Cameco Profit Trails Analysts’ Estimates as Uranium Price Drops

Cameco Corp. (CCO), the world’s third- largest uranium producer, reported first-quarter profit and revenue that trailed analysts’ estimates after a decline in the price of the raw material in nuclear-reactor fuel.

Net income fell to C$9 million ($8.9 million), or 2 cents a share, from C$129 million, or 33 cents, a year earlier, Saskatoon, Saskatchewan-based Cameco said today in a statement. Profit excluding one-time items was 7 cents a share, missing the 8-cent average of 14 estimates compiled by Bloomberg. Sales declined to C$444 million from C$466 million, less than the C$473 million average of six estimates.

The price of uranium for immediate delivery has slumped 40 percent since the March 11, 2011, earthquake and tsunami in Japