BETHESDA, Md.--(BUSINESS WIRE)--Feb. 8, 2006--The Board of Directors of USEC Inc. (NYSE:USU) has voted to cease paying a common stock dividend in order to redirect those funds to reduce the level of external financing required for construction of the American Centrifuge Plant.
During its regular quarterly review of the dividend declaration, the Board discussed the best use of cash for the benefit of shareholders given the anticipated capital requirements of building the American Centrifuge Plant in 2007 - 2011. The Board noted that the dividend requirement over the next five years would be nearly $250 million. USEC believes these funds will produce a better return for shareholders by investing them in the American Centrifuge and therefore reduce external financing. The Board said it anticipates that USEC will not pay a dividend until this essential project is complete.
"USEC expects to have good financial results in 2006, but the Board is taking a longer term view of our capital requirements. We know the cost of deploying the American Centrifuge technology will be significant," said Chairman James R. Mellor. "Every dollar of internally generated cash that we use to build our state-of-the-art uranium enrichment plant is one less dollar USEC needs to raise in the capital markets. We plan to access the equity markets this year."
"Our foremost goal is to create shareholder value and the American Centrifuge is the best vehicle to generate strong financial returns for many years to come," said John K. Welch, president and chief executive officer. "We are taking steps to ensure that the American Centrifuge is the most efficient and cost-effective uranium enrichment plant in the world for the benefit of our shareholders and our customers, while supporting U.S. energy security interests."
This news release contains forward-looking statements (within the meaning of the Private Securities Litigation Reform Act of 1995) that involve risks and uncertainty. Economic, business, market, regulatory, technology and other factors could cause our actual future results to differ materially from those expressed in our forward-looking statements. More information about these factors is contained in our filings with the Securities and Exchange Commission, including our annual report on Form 10-K, which are available on our website www.usec.com. We do not undertake to update our forward-looking statements except as required by law.
USEC Inc., a global energy company, is the world's leading supplier of enriched uranium fuel for commercial nuclear power plants.
CONTACT: USEC Inc.
Investors:
Steven Wingfield, 301-564-3354
or
Media:
Elizabeth Stuckle, 301-564-3399
SOURCE: USEC Inc.