Decision to Discontinue Operations at HomePride Finance Corp.
First Major Step in Effort to Accelerate Champion's Return to Profitability
AUBURN HILLS, Mich., July 31 /PRNewswire-FirstCall/ -- Champion
Enterprises, Inc. (NYSE: CHB), the world's leading homebuilder, today
announced that it has discontinued operations at HomePride Finance Corp., its
manufactured housing loan origination business. This action is the first
major step in Champion's effort to accelerate its return to profitability.
Al Koch, Chairman, President and Chief Executive Officer of Champion,
said: "As part of our ongoing comprehensive review of Champion's operations
and strategy, we determined that exiting the consumer loan origination
business is in the company's best interest. The current environment for
manufactured housing consumer lending has made it increasingly difficult for
us to derive value from this operation. We believe that the capital
previously earmarked for our lending operations can be deployed more
effectively today in the company's core manufacturing and retail businesses.
With this action we will immediately shift our focus to the formation of
strategic alliances with lending partners in order to provide financing
assistance for purchasers of Champion-built homes."
Based in Overland Park, Kansas, HomePride has been operated by Champion
since 2002 following its acquisition of CIT Group Inc.'s manufactured housing
loan origination business. The unit currently has approximately 30 employees.
HomePride will stop accepting applications for new consumer loans as of the
close of business today and will continue to process approved applications
through September 30, 2003.
As a result of this action, Champion presently estimates that it will
record a charge not to exceed $12 million in the third quarter of 2003,
including a non-cash charge of approximately $5 million primarily reflecting
the write-off of goodwill.
About Champion Enterprises
Champion Enterprises, Inc., headquartered in Auburn Hills, Michigan, is
the world's leading homebuilder and has produced more than 1.6 million homes
since the company was founded. The company operates 34 homebuilding
facilities and 115 retail stores. 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.
 back to top
Related links:
http://www.championhomes.net
Company News On-Call:
http://www.prnewswire.com/gh/cnoc/comp/110861.html
CONTACT:
Investors/Media: Phyllis Knight, Chief
Financial Officer, +1-248-340-9090, or Colleen Bauman, VP,
Investor Relations, +1-248-340-7731, both of Champion
Enterprises, Inc.
|
