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BETHESDA, Md. - William H. Timbers, president and CEO of USEC Inc., the world’s leading supplier of enriched uranium fuel, spoke yesterday about plans to increase shareholder value and about opportunities for the company’s future.
In his remarks to shareholders at the Company’s annual meeting, Timbers outlined the vision and goals for USEC:
"We will complete the realignment and strengthening of our core business, take actions necessary to compete profitably and seize opportunities for diversification and growth," Timbers said. He expressed optimism about USEC’s ability to capitalize on the changing electricity and nuclear industries with new business relationships and innovative marketing.
USEC is exploring working partnerships with the U.S. Department of Energy on several fronts, including development of gas centrifuge uranium enrichment technology, future processing of depleted uranium and potential decommissioning and decontamination of nuclear facilities. According to Timbers, these activities could result in an increase in shareholder value while continuing to support U.S. national security interests.
Timbers stated that the Company expects to make a decision in 2001 regarding advanced technology. New technology options include gas centrifuge and SILEX, a laser enrichment process currently being developed under USEC sponsorship.
USEC is the executive agent for the U.S. government’s nuclear non-proliferation program that converts Russian nuclear warheads into fuel for nuclear power plants. To date, the equivalent of more than 4,000 warheads has been transformed as part of a 20-year contract. USEC has reached an agreement-in-principle with Russia on new market-based pricing and that agreement awaits government approval.
USEC’s Chairman of the Board, James R. Mellor, presided over the meeting. Shareholders re-elected the current six-member Board of Directors to a one-year term, and Arthur Andersen LLP was approved to continue as the Company’s independent auditing firm.
Mellor, former chairman and CEO of General Dynamics, spoke of USEC’s strong fundamentals, including $6 billion in sales backlog, robust cash flow and almost $1.5 billion in revenue in fiscal year 2000. He commended the management team on its work during the past year to build a positive relationship with the U.S. government in an effort to enhance shareholder value.
In his remarks, Mellor noted several of the Company’s achievements during the year, including USEC’s decision to consolidate enrichment at a single facility in June 2001 in order to lower production costs. Another achievement was the 10-year power supply contract signed with TVA, which provides electricity to the Paducah, Kentucky plant and eliminates price risk during the summer months when electricity prices typically peak. He also noted that a new, innovative marketing relationship with Enron has been established.
After taking questions from shareholders in attendance, Mellor closed the meeting by pointing to developments in the nuclear industry and to the Company’s eagerness to compete fairly and aggressively in a difficult business environment. "Although we have made significant progress, there is much yet to do. We are grateful to all of our shareholders for their loyalty and pledge uncompromising determination in the future," said Mellor.
A copy of the remarks by both Timbers and Mellor is available on the USEC website, www.usec.com in the News/Speeches section.
USEC Inc., a global energy company, is the world’s leading supplier of enriched uranium fuel for commercial nuclear power plants.
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