U.S. Enrichment stock makes Big Board debut

MARYLAND WATCH

July 24, 1998

In their first day of trading on the New York Stock Exchange, shares of Bethesda-based U.S. Enrichment Corp. changed hands at $14.25 each, unchanged from the initial offering price.

In the privatization of U.S. Enrichment, the government gains $1.9 billion from selling the Cold War symbol, which was developed in the 1950s to produce uranium for nuclear weapons and, later, reactor fuel for Navy submarines and ships.

Now, its plants in Paducah, Ky., and Piketon, Ohio, convert uranium into fuel for nuclear reactors to produce electricity for utilities in 14 countries.

The company, which competes primarily with three producers in Europe, controls 75 percent of the North American market and 40 percent of the world market, but the need for its product is expected to decline slightly in the United States and Western Europe over the next 15 years.

Nevertheless, the company has billions of dollars in contracts into the next century.

Revenue for the past fiscal year is expected to be $1.4 billion, with profit of up to $155 million.

Pub Date: 7/24/98

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