BETHESDA, Md., Apr 21, 2005 (BUSINESS WIRE) -- Shareholders of USEC Inc. (NYSE:USU) today heard Chairman and Chief Executive Officer James R. Mellor report on the Company's improved financial performance in 2004 and the bright prospects for the nuclear power industry.
Mellor pointed out that "the signs are literally everywhere" of a growing momentum in the renaissance of the nuclear power industry. He noted that several utilities in the United States are taking important steps towards building the first new nuclear power reactors. Three utilities are seeking early site licenses for future reactors from the U.S. Nuclear Regulatory Commission. And three utility groups, of which USEC is a part, are actively evaluating new reactor designs with financial assistance from the U.S. Department of Energy.
Separately, a U.S. utility is preparing to restart a large nuclear power reactor that has been idle for two decades, and two other utilities are strongly considering nuclear power as their leading choice for future electric generation. While these utilities plan to build new plants, the vast majority of nuclear utilities in the United States are seeking a 20-year extension of their operating licenses. These license extensions mean that many of these customers will need low enriched uranium fuel for at least the next three decades.
The growth of nuclear power is even stronger overseas, Mellor reported, as 25 reactors are under construction in 10 countries. China plans to quadruple its nuclear generation by building 40 new reactors in the next 15 years. India also has an aggressive plan to build new nuclear generating capacity, and new plants are being started in Finland, Japan and South Korea.
"Taken alone, each of these events signals positive momentum for our industry. Taken together, the revitalization of nuclear power worldwide is clear. That's why our company is so intently focused on playing a leading role in the future of nuclear power. And, that's why we are investing both our earnings and our energy into the American Centrifuge program," Mellor said.
Mellor reported that USEC continues to meet its progress milestones for demonstrating the American Centrifuge. The most recent milestone marks the beginning of manufacturing components for centrifuge machines that will be part of the demonstration facility.
Mellor also explained the process that the directors are using to recruit a new chief executive officer. "The Board is conducting this search in a systematic manner that I believe will result in finding a strong leader who can take USEC to the next level in its transformation," he said. "Our focus is to find the right person."
USEC's financial performance improved in 2004, Mellor said, as net income more than doubled from the previous year even as the Company's investment in demonstrating the American Centrifuge grew. The improvement was noted by Wall Street as the total return to shareholders, including dividends paid, was nearly 23 percent, which was more than double the total return from the S&P 500 stock index.
Prior to the meeting, Institutional Shareholder Services (ISS), a leading evaluator of proxy issues and corporate governance, recommended the election of all directors and that the ratification of the auditors be approved. ISS completed a comprehensive annual review of the corporate governance of the largest American companies and reported that USEC outperformed 91.2 percent of the companies in the Russell 3000 index.
During the meeting, shareholders elected the incumbent directors to a one-year term and ratified the selection of the independent registered public accounting firm for 2005. Approximately 95 percent of the outstanding shares were voted in person or by proxy.
To read a complete copy of Mellor's remarks, please go to USEC's website, www.usec.com. The speech can be accessed in the Newsroom section under Speeches.
This news release contains forward-looking information (within the meaning of the Private Securities Litigation Reform Act of 1995) that involves risks and uncertainty, including certain assumptions regarding the future performance of USEC. Actual results and trends may differ materially depending upon a variety of factors, which are described in USEC's periodic filings with the Securities and Exchange Commission. These SEC filings are available on USEC's website, www.usec.com.
USEC Inc., a global energy company, is the world's leading supplier of enriched uranium fuel for commercial nuclear power plants.
SOURCE: USEC Inc.
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