“We continue to strengthen the project by adopting the best operating practices developed over 50 years of safe operations at the Paducah plant and by working closely with our strategic investors to optimize our execution of the project,” says John Welch, USEC president.
BETHESDA, Md. – USEC Inc. reported a net loss of $21.2 million or 18 cents per share for the quarter ended June 30, 2011, compared to net income of $7.2 million or 4 cents per diluted share (6 cents per basic share) for the second quarter of 2010. For the six-month period ended June 30, 2011, USEC reported a loss of $37.8 million or 31 cents per share compared to a loss of $2.5 million or 2 cents per share in the first half of 2010.
The financial results for the quarter and six-month period ended June 30, 2011, reflect the anticipated decline in the gross profit margin and higher advanced technology costs associated with the American Centrifuge project year-over-year that were not offset by a cost-sharing program that was in place in 2010 with the Department of Energy (DOE).
“Although our bottom line was a net loss, the quarterly gross profit of $33 million was higher than initially projected. Our efforts to manage costs are expected to result in a gross profit margin for the full year of 6 percent, up from the 4 to 5 percent in our original guidance,” said John K. Welch, USEC president and chief executive officer. “Our continued investment in the American Centrifuge project resulted in the net loss, but that spending keeps the project in a condition where it can be ramped up again more quickly and at less cost than if it was fully demobilized.
“Our ongoing discussions with DOE on a loan guarantee were not concluded in July as we had hoped. These discussions have made it clear that DOE wants to see the project move forward. We believe they recognize the national significance of the project, the importance of having a U.S.-owned and operated enrichment plant, the long-term implication for both nuclear energy and national security, and the project’s economic benefits, including approximately 8,000 jobs during construction,” Welch said.
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Source: USEC, Inc.
Image: USEC, Inc.