Press release from Business Wire
USEC Holds Annual Meeting of Stockholders
Thursday, June 27, 2013
USEC Holds Annual Meeting of Stockholders13:41 EDT Thursday, June 27, 2013
BETHESDA, Md. (Business Wire) -- USEC Inc. (NYSE: USU) today held its annual meeting of stockholders and reported on the American Centrifuge research, development and demonstration (RD&D) program being conducted at facilities in Ohio and Tennessee.
Stockholders voted by approximately 80 percent to approve a reverse stock split. Details regarding the reverse stock split can be found in a separate news release issued today and available at www.usec.com.
John K. Welch, USEC president and chief executive officer, said the aftermath of damage to Japanese reactors following the March 2011 earthquake and tsunami is still affecting the nuclear fuel industry. Many Japanese reactors remain idle and prices for low-enriched uranium fuel have declined over the past two years due to oversupply in the market. But despite these near-term challenges, “Looking out in the longer term, we think our industry has a bright future.”
Approximately 65 reactors are under construction worldwide, including four in the United States, and many of these international reactors will be completed over the next several years. More than 100 more reactors are on the drawing board, especially in China and emerging markets in Asia and the Middle East. “The American Centrifuge Plant will be coming on line at the right time to meet this new demand, and can be expanded in the future to meet growing demand in the 2020s,” Welch said.
“As concerns about climate change grow, nuclear power remains the only carbon-free source of 24/7 base load electric power. Nuclear power needs to be part of the solution and part of the world's energy mix. The environmental community is waking up to this fact, and that recognition could help drive growth for our industry,” Welch said. “It is our strong belief that American Centrifuge is the key to our future and its successful deployment will increase the value of the enterprise.”
Welch noted that USEC has made substantial progress with a two-year, cost-sharing research, development and demonstration program designed to enhance the technical and financial readiness of the centrifuge technology. The company plans to update its application with the DOE Loan Guarantee Office later this year.
To read a copy of Welch's complete remarks to shareholders, please go to Speeches in the Media section of the Company's website, www.usec.com.
During the meeting, stockholders voted to reelect seven directors for a one-year term. Stockholders also approved an advisory resolution on executive compensation and ratified the appointment of PricewaterhouseCoopers as the Company's independent auditors for 2013. A stockholder proposal regarding executive compensation was supported by less than 20 percent of the votes cast. The specific voting results will be provided in a current report on Form 8-K.
USEC Inc., a global energy company, is a leading supplier of enriched uranium fuel for commercial nuclear power plants.
This news release contains “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934 – that is, statements related to future events. In this context, forward-looking statements may address our expected future business and financial performance, and often contain words such as “expects”, “anticipates”, “intends”, “plans”, “believes”, “will” and other words of similar meaning. Forward-looking statements by their nature address matters that are, to different degrees, uncertain. For USEC, particular risks and uncertainties that could cause our actual future results to differ materially from those expressed in our forward-looking statements include, but are not limited to: risks related to the ongoing transition of USEC's business, including uncertainty regarding the transition of the Paducah gaseous diffusion plant and uncertainty regarding continued funding for the American Centrifuge project; the continued impact of the March 2011 earthquake and tsunami in Japan on the nuclear industry and on our business, results of operations and prospects; the impact and potential extended duration of the current supply/demand imbalance in the market for low enriched uranium; uncertainty regarding the timing, amount and availability of additional funding for the research, development and demonstration (RD&D) program and the dependency of government funding on Congressional appropriations; restrictions in our credit facility on our spending on the American Centrifuge project and the potential for us to demobilize the project; limitations on our ability to provide any required cost sharing under the RD&D program; uncertainty concerning our ability through the RD&D program to demonstrate the technical and financial readiness of the centrifuge technology for commercialization; uncertainty concerning the ultimate success of our efforts to obtain a loan guarantee from DOE and other financing for the American Centrifuge project and the timing and terms thereof; potential changes in our anticipated ownership of or role in the American Centrifuge project, including as a result of the need to raise additional capital to finance the project; the impact of actions we have taken or may take to reduce spending on the American Centrifuge project, including the potential loss of key suppliers and employees, and impacts to cost and schedule; the impact of delays in the American Centrifuge project and uncertainty regarding our ability to remobilize the project; the potential for DOE to seek to terminate or exercise its remedies under the RD&D cooperative agreement or the June 2002 DOE-USEC agreement; changes in U.S. government priorities and the availability of government funding, including loan guarantees; and other risks and uncertainties discussed in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K and quarterly reports on Form 10-Q, which are available on our website at www.usec.com. We do not undertake to update our forward-looking statements except as required by law.
Steven Wingfield, 301-564-3354
Paul Jacobson, 301-564-3399