TROY, Mich., March 27 /PRNewswire-FirstCall/ -- Champion Enterprises,
Inc. (NYSE: CHB), a leader in factory-built construction, has announced
that it will close its manufacturing facility in Silverton, Ore., and idle
the last of four plants at its complex in LaGrange, Ind., transferring the
LaGrange production to the Company's nearby facilities in Topeka, Ind.
As a result of the closures, the Company expects to incur pretax cash
restructuring charges of approximately $2.1 million in the first quarter
ending March 29, 2008. In addition, the Company is in the process of
assessing the magnitude of the related pretax non-cash fixed asset
impairment charges that it expects to record during the quarter which could
be as high as $7.5 million.
"Our ongoing efforts to deliver strong segment operating margins in the
face of challenging U.S. housing markets require that we continuously
monitor the regional capacity utilization rates and profitability of our
manufacturing footprint," stated William Griffiths, chairman, president and
chief executive officer of Champion Enterprises, Inc. "As a result of
lagging sales, we made the difficult decision to further consolidate our
U.S. operations, bringing the total number of plants idled or closed since
mid-2006 to 10."
About Champion
Troy, Michigan-based Champion Enterprises, Inc., a leader in
factory-built construction, operates 33 manufacturing facilities in North
America and the United Kingdom working with independent retailers, builders
and developers. The Champion family of builders produces manufactured and
modular homes, as well as modular buildings for government and commercial
applications. For more information, please visit http://www.championhomes.com.
Forward-Looking Statements
This news release contains certain statements, including statements
regarding expected restructuring and fixed asset impairment charges and
segment operating margins, each of which could be construed to be forward-
looking statements within the meaning of the Securities Exchange Act of
1934.
These statements reflect the Company's views with respect to future
plans, events and financial performance. The Company does not undertake any
obligation to update the information contained herein, which speaks only as
of the date of this press release. The Company has identified certain risk
factors which could cause actual results and plans to differ substantially
from those included in the forward-looking statements. These factors are
discussed in the Company's most recently filed Form 10-K and other filings
with the Securities and Exchange Commission, in each case under the section
entitled "Forward-Looking Statements," and those discussions regarding risk
factors are incorporated herein by reference.
SOURCE Champion Enterprises, Inc.
 back to top
Related links:
http://www.championhomes.com
http://www.prnewswire.com/comp/110861.html/
CONTACT:
Investors, Laurie Van Raemdonck, Vice
President, Investor Relations, +1-248-614-8267,
lvanraemdonck@championhomes.net, or Media, Christine Fisher of
pushtwentytwo, +1-248-335-9500 ext. 30,
cfisher@pushtwentytwo.com, for Champion Enterprises, Inc.
|
