USEC Inc. (NYSE:USU) today announced that it plans to initiate "reduce the planned escalation of project construction and machine manufacturing activities" at its uranium enrichment plant in Piketon, Ohio. The company cited delays in securing a government loan guarantee as the culprit.
USEC applied for the loan under the terms of the Energy Policy Act of2005, and the outgoing Bush administration failed to select projectsfor loan guarantees before leaving office. The company said it is"strongly encouraged" by plans for the Obama administration to"accelerate" the loan guarantee approvals. The company has invested$1.2 billion in the new plant is seeking a guarantee for a loan of $2billion. Under the terms of the Energy Policy Act, the funds areavailable until the end of September 2009.
USEC did not specify the impact on the project schedule other than tosay that as more information on the loan becomes available, the company"will be better able to quantify changes to cost and schedule." USECalso plans to reduce overhead by reducing cash bonuses for 2008,freezing executive pay, limiting merit increases and calling a halt tonew hiring.
Shares of USEC are up slightly on the news.
Paul Ausick
February 5, 2009
The Average American Is Losing Momentum On Their Savings Every Day (Sponsor)
If you’re like many Americans and keep your money ‘safe’ in a checking or savings account, think again. The average yield on a savings account is a paltry .4%1 today. Checking accounts are even worse.
But there is good news. To win qualified customers, some accounts are paying more than 7x the national average. That’s an incredible way to keep your money safe and earn more at the same time. Our top pick for high yield savings accounts includes other benefits as well. You can earn a $200 bonus and up to 7X the national average with qualifying deposits. Terms apply. Member, FDIC.
Click here to see how much more you could be earning on your savings today. It takes just a few minutes to open an account to make your money work for you.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.