Black Numbers -- and Black Clouds on the Horizon

By Adam BarrJuly 22, 2002, 4:00 pm
Positive numbers appeared on the income statements of two major golf companies last week. But the industry outlook cant be described the same way.
In the second quarter, Callaway Golf (NYSE: ELY) was able to wring $138.5 million gross profit (a 4.2 percent increase over the comparable quarter last year) from sales of $252.2 million (a 1 percent drop from the second quarter of 2001).
For the same quarter, Acushnet Co., the unit of consumer product giant Fortune Brands (NYSE: FO) that includes Titleist, FootJoy and Cobra, posted $63.9 million operating profit (a 9.6 percent boost compared to last years second quarter) on sales of $334.7 million (an increase of 11.4 percent over the second quarter of 2001).
But Titleist recently laid off 290 employees in its golf ball operations due to a 'contrarian market,' said Wally Uihlein, Acushnets chief executive.
'The contraction of discretionary spending is going to continue at least through the back half of 2002,' Uihlein said. 'The Dow didnt get to 8,500 overnight, and it wont get back up that fast either.'
Inventory of golf balls at retail is higher now than is usual for this time of year, Uihlein said, so his company had to adjust its production run rates. That required the hard decision to let go the 290 workers, about the amount Acushnet hired in 2000 to ramp up for the increased demand created by the buzz about the companys Pro V1 model golf ball. Uihlein bit the bullet now rather than cause hardship around year-end holidays, he said.
Uihlein predicts a three percent contraction this year in the 50-million-dozen annual U.S. golf ball market. Acushnet now commands about 46 percent of that market.
Nonetheless, development for two or three ball models that had been planned for 2003 will continue, largely because in big companies such plans gather too much momentum to derail. Acushnet has decided not to attend the big industry trade show in Orlando next January; Uihlein plans to use that money to energize more closely targeted marketing programs ' and to fund stepped-up development of those 2003 models.
Callaway, which attributes its profitability during a sales drop to aggressive cost control, is also moving ahead with product and promotion plans. The company entered the value golf ball segment with the Warbird, a two-piece distance ball. The ball will have its own logo to distinguish it from Callaways higher-end models, but the packaging will remind customers that the balls are 'powered by Callaway.'
On the club side, new Callaway wedges by veteran designer Roger Cleveland will reach stores soon. Callaway will drop suggested retail prices on its ERC line of drivers and fairway woods, and for sales between now and Sept. 30, buyers of ERC clubs will receive a free dozen Callaway HX golf balls. The company plans to capitalize on the expected adoption of equipment regulations that will make high-coefficient of restitution drivers conforming between Jan. 1, 2003 and Dec. 31, 2007.
Callaway officials predict sales of between $810 million and $820 million for the year, which would amount to about $1.02 per share. In 1997, Callaways best year, the company had sales of $842.9 million.
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After Further Review: Tiger's return comes at perfect time

By Golf Channel DigitalJanuary 22, 2018, 2:19 am

Each week, takes a look back at the week in golf. Here's what's weighing on our writers' minds.

On the current state of golf as Tiger Woods returns to competition ...

Less than four days before Tiger Woods returns to official competitive golf for the first time in a year, Jon Rahm, the new second-ranked player in the world, won on the PGA Tour and Rory McIlroy made an impressive 2018 debut on the European Tour (T-3).

Not since Ben Hogan, Arnold Palmer and Jack Nicklaus crossed paths at the 1960 U.S. Open has there been so many superstars all poised for big seasons, with world No. 1 Dustin Johnson having already won this year and Jordan Spieth and Justin Thomas both coming off stellar seasons.

It’s a good time for golf. - Rex Hoggard

On Tommy Fleetwood's continued success ...

There have been scores of talented European players whose skills didn’t translate to the PGA Tour … and maybe, in a few years, Tommy Fleetwood will prove to be no different.

He sure looks like the real deal, though.  

His title defense in Abu Dhabi – on the strength of a back-nine 30 in windy conditions – was his third title in the past 12 months and 11th top-10 overall. A few of those have come in majors and World Golf Championship events, too, which led the reigning Race to Dubai champion to accept PGA Tour membership for this season.

Beginning at Riviera, he plans to play exclusively in the States through May, then reassess for the rest of the year. Hope he sticks, because he’s a fun personality with tons of game. - Ryan Lavner

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Rahm passes Spieth to become world No. 2

By Nick MentaJanuary 22, 2018, 1:25 am

With his win Sunday at the CareerBuilder Challenge, Jon Rahm picked up his second PGA Tour victory and moved to No. 2 in the FedExCup points standings.

