Champion Enterprises, Inc. Highlights Outlook at Annual Meeting
NEW YORK, April 28 /PRNewswire/ -- At today's Annual Meeting of Shareholders of Champion Enterprises, Inc. (NYSE: CHB - news), the outlook for the company's manufacturing and retail businesses was highlighted. Walter R. Young, Jr., Chairman, President and Chief Executive Officer, said, ''In 1997 we achieved record sales and earnings and strengthened our position as the manufactured housing industry leader. We paved the way for future growth by building six new manufacturing facilities and initiating an exciting and aggressive growth strategy as a retail marketer of quality homes.''
Young explained, ''We continue to expand manufacturing operations with planned 1998 capital expenditures of up to $39 million for internal expansions and the construction of new facilities. In March 1998 we began production at a new plant in North Carolina, where we should have another location on line during the second quarter. Construction of a facility in Texas should begin early this summer, bringing the total number of manufacturing facilities to 58. We also are committed to improving manufacturing efficiencies and increasing operating margins.
''Last fall we announced a strategy to enhance growth by the acquisition of well-run manufactured housing retailers. These 'platform' acquisitions would then expand their operations to achieve a level of $1 billion in retail revenues by the year 2000. Related goals include improving the buying experience for retail customers and enhancing profits through better merchandising techniques, improved efficiencies, control of costs and improved service. We have made substantial progress in implementing this strategy by acquiring eight retail organizations to date. When combined with our existing stores, we now have approximately $450 million in annual retail revenues. We are already the third largest manufactured housing retailer in the country with 148 sales centers in 21 states. In 1998 we plan to open 25 new sales locations and continue to pursue attractive acquisition opportunities,'' Young said.
Young continued, ''The year is off to a great start with record first quarter sales and profits. Earnings per share from continuing operations were up 33 percent, while sales revenues increased 28 percent. For the quarter, our wholesale shipments grew 14 percent from a year ago. Industry wholesale home shipments were up 3.2 percent for the first two months of 1998 and we believe retail sales were up even higher. From all indications, retail inventories appear to be lower than last March and retail traffic is strong. Industry analysts' estimates for 1998 industry wholesale shipments range from 2 to 5 percent growth over 1997.
''Increasing shareholder value is our number one priority. We are committed to a long-term goal of a minimum 15 percent compound annual growth in earnings per share. Our balance sheet remains strong and with a new bank credit facility expected to be completed in May, we will have ample capital to implement our manufacturing and retail growth strategies,'' concluded Young.
At today's annual meeting, shareholders re-elected the Board of Directors which include: Robert W. Anestis, Frank J. Feraco, Selwyn Isakow, George R. Mrkonic, Johnson S. Savary, Robert L. Stark, Carl L. Valdiserri, and Walter R. Young, Jr. In addition, an amendment to the company's 1995 Stock Option and Incentive Plan was approved to increase the number of shares available under this plan by 1.9 million. Champion encourages employee stock ownership in the company, thus aligning employee and shareholder interests. |
