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Titanium drives golf sales
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August 12, 1996: 4:58 p.m. ET
Players love the lightweight, supercharged clubs
From Correspondent Sean Callebs
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NEW YORK (CNNfn) - It's the most popular buzz word in golf this summer: titanium. Professionals and hackers alike are shelling out large sums of money for clubs made out of this lightweight material that produces long, straight drives down the fairway. With big swinging pros like Greg Norman helping to popularize the new clubs (825K QuickTime movie), it should be of no surprise that club makers are rushing to cash in on this latest technological advance.
The most popular brands right now are Callaway's Great Big Bertha, Taylor Made's Titanium Bubble and Norman's King Cobra Ti.
Tommy Armour's new titanium irons run about $1,500 a set. A driver can run $500. After spending a million dollars to develop its new clubs, Michael Magerman, president and chief executive officer at privately held Tommy Armour Golf, said his company is in a rush to get them to market.(139KB WAV)
The advantage of titanium is that because it is so light, the club's head can be larger. A bigger head gives even the high-handicappers the ability to hit the ball straighter and farther.
The new clubs also give manufacturers an advantage, too. Oppenheimer & Co. estimates that Callaway's stainless steel driver wholesales for $150 -- a figure which allows for a $77 profit. At $300, the company's titanium driver translates into twice the profit.
Callaway stock, the closest thing to pure-play in titanium, has more than doubled in the past year. However, some people need to be reminded that the titanium club is just that -- a club -- and not a secret weapon that will add 50 yards to every drive.(132KB WAV)
Many pros say if you don't like titanium, stick around, another hot new club is sure to hit the market in a few years. Unfortunately, no matter how new the clubs, most golfers will still be stuck with the same old swing.
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