This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

USEC Reports Financial Results For The Fourth Quarter And Full Year 2011

Production costs declined $57.1 million or 7 percent in 2011 compared to 2010. This was primarily a result of a 10 percent reduction in overall production volume partially offset by a 4 percent increase in unit production costs. USEC purchased 11 percent fewer megawatt hours with the average cost per megawatt hour increasing 3 percent, reflecting higher fuel cost adjustments by the Tennessee Valley Authority (TVA) as well as the fixed, annual increase in the TVA contract price. The higher costs under the TVA contract were partially offset by supplemental power purchases in the summer months at lower market-based prices than the prior year. Purchase costs for the SWU component of LEU under the Russian Contract increased $20.5 million in 2011 compared to 2010 due to a 3 percent increase in the purchase cost per SWU. Purchase prices paid under the Russian Contract are set by a pricing formula that includes market-based price points.

In the contract services segment, cost of sales was $196.5 million in 2011, a decrease of $57.3 million or 23 percent. The net decrease was due primarily to the substantial completion of contract work at the former Portsmouth plant at September 30, 2011.

The gross profit for 2011 was $84.2 million, a decrease of $74.2 million or 47 percent over the previous year. The gross profit margin for the year was 5.0 percent compared to 7.8 percent in 2010. The lower gross profit margin primarily reflects lower margins in the LEU segment. In addition, the profitability of the contract services segment declined $11.5 million, primarily due to additional cold shutdown services performed at the Portsmouth site and contract fee recognition on certain contracts in 2010 as well as $5.1 million in pension plan and postretirement benefit plan curtailment charges in 2011. Gross profit from NAC was $8.8 million in 2011, an increase of $3.3 million year over year.

4 of 10

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 17,826.30 -279.47 -1.54%
S&P 500 2,081.18 -23.81 -1.13%
NASDAQ 4,931.8150 -75.9760 -1.52%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs