The CFO of Fleetwood Enterprises is considering whether to recommend a large share buyback program on the board of directors. Fleetwood core businesses, manufactured homes and mobile homes are very sensitive to economic cycles and oil prices. After the Iraqi invasion of Kuwait, Fleetwood’s stock fell more than 20%, but Fleetwood seems strong enough to both survive a severe downturn and repurchase a large block of shares. Developed to allow a thorough review of the capital … Read more »

The CFO of Fleetwood Enterprises is considering whether to recommend a large share buyback program on the board of directors. Fleetwood core businesses, manufactured homes and mobile homes are very sensitive to economic cycles and oil prices. After the Iraqi invasion of Kuwait, Fleetwood’s stock fell more than 20%, but Fleetwood seems strong enough to both survive a severe downturn and repurchase a large block of shares. Designed to allow a thorough review of basic capital structure, dividend and share repurchase program theories, in the context of a large company, where both a potential crisis and a valuable opportunity.
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from
Timothy A. Luehrman,
William A. Teichner
Source: Harvard Business School
15 pages.
Publication Date: Jun 19, 1992. Prod #: 293013-PDF-ENG
Fleetwood Enterprises, Inc. – 1990 HBR case solution

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