Why the Fleetwood (ASX:FWD) share price is rising this morning

The Fleetwood Corporation Limited (ASX: FWD) share price will be on watch this morning after announcing the appointment of its new CEO.

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The Fleetwood Corporation Limited (ASX: FWD) share price is rising this morning after announcing the appointment of its new CEO. At the time of writing, the Fleetwood share price is trading at $2.76, up 2.6%.

Let's take a closer look at the announcement. 

hand on touch screen lit up by a share price chart moving higher

Image source: Getty Images

New CEO succession

The Fleetwood share price is on the move today following the change of its leadership group.

According to this morning's release, Fleetwood advised it has appointed Mr. Bruce Nicholson as its new CEO. An experienced building and construction materials executive, Mr. Nicholson will formally become head of the company on 1 July 2021. This follows former managing director and CEO Mr Brad Denison departure in November last year.

Current interim CEO Mr. Andrew Wackett will return to his original role as chief financial officer and joint company secretary. This will take place once Mr. Nicholson begins his tenure at Fleetwood.

The company went on to highlight Mr. Nicholson's substantial experience. In particular, noting his aptitude for delivering results in difficult trading environments. Mr. Nicholson worked on projects in both Australia and New Zealand, as well as North America and Europe.

Most recently, he held the position of CEO and managing director of Waco Kwikform Group. The business is a leading supplier of scaffolding and falsework for construction, residential, and industrial markets throughout the ANZ region.

Furthermore, Mr. Nicholson also worked at Fletcher Building Group's ROCLA concrete piping and products business as managing director. His most notable achievement included heading up the turnaround of a complex manufacturing operation.

Management commentary

Fleetwood chair, John Klepec, touched on Mr Nicholson's being the right person for the top job, saying:

Bruce has a proven track record over an extended period in both major national established businesses and leading the turnaround of operations.

We are focussed on fully integrating our acquired Modular Building businesses across Australia whilst also profitably seizing the growth opportunity that currently presents. The modular construction model will transform to efficient manufacturing production systems and Bruce's depth and breadth of experience are required for Fleetwood to be a major player.

He is a highly accomplished performance-oriented executive delivering results through customer partnerships, functional excellence and transformation.

About the Fleetwood share price

Over the past 12 months, the Fleetwood share price has risen over 120%, with year-to-date improving 29%. The company's shares are also within the sights of hitting its 52-week high of $2.89 reached in February this year.

On valuation grounds, Fleetwood commands a market capitalisation of around $254.5 million. Additionally, the company has over 94.6 million shares outstanding.

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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