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TaylorMade-adidas Golf Announces Second Quarter Results Quarterly revenue growth returns as product domination continues on PGA Tour in 2003 Contact John Steinbach CARLSBAD, Calif. (August 6, 2003) - TaylorMade-adidas Golf today announced that currency-neutral sales for the second quarter increased 4% compared to the prior year. In the reporting currency, revenues declined 13% from EUR 203 million in 2002 to EUR 177 million in 2003. During the first six months of 2003, underlying revenues declined 3% compared to the same period in 2002. In euro terms, this represents a decrease of 18% from EUR 379 million in 2002 to EUR 311 million in 2003 and relates primarily to the timing of global product launches and the non-renewal of the Slazenger Golf license. Excluding the EUR 17 million of Slazenger Golf sales that were included in last year's sales, as part of a licensing partnership with Dunlop Slazenger, currency-neutral sales during the first half of 2003 increased 1% (-14% in reporting currency). The underlying second quarter growth was primarily a result of increased focus on the adidas Golf brand and the TaylorMade brand irons. On a currency-neutral basis, double-digit quarterly increases were seen in the apparel (18%) and footwear categories (28%), as well as in the iron category (18%). The tremendous growth in apparel is due primarily to the continued strengthening of the adidas Golf brand combined with strong retailer acceptance of the ClimaLite(R) and ClimaCool(R) performance segment of the product range. The iron position has strengthened through the rac (relative amplitude coefficient) iron family of OS, LT and MB models. rac irons continue to build momentum and augment the strength of the TaylorMade brand. Sales in Canada and South Korea generated strong double-digit quarterly growth vs. the second quarter of 2002, while revenues in North America increased 7% on a currency-neutral basis. "Our strong second quarter results clearly indicate the progress being made this year by our team at TaylorMade-adidas Golf," said CEO and President Mark King. "Continued consumer acceptance of our golf brands and the results turned in on the PGA Tour are both very clear indicators of our leading position in the golf industry in 2003." TaylorMade-adidas Golf will use 2003 to position itself for future growth after sales in adidas-Salomon's golf division more than doubled over the last four years. After the acquisition of the Maxfli golf brand at the end of last year, TaylorMade-adidas Golf holds strong market positions in all segments of the market: clubs, balls, footwear and apparel. For the full year, TaylorMade-adidas Golf forecasts stable currency-neutral sales and an improvement to operating profit through strict cost control. Added King, "At the halfway point of this year we are very confident about achieving and exceeding our annual business plan." TaylorMade-adidas Golf continued to outpace its competition on the PGA Tour during the first half of 2003 as evidenced by the following achievements: * TaylorMade drivers ranked outright No. 1 at every event with the
exception of one, the Mercedes Championship, in which TaylorMade tied
for No. 1. The R500 Series of drivers has continued its dominance both on the US PGA Tour and International Tours in the first half of 2003 with: * Eight tour victories on the US PGA Tour "The numbers speak for themselves," continued King, "and they say that TaylorMade is the No. 1 driver, fairway wood and iron on the PGA Tour. There's a reason why the best players in the world choose TaylorMade, and that's because it's the best-performing golf equipment in the world." About Taylor Made Golf Company, Inc. dba TaylorMade-adidas Golf Company TaylorMade Golf has led the golf industry's technological evolution since being founded in 1979. In 1998 the company joined with adidas Golf, becoming a wholly owned subsidiary of adidas-Salomon AG. Dedicated to being the best performance golf company in the world, consumers can find more information on TaylorMade-adidas Golf at (800) 888-CLUB or www.tmag.com, www.taylormadegolf.com, www.adidasgolf.com, www.maxfli.com or www.rossaputters.com. |