DESCRIPTION: The nation's largest independent uranium producer. Also mines coal and is one of the nation's two suppliers of reactor cores and components for the U.S. Navy's nuclear fleet (Nyse,m, P, Phila.). PROFITS PER SHARE (FISCAL YEAR ENDED MARCH 31, 1979): $4.04. DIVIDENDS: $4.2 million (40 cents a share: 45 cents a share was paid in calender 1979 but payouts since have been suspended temporarily). FOUNDED: 1962 as successor to company started in 1954. TOP EXECUTIVES: Keith A. Cunningham, president and chief executive; James R. Bancroft, Chairman; J. David Hann, executive vice president and chief operating officer.
UNC's performance in the recent year was affected adversely by a decision to write off a $25 million investment in the company's unranium extracting subsidiary, UNC Recovery Corp., which has been shut down since January. At the same time the company suspended dividend payments in order to conserve cash. UNC estimates that its subsidiary will show a net after-tax loss from discontinued operations of about $6 million for the year.In spite of that, UNC Resources expects to register a small profit for fiscal 1980, ended March 31. Because of a slowdown in construction and completion of nuclear power plants, the market for uranium has softened with production exceeding requirements. While costs for production have risen, the quoted market price of new uranium contracts has dropped. UNC has had to cut back on its uranium production in order to balance supply with demand and to reduce production costs.But company officials are counting on an increase in the use of nuclear power in the future. "Consequently, we expect an earlier turn around in the market than is generally perceived and do not expect the present weakness to persist beyond 1981," Cunningham says.