Koch Also to Serve as Interim President and CEO to Lead
Development of Strategy to Accelerate Return to Profitability
AUBURN HILLS, Mich., June 30 /PRNewswire-FirstCall/ --
Champion Enterprises, Inc. (NYSE: CHB), the world's largest homebuilder, today
announced that Albert A. Koch will be named Chairman of the Board at a
scheduled meeting of the Board of Directors to be held this afternoon.
Mr. Koch will also be appointed Interim President and Chief Executive Officer,
and charged with leading a thorough review of Champion's operations and
accelerating the strategy to return the company to profitability.
Mr. Koch will succeed Walter R. Young who is departing after 13 years of
leading the company. The Champion Board of Directors thanks Mr. Young for his
significant contributions to the company and wishes him all the best in the
future.
The Board of Directors believes that Champion's most important priorities
are to accelerate the pace of change at the company and return to
profitability, both areas where Mr. Koch has a proven track record of
excellence. He will be supported by the Performance Improvement Group of
AlixPartners LLC. Mr. Koch is Chairman of AlixPartners.
Mr. Koch said, "I am excited to lead Champion at this important time in
its history. The company has the leading brand in manufactured housing, a
great distribution network and dedicated people at all levels of the
organization. Champion today needs to take action to strengthen its
operations and reduce its cost structure as the challenging industry
environment continues. My focus at Champion will be on these important needs,
which we believe will lead to improved financial results and an enhanced
competitive position. The company has an exceptionally strong cash position
and no principal debt payments due until 2007, which gives us important
financial strength as we move forward."
Brian Jellison, a Director of Champion, added, "Al Koch's arrival gives
the Board considerable confidence as we head into this leadership transition.
As our Interim President and CEO during the next several months, we expect
that Al will lay the groundwork for Champion to distinguish itself as the
low-cost, high-value provider in the manufactured housing industry -- in any
economic environment. He will also take an active role with the Board in the
recruitment of a permanent President and CEO. Al's considerable experience
will facilitate Champion's ability to accelerate the change initiatives that
are underway, and develop new opportunities to strengthen the company's
performance."
The Board of Directors expects that Mr. Koch's service as President and
CEO will continue for the duration of a search for a permanent President and
CEO. After the search is completed, Mr. Koch is expected to serve as Non-
Executive Chairman.
Mr. Koch most recently served as interim Chief Financial Officer of Kmart
Corporation. In this position, he provided executive leadership and led the
development of a multi-year operating business plan, as well as driving
financial performance in conformity with the plan. His other assignments have
included serving as interim CFO of Oxford Health Plans and leading the
restructuring of Ryder System, Inc., which resulted in the building of
significant shareholder value. Mr. Koch was a partner with Ernst & Young for
14 years, including seven years as Managing Partner of the firm's Detroit
office. He holds a bachelor's degree in accounting from Elizabethtown
College, and is a member of several professional associations.
Conference Call
Champion Enterprises will host an investment community conference call to
discuss this leadership change today, Monday, June 30, 2003 at 9:00 am Eastern
time. To participate in the conference call, please dial (719) 867-0640. The
call can also be accessed via the company's website, http://www.championhomes.net ,
by visiting the Investor Relations section, clicking on "Live Webcast" and
following the instructions.
A replay of the conference call will be available after 12:00 pm Eastern
time today through midnight on Sunday, July 6. To access the replay, dial
(719) 457-0820, passcode #567142. The replay can also be heard via the
Investor Relations section of the website shortly after the call is completed.
To access the replay, visit the Investor Relations section of the website,
click on "Audio Archives" and select "Leadership Change."
About Champion Enterprises
Champion Enterprises, Inc., headquartered in Auburn Hills, Michigan, is
the world's leading homebuilder and has produced more than 1.5 million homes
since the company was founded. The company operates 34 homebuilding
facilities and 118 retail stores, and provides consumer financing for
purchasers of Champion-built homes. Further information can be found using
the company's website at http://www.championhomes.net .
Safe Harbor Statement
This news release contains certain statements, including statements
regarding operational strategy, cost reduction, profitability and competitive
position that could be construed to be forward looking statements within the
meaning of the Securities and Exchange Act of 1934. These statements reflect
the company's views with respect to future plans and events. 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
those discussions regarding risk factors are incorporated herein by reference.
SOURCE Champion Enterprises, Inc.
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Related links:
http://www.championhomes.net
Company News On-Call:
http://www.prnewswire.com/gh/cnoc/comp/110861.html
CONTACT:
Investors - Phyllis Knight, Chief Financial
Officer, +1-248-340-9090, or Colleen Bauman, VP, Investor
Relations, +1-248-340-7731, both of Champion Enterprises, Inc.;
or Media - Mark Semer or Michael Freitag, both of Kekst and
Company, +1-212-521-4800, for Champion Enterprises, Inc.
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