UNC Resources of Falls Church is continuing to diversify its operations to make the company less vulnerable to swings in prices in the uranium market, the company's president and chief executive officer told shareholders yesterday at the annual meeting.
The most recent step in the program is aimed at completing acquisition of Normco Contractors Inc. and Hamer Industries Inc. The two Morgan City, La., offshore-oil-service companies will be merged under the Normco name and management. They are expected to add approximately $23 million in revenues to UNC.
The acquisition is part of a rebuilding program that followed in the wake of declining revenues caused in large part by continued weakness in the uranium market, President Keith A. Cunningham told shareholders. Uranium, which has been the company's largest revenue source, generally has been selling at prices below the cost of production. The company had a net loss of $34.2 million in fiscal 1980 after write-offs from asset sales.
Cunningham said that the company expects to show a modest operating profit for the year as a whole. In the first fiscal quarter ended June 30, UNC reported a loss of 7 cents a share compared with a loss of 39 cents a share in the same quarter a year ago, he noted.
Cunningham said that the company also is building its manufacturing and services divisions, building on the technological and management skills of its naval products division. That step is expected to produce revenues of $200 million to $250 million a year in product areas that command higher profit margins.
The company acquired National Automatic Tool Co. (Natco) of Richmond, Ind., in May. "We're holding discusions with other possible acquisition candidates in the manufacturing area, including Stadco, a precision manufacturing concern located in Los Angeles," said Cunningham.
On the raw-materials side of UNC's operations, the company is emphasizing precious-metals and oil and gas exploration and development rather than uranium. Cunningham said that preliminary results of the company's joint venture exploration program on two gold, copper and silver prospects in Alaska have been encouraging.
He also said that UNC has agreed to acquire the Cornucopia gold and silver mine near Baker, Ore., which has been closed since 1941.
Dan A. Colussy -- former president of Pan American World Airways who is now chairman and chief executive officer of the newly formed commuter airline Columbia Air Inc. -- was elected to UNC's board of directors.