Acushnet Consolidation

Acushnet have announced a consolidation of Titleist and Cobra to achieve a reduction in duplicated costs, especially on the custom-fitting side of the business.

"Aside from the spring bubble of demand, the structure of the business will be built to order," said Wally Uihlein, president and ceo of Acushnet.

Uihlein believes industry conditions are still soft and will remain that way for the next 18 months. "The peak for the golf club market was $3 billion, 24 to 30 months ago. Currently we are at $2.5 billion, a 15 to 20 per cent decline," he said.

"Excess inventory at retail levels appears to be in the area of four to six months versus the traditional two to three months. We expect the balance of 1999 and 2000 is required to 'flush' through this. As we experienced in 1983 through 1986, it takes longer that anybody wants to admit.

"Cobra is not for sale. Steps have been put in place to be who we need to be. We are not over-extended."