USEC / USU

About USEC

6903 Rockledge Dr., Bethesda, Md. 20817
www.usec.com | 301-564-3200 | Founded: 1998

Industry: Energy | Category: Public Companies

USEC named a new chief executive in September. Former General Dynamics executive John K. Welch took over the position from Chairman James R. Mellor, who had been doing both jobs since William H. Timbers left in December 2004.
USEC cut its headquarters staff of 132 by a third in September and later reduced its workforce in Kentucky and Ohio by 136 employees.
At the Ohio plant, the company encountered delays related to the quality of material, the performance of equipment and "compliance with recently issued regulatory requirements," the company said in a Securities and Exchange Commission filing. USEC slowed its timetable for completion of the plant.
A federal licensing board ruled against two opponents trying to participate in the hearing process for the Ohio plant's license application. The critics have appealed.
Meanwhile, a federal appeals court issued an order that could make it harder for USEC to compete with foreign suppliers of enriched uranium. The court reaffirmed a ruling that could prevent the federal government from imposing anti-dumping sanctions on reactor fuel subsidized by a foreign government and sold in the United States. At issue in the case were duties the Commerce Department imposed in 2002 on enriched uranium imported from France. The U.S. Court of Appeals for the Federal Circuit reaffirmed a March 2005 ruling that enrichment contracts should be treated as sales of services, not goods, thus placing them beyond the reach of certain trade laws.
In August, USEC completed its second accounting restatement in several months, in part correcting errors in the earlier restatement. USEC said that, as of Sept. 30, it had fixed weaknesses in its internal controls.
The company settled a dispute with former chief executive Timbers over his departure. The company maintained he was terminated for cause, but Timbers alleged the company terminated him without cause, and he sought damages of more than $36 million. Under the settlement, USEC agreed to pay Timbers $14.5 million in cash and to forgive a loan to Timbers of about $300,000.

Chairman: James R. Mellor

2005 Financial Data

Revenues: $1,559,300,000 | Net Income: $22,300,000
Asssets: $2,080,800,000 | Earnings Per Share: $0.26
Stockholder Equity: $907,600,000 | Annual Dividend: $0.55
Total employees: 2,762 | Local employees: 90