The closing of 12 additional retail sales centers and
the consolidation of production in Alabama also announced
AUBURN HILLS, Mich., Dec. 30 /PRNewswire-FirstCall/ -- Champion
Enterprises, Inc. (NYSE: CHB), a leader in the factory-built housing industry,
today announced that it has sold four of its retail sales centers, three of
which are located in Kentucky and one in Texas. The company also entered into
an agreement to sell a retail location in South Carolina, the sale of which is
expected to be completed in early-2005. Champion expects to record no
significant gain or loss as a result of these transactions, which have a
combined cash selling price of approximately $3.2 million. The company
entered into long-term distribution agreements with the buyers of these
locations. Additional details of these transactions were not disclosed.
In addition, the company also announced the closing of 12 retail sales
centers in seven states and a homebuilding facility in Boaz, Alabama.
Production at this facility will be transferred to an idle plant in Guin,
Alabama, to consolidate production in the state into a single operation. The
total number of manufacturing plants in operation will remain unchanged at 29
facilities in 14 states and two Canadian provinces. Following completion of
the transactions announced today, the company's retail operations will consist
of 60 sales centers in 12 states. During the fourth quarter ending January 1,
2005, the company expects to record pretax restructuring charges of
approximately $6 million, including an estimated $5 million of non-cash asset
impairment charges.
Champion's President and Chief Executive Officer, William C. Griffiths,
commented, "In light of continuing market softness, particularly in the South,
we are further adjusting both retail and manufacturing capacity in our efforts
to improve profitability and will continue to focus on additional improvements
next year. Similar to the sale of our western retail operations in October,
the sale of these five retail locations generated cash and had no material
impact on results. Also, the buyers retained certain employees and our core
manufacturing operations gained new strong, independent distribution
partners."
About Champion
Champion Enterprises, Inc., headquartered in Auburn Hills, Michigan, is
one of the industry's leading manufacturers and has produced over 1.6 million
homes since the company was founded. Independent retailers, including more
than 835 Champion Home Center locations, and approximately 500 builders and
developers sell Champion-built homes. Further information can be found at the
company's website, http://www.championhomes.net .
Forward Looking Statements
This news release contains certain statements, including statements
regarding improved operations and profitability, future plans, estimated
restructuring and impairment charges, and gain or loss from these
transactions, 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, 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 SEC filings, 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.
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Related links:
http://www.championhomes.net
Company News On-Call:
http://www.prnewswire.com/comp/110861.html
CONTACT:
Investor and Media Contacts: Phyllis A.
Knight, Chief Financial Officer, +1-248-340-9090, or Colleen T.
Bauman, Investor Relations, +1-248-340-7731, both of Champion
Enterprises, Inc.
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