NYSE: ELY
S&P 600 Component
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 Increase US$887 Million (FY 2014)[1]
Increase US$31 Million (FY 2014)[1]
Increase US$16 Million (FY 2014)[1]
Total assets Decrease US$625 Million (FY 2014)[2]
Total equity Increase US$292 Million (FY 2014)[2]
Subsidiaries Odyssey, Ben Hogan
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 manufacturer 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 markets products under the Odyssey putter brand, acquired in 1997,[3] as well as 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, Georgia, and was a graduate of Emory University. He had become successful in the textile and wine industries, was an avid golfer. Among his favorite club brands was Hickory Sticks USA, which was known for producing clubs with hickory shafts and steel cores. At that time, Hickory Sticks was owned by Richard Parente, Dick De La Cruz, and Tony Manzoni. When Hickory Sticks started running low on funds, they began seeking investors and approached Callaway, who had just sold his vineyards for a $9 million profit. In 1982, he bought half of Hickory Sticks USA and the company was renamed "Callaway Hickory Stick USA." In 1983, he became the company's president and moved its headquarters to Carlsbad, California where he could be found selling clubs out of his Cadillac. In 1984, Callaway bought the rest of the company for another $400,000. The company's name was 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. He 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 was named chief club designer that same year and introduced computer-controlled manufacturing machines. With his help and that 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, constructed from carbon steel with modified U-grooved faces.[7]

In 1996, Callaway announced development of a new golf ball, under the leadership of Chuck Yash, the former head of Taylormade Golf. Callaway Golf spent three years developing the ball and a state-of-the-art production facility. The company invested $170 million in research and development, and construction of the 225,000-square-foot (20,900 m2) production facility.

Callaway Golf 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. They settled on only two versions 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 led to introduction of the Odyssey White Hot putter line in 2000.

Ely Callaway resigned as CEO and President in 1996, remaining as Chairman of the Board. Donald H. Dye was named CEO and President. Callaway also continued as President and CEO of Callaway Golf Ball Company. In 1998 he again became President and CEO of Callaway Golf Company, but died of pancreatic cancer on July 5, 2001. Ron Drapeau assumed his positions.[9]

In 2003 Drapeau announced the company's intention to purchase Top-Flite Golf and its Ben Hogan Golf division, soon after it filed for Chapter 11 bankruptcy. Due to competition from Adidas, the acquisition 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® footwear collection: "I'm always looking to use the best golf equipment, and that extends to my choice of shoes."[10]

On November 8, 2004, Callaway Golf named Chairman and Chief Executive William C. Baker President and COO, replacing Patrice Hutin.[11]

April 4, 2012, Callaway sold the Top-Flite brand to Dick's Sporting Goods, citing declining sales. [12]

Timeline

1984 -Ely Callaway buys a stake in Hickory Stick, a small clubmaker in Temecula CA, whose wedges combine a steel-core shaft with wooden veneer. The company name is changed to Callaway Hickory Stick.

1986 -Callaway takes sole ownership of the company, which he renames Callaway Golf Company.

1988 -Callaway Golf introduces the S2H2 iron, with a shorter hosel. The weight thus saved is relocated low in the clubhead.

1991 -The Big Bertha driver is introduced. Its large size and wide face increase 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, with two 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. It becomes the world's leading supplier 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.

2012 Oliver "Chip" Gordon Brewer III is named CEO of Callaway.

2013 -Callaway Tour Staff professional Phil Mickelson wins the Open Championship.

PGA Tour

European Tour

LPGA Tour

Champions Tour

Icons

Source

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, including Maverick McNealy,[13] Sergio García[14] and Xander Schauffele[15]. 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.[16]

Current products

Confirmed Future Products

Awards

On 8 December 2005, Callaway Golf received the 2005 Torch Award for Marketplace Ethics, from the San Diego Better Business Bureau.

References

  1. 1 2 3 Market Watch - Investment Bulletin 1
  2. 1 2 Market Watch - Investment Bulletin 2
  3. 1 2 "Callaway Golf in $130 Million Deal for Odyssey Sports". New York Times. July 22, 1997. Retrieved 15 October 2008.
  4. 1 2 "Company news; Callaway Golf beats out Adidas to buy top-flite". New York Times. September 5, 2003. Retrieved 15 October 2008.
  5. ↑ Golf - CBSSports.com CBS Sports - Golf
  6. ↑ Callaway Golf Company - Company History
  7. ↑ Callaway Forged Wedge
  8. ↑ Callaway Golf Company Online Case
  9. ↑ IPA Bulletin
  10. ↑ "Annika Sorenstam Steps Into 2003 LPGA Tour Season with Shoes from the New Callaway Golf Footwear Collection".
  11. ↑ "Callaway Golf Names Baker President, COO".
  12. ↑ Mike Stachura (4 April 2012). "Callaway sells Top-Flite to Dick's". Golf Digest. Retrieved 24 December 2015.
  13. ↑ Johnson, E. Michael. "Maverick McNealy signs endorsement deal with Callaway - Golf Digest". Golf Digest. Retrieved 24 April 2018.
  14. ↑ "Callaway signs Sergio Garcia to endorsement contract". Golf Week. 2 January 2018. Retrieved 24 April 2018.
  15. ↑ "Callaway signs Xander Schauffele to endorsement deal". Golf Week. 3 January 2018. Retrieved 24 April 2018.
  16. ↑ "Ballesteros 'Could Get Up and Down Out of a Garbage Can'".
This article is issued from Wikipedia. The text is licensed under Creative Commons - Attribution - Sharealike. Additional terms may apply for the media files.