CARLSBAD, Calif. (March 12, 2003) -- TaylorMade-adidas Golf today announced record revenues and operating profits for both the fourth quarter and full year 2002. Fourth quarter revenue reached EUR 191 million, a 79% increase from fourth quarter 2001. Full year 2002 revenue increased 30% to EUR 707 million from EUR 545 million in 2001. In constant currency, full year 2002 revenues increased 37% from 2001. Operating profit also achieved record levels, rising 19% for the full year 2002 to EUR 74 million.
Revenue growth in both the fourth quarter and the full year was influenced by a variety of factors, including strong demand for the tour-proven R500 Series of drivers, several new-product introductions that took place during the fourth quarter, and the first-time inclusion of revenues related to the Maxfli and Slazenger Golf brands. In particular, fourth quarter revenue growth was significantly influenced by the launch of TaylorMade's rac (relative amplitude coefficient) irons, including the OS, LT and MB models; the Rescue Mid, an alternative to long-irons; and Maxfli's Performance Series of golf balls.
In terms of product revenues, metalwood revenues totaled EUR 348 million in 2002, a 24% increase compared to the previous year. At EUR 348 million, TaylorMade is now number one in terms of worldwide metalwood revenues. As a percentage of total revenues, metalwoods represented 49% of TaylorMade-adidas Golf's business, followed by irons and golf balls at 18% and 10%, respectively.
On a geographic basis, revenue growth continued to be very broad-based. Full-year 2002 revenues grew 34% in Europe, followed by North America and Asia at 32% and 24%, respectively. Total revenues are now equally balanced between the U.S. and non-U.S. markets.
"The fourth quarter of 2002 capped a remarkable year for TaylorMade-adidas Golf," said CEO and President Mark King. "Despite an extremely difficult market environment we achieved the record results that we mapped out three years ago. In addition to hitting our financial targets we also made enormous progress toward achieving our key strategic objectives. We are now extremely well-balanced geographically, with total revenues split evenly between U.S. and non-U.S. operations. On the product side, our acquisition of the Maxfli brand has given us a strong foothold in the important golf ball category, allowing us to present our customers with a complete range of golf products. And, most importantly, the performance of our products is unmatched, and a true reflection of our never-ending pursuit of innovation and technological leadership."
Continued King, "As TaylorMade-adidas enters 2003 we remain optimistic about the strength of our brands and our product line. Starting with the continued popularity of our metalwoods, and adding to that the fourth quarter introduction of our rac irons, Rescue Mid and Maxfli Performance Series golf balls, we currently boast the strongest and most complete product offering in our history. Although the overall operating environment is expected to grow increasingly challenging, we believe that we will continue to drive strong bottom-line results. We will at the same time maintain a focus on executing a variety of operational improvements, and on reaping the full-year efficiencies available to us through the integration of the Maxfli brand. At TaylorMade-adidas Golf we remain committed to maintaining our position as the best performance golf company in the world."
About TaylorMade-adidas Golf
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 in the following websites: http://taylormadegolf.eu, http://adidasgolf.eu/adidasGolf/adidasGolf,en_GB,sc.html, http://www.maxfli.com/.