Exhibit 99.1
Contacts:
Investors Media
Phyllis Knight, Chief Financial Officer Mark Semer or Michael Freitag
(248) 340-9090 Kekst and Company
Colleen Bauman, VP, Investor Relations (212) 521-4800
(248) 340-7731
AL KOCH TO BE NAMED CHAIRMAN OF
CHAMPION ENTERPRISES, INC.
KOCH ALSO TO SERVE AS INTERIM PRESIDENT AND CEO TO LEAD
DEVELOPMENT OF STRATEGY TO ACCELERATE RETURN TO PROFITABILITY
AUBURN HILLS, MI, June 30, 2003 - 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, 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
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.
# # #