USEC Inc.

6903 Rockledge Dr.

Year founded: 1998

Industry: Energy

Post 200 Category: Top 125 Companies

Revenue: $1.42 Billion

Net Income/Loss: $23.50 Million

Earnings per share: $0.28

Dividend: $0.55

Stockholder equity: $924.60 Million

Auditor: PricewaterhouseCoopers LLP

Stock: USU

Assets: $2.00 Billion

Market capitalization: $1.24 Billion

52-week high: 18.69 3/22/2005

52-week low: 6.88 4/30/2004

Chairman and CEO: James R. Mellor

COO: Lisa E. Gordon-Hagerty

Employees: 2871

Local employees: 118

Description: USEC is the only domestic maker and seller of enriched uranium fuel to commercial nuclear power plants, extracting about half its processed uranium supply from Russian nuclear warheads under a U.S.-sponsored program to reduce weapons stockpiles. The other half comes from its production plant in Paducah, Ky.

Developments: USEC had its ups and downs in 2004: It reported a loss of $9.8 million for the first quarter, a profit of $7.4 million for the second, a loss of $2.3 million for the third, and a profit of $28.2 million for the fourth. In February of this year, it delayed the release of its fourth-quarter and year-end earnings while it sorted out a minor restatement. The delayed results, issued in March, showed USEC's profit for 2004 rose to $23.5 million from a restated $9.8 million for 2003. Revenue for 2004 was $1.42 billion, down from restated 2003 revenue of $1.45 billion. The biggest news of last year was the Dec. 14 announcement that William "Nick" Timbers, chief executive for the past seven years, was leaving the company. Board Chairman James R. Mellor stepped in to serve as interim chief executive. USEC officials gave no explanation for Timbers's departure, though analysts speculated that the board wanted to take the company in a different direction. Depending on whether Timbers can prove he was fired without cause, the company said it may have to pay him $18 million in cash and benefits. USEC has been working on its first centrifuge plant to enrich uranium. USEC currently uses a gaseous diffusion method that is outdated compared with the technology used in a number of other countries. The new facility in Piketon, Ohio, called the American Centrifuge Plant, is expected to cost up to $1.5 billion. In the first nine months of 2004, USEC spent $36.4 million on a demonstration project, which it plans to operate this year. USEC wants to begin construction on the plant in 2007. The project faces some opposition by residents in Piketon, a number of whom have applied to intervene in USEC's application for a license from the Nuclear Regulatory Commission. A competitor, European consortium LES, is a year ahead of USEC in its plans to build a centrifuge plant in New Mexico. While being ahead has given LES an edge in landing preliminary contracts, LES officials said demand for enriched uranium should be sufficient to keep both the LES and USEC centrifuge plants in business for years to come.

Executive Compensation
Former President and CEO: William H. Timbers
Total Cash: $767,384.00
Total Compensation: $3,771,960.00