He picked up one more No. 2, too.

The 23-year-old Spaniard passed Jordan Spieth to move to No. 2 in the Official World Golf Ranking, behind only Dustin Johnson.

In 19 months, since June 2016, Rahm has rocketed from No. 776 in the world to No. 2, thanks in part to his low divisor, his number of events played.

Asked after his playoff victory over Andrew Landry to discuss his rapid ascent up the world rankings, Rahm was almost at a loss.

“It's hard to believe to be honest, passing Jordan Spieth,” he said. “That's a three-time major champion. I only have two wins. He's got 10-plus, right? It's again – I've said it many times – I never thought I was going to be at this point in my life right now.”

Rahm may only have two PGA Tour titles, but this is his fourth worldwide win in the last year, dating back to last season’s Farmers Insurance Open. He also took the Dubai Duty Free Irish Open and the DP World Tour Championship on his way to claiming the European Tour’s 2017 Rookie of the Year Award.

Dating back to the start of last season on the PGA Tour, Rahm has racked up 12 top-10s, three runner-ups, and two wins.

He will head to Torrey Pines next week ready to defend for the first time.

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Brady compares self to Woods after winning AFC title

By Jason CrookJanuary 22, 2018, 1:05 am

Tom Brady and Tiger Woods are two of the all-time greats in their respective sports ... a fact that is not lost on the five-time Super Bowl winning quarterback.

Fresh off leading the New England Patriots to a AFC Championship victory over the Jacksonville Jaguars, Brady was asked about winning the game despite a cut on his throwing hand - which made national news heading into the matchup.

His response invoked the name of a certain 14-time major winner, something that would be tough to pull off, if not for the fact that he is, you know, Tom Brady.

“I think it's kind of arrogant to say it bothered me when we had a pretty good game, so I wouldn't say that," the 40-year-old told reporters after the game. "It's like when Tiger Woods said, ‘That was my C game’ and he won the tournament."

Tiger Woods winning with his "C game" may be a distant memory for golf fans, but no matter what game he brings, his next chance to win comes next week at Torrey Pines during his official comeback to the PGA Tour.

Brady has a shot at his sixth Super Bowl title in two weeks. The Patriots would probably benefit from him bringing a little better than his "C game" as well.

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Rahm beats Landry in playoff to win CareerBuilder

By Nick MentaJanuary 22, 2018, 1:00 am

Jon Rahm birdied the fourth extra hole Sunday to defeat Andrew Landry in a playoff, win the CareerBuilder Challenge and move to No. 2 in the Official World Golf Ranking. Here’s how things played out in overtime at PGA West:

Leaderboard: Rahm (-22), Landry (-22), John Huh (-20), Adam Hadwin (-20), Martin Piller (-20), Kevin Chappell (-19), Scott Piercy (-19)

What it means: This is Rahm’s second PGA Tour win and his fourth worldwide victory in the last year, dating back to last season’s Farmers Insurance Open. Rahm took the early lead Thursday with an opening 62 and after rounds of 67-70, he started the final round two back. On Sunday, he made five birdies without dropping a single shot on the intimidating Stadium Course. In the clubhouse at 22 under, Rahm watched as Landry made birdie on 18 to force a playoff.

Rahm missed birdie putts that would have ended the tournament on the final hole of regulation and on each playoff hole. Finally, on his fourth trip down 18 of the day, his birdie bid found the cup. With the victory, Rahm passes Jordan Spieth to move to No. 2 in the Official World Golf Ranking, trailing only Dustin Johnson. He enters next week at Torrey Pines looking to defend for the first time.

Best of the rest: A two-time winner playing his second full season on the PGA Tour, Landry shot 68 Sunday, making birdie on the 72nd hole to force extras. Once Rahm finally made birdie on the fourth playoff hole, Landry's putt to extend slid by on the right edge. This is Landry's best career finish on the PGA Tour. Had he won, he would have secured full Tour status through the 2019-20 season and earned invites to the Masters, Players, and PGA Championships.

Round of the day: Sam Saunders fired an 8-under 64 to register this best finish of the season, a tie for eighth at 18 under. The reigning Tour Championship winner was 9 under par through 12 holes before making bogey at 13 and parring his way into the clubhouse.

Biggest disappointment: Overnight leader Austin Cook was eyeing his second win of the season but never contended. The RSM champion carded two double bogeys Sunday en route to a 3-over 75, dropping him from the 54-hole lead to a tie for 14th.

Shot of the day: Rahm's putt to win:

Quote of the day: "One of us had to do it and either one of us would have been a well-deserving champion." - Rahm on his playoff victory over Landry