Callaway Golf Elects New Chairman

Callaway Golf Co., the largest U.S. golf-club maker, Monday elected Ronald Drapeau chairman to succeed the late founder, Ely Callaway.

Drapeau, 54, joined the Carlsbad, Calif.-based company in 1996 and was elected president and chief executive May 15. He also serves on the board’s finance committee. Callaway, 82, died July 5 of pancreatic cancer.

Callaway’s invention of the Big Bertha driver, which features a larger striking area on an oversize club face, revolutionized golf when it debuted a decade ago.

Drapeau has said he plans to continue with Callaway’s strategy of developing new products for duffers and pros alike while maintaining the value of the brand.

The slowing global economy has had an effect on most golf-club makers, including Callaway. However, Callaway’s sales for the first six months of the year grew 6% to $515 million. But the company has forecast that sales will slow during the second half of the year, to $830 million to $840 million, roughly flat compared with a year ago.

Drapeau joined the company as executive vice president of manufacturing before moving into the top management post.

He said he will serve on a newly formed executive committee along with board members William Baker, Ronald Beard and Richard Rosenfield, who is co-founder and co-chairman of Los Angeles-based California Pizza Kitchen Inc.

The company also said it will buy back as much as $100 million in common stock through Dec. 31, 2002.

Callaway Golf stock fell 17 cents to close at $16.12 on the New York Stock Exchange. Shares have risen 20% in the past year.