"The strong, systematic actions taken in 2001 reinforced the solid business foundation we began building a little over three years ago," Mellor said during the USEC Annual Meeting of Shareholders. "I'm pleased to report today that fiscal 2001 was clearly a year of accomplishments."
"Delivering on our commitments to investors and the improved outlook for nuclear power were a powerful combination on Wall Street," he said. For the fiscal year ended June 30, USEC's stock price rose 82 percent and the Company's attractive dividend pushed total return to shareholders for the year to 100 percent.
By delivering on a series of initiatives and making tough decisions, USEC is better positioned to build shareholder value, Chairman Mellor said. "A number of issues must still be resolved and there is more work to be done, but clearly we are headed in the right direction."
In his remarks to shareholders, President and CEO Timbers outlined the steps taken to control costs and detailed the path the Company is pursuing to demonstrate an advanced U.S. centrifuge enrichment technology. "We expect that these ongoing initiatives will help us to cut costs further. In the long run, we know that to stay competitive we must become a low-cost producer," Timbers said.
Working under a Cooperative Research and Development Agreement with the Department of Energy, the Company has updated and improved a centrifuge design proven by the government during the 1980s. "We have designed and developed a new generation of components and we are ready to demonstrate them in an advanced centrifuge machine. We expect that our centrifuge will have lower production costs than the machines we have evaluated, allowing us to move past the competition," Timbers said.
Timbers also addressed progress in a trade action brought by the U.S. Department of Commerce and the International Trade Commission against two foreign competitors, and progress on a new pricing amendment to the Russian HEU agreement.
A final determination in the trade action is expected in January 2002. "We believe our customers will see that we want what they want: reasonable prices, a diverse international supply of enriched uranium and a vibrant domestic marketplace. A strong and thriving USEC is good for America's nuclear energy industry. That strength will provide us with the resources we'll need to eventually deploy advanced technology," Timbers said.
USEC remains optimistic that a new pricing amendment to the Russian HEU agreement will be signed before the end of the year, he said. "The events of September 11th demonstrate just how important this non-proliferation program is for keeping these nuclear weapons out of the hands of rogue nations and terrorists," Timbers noted.
Shareholders at the annual meeting voted upon two items. Eight incumbent members of the Board of Directors were reelected for a one-year term and Arthur Andersen LLP was ratified as USEC's independent auditors for the 2002 fiscal year.
To read a complete copy of remarks to shareholders by Mellor and Timbers, go to USEC's website, www.usec.com, in the Newsroom section under Speeches.
This news release includes certain forward-looking information 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, including, without limitation, market demand for USEC's products, pricing trends in the uranium and enrichment markets, whether and at what level duties are imposed in the pending U.S. Government antidumping and countervailing duty investigations, implementation of the market-based pricing arrangement and deliveries under the Russian Contract, the availability and cost of electric power, obtaining necessary agreements with the Department of Energy ("DOE") regarding use of advanced technology and facilities, satisfactory performance of the technology at various stages of demonstration, USEC's ability to successfully execute its internal performance plans and maintain access to short-term funding. Additional information regarding the foregoing factors is contained in the Company's filings with the Securities and Exchange Commission.
USEC Inc., a global energy company, is the world's leading supplier of enriched uranium fuel for commercial nuclear power plants.
USEC website: www.usec.com
CONTACT: USEC Inc., Bethesda
Charles Yulish, (301) 564-3391
Ron Seeholzer, (301) 564-3225
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