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8-K - CALLAWAY GOLF CO | v191721_8k.htm |
EX-99.1 - CALLAWAY GOLF CO | v191721_ex99-1.htm |
Exhibit
99.2
CONTACT:
Tim
Buckman
Callaway
Golf
(760)
804-4133
Tim.Buckman@CallawayGolf.com
CALLAWAY
GOLF ANNOUNCES REDESIGN OF GLOBAL OPERATIONS SYSTEM
New
Manufacturing and Distribution Model Optimizes Efficiencies, Supports Global
Operations Strategy
CARLSBAD,
Calif., July 27, 2010 – Callaway Golf Company (NYSE: ELY) today announced a
restructuring of its global operations to occur over the next 18
months. The initiative encompasses the reorganization of
manufacturing and distribution centers located in Carlsbad, Calif. and Toronto,
Canada; the creation of third-party logistics sites in Dallas, Texas, and
Toronto; and the establishment of a new production facility in Monterrey,
Mexico. The redesign, which is part of the Company’s previously
announced Global Operations Strategy, increases speed and flexibility to the
support of customer service demands, optimizes efficiencies and furthers
long-term gross margin improvements.
Callaway’s
global operations restructure is the result of a comprehensive analysis to
identify improved manufacturing and supply chain processes. This
undertaking will provide greater flexibility to shift global production and
distribution in response to specific needs and changing global economic factors,
and is consistent with the Company’s recent distribution network renovations in
Europe, Japan and Southeast Asia. Callaway’s International business
is expected to represent more than half of the Company’s future annual revenue,
and this redesign of its global operations allows the Company to better serve
this expanding International footprint.
Manufacturing
and distribution capabilities will remain in Carlsbad and Toronto, however a
gradual reduction in workforce will impact each location over the next 18
months. Consistent with the Company’s core values, Callaway Golf will
provide transition support to impacted employees.
“The
redesign of Callaway’s global operations creates a stronger, more flexible model
that better positions our business for the future,” said George Fellows,
President and CEO, Callaway Golf. “This decision was based on an
extensive review of our operations structure and supports the gross margin
improvements necessary to secure our leadership position in a competitive
market.”
Callaway
Golf announced previously that it will release its second quarter 2010 financial
results on Wednesday afternoon, July 28, 2010. The Company will
subsequently hold a conference call to review 2nd quarter
financial results and discuss specifics of its global operations redesign at
2:00 p.m. PDT that same day. The call will be broadcast live over the Internet
and can be accessed at www.callawaygolf.com.
About
Callaway Golf
Through
an unwavering commitment to innovation, Callaway Golf Company (NYSE:ELY) creates
products and services designed to make every golfer a better golfer. Callaway
Golf Company manufactures and sells golf clubs and golf balls, and sells golf
accessories, under the Callaway Golf®, Odyssey®, Top-Flite®, and Ben Hogan®
brands in more than 110 countries worldwide. For more information please visit
www.callawaygolf.com
or shop.callawaygolf.com.
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