United Nuclear Corp. of Falls Church plans to reorganize as a holding company, change its name and diversify, president Keith A. Cunningham told shareholders at the company's annual meeting Thursday.
Renamed UNC Resources Inc., the company will expand from uranium mining and processing into other energy-related businesses, Cunningham said at the meeting in Albuquerque.
The plan ran into a snag, however, when the company was unable to muster enough shareholder proxies to approve the name change and reorganization. The lack of the absolute majority needed to act on the proposal forced the company to adjourn action on that issue until a special meeting Aug. 9.
A spokesman said proxies covering the votes needed to approve the measure are expected by that date.
Cunningham told shareholders United Nuclear is well prepared financially for expansion or diversifications, with only 25 percent of its capital from long term debt and 75 percent in shareholder equity. The company recently converted its outstanding debentures into 1.3 million shares of common stock.
The chief executive forecast earnings for the current fiscal year will be "significantly better than last year" when the company had profits of [WORD ILLEGIBLE] per share on revenues of $255.5 million.
"We expect operating results to continue to improve," Cunningham said, predicting uranium prices will "rise moderately for the next year or so" because of increased demand and higher costs of production facilities.
Calling fiscal 1978 "our most successful year by far," he said the year's biggest success was winning a lawsuit against General Atomic and Gulf Oil, which freed 27 million pounds of United Nuclear's uranium production for other customers.
Cunningham said United Nuclear is now negotiating with the Tennessese Valley Authority for sale to TVA of part of UNC's interest in a joint venture. The sale would reduce the company's capital needs, provide it with cash and increase future earning projects, he added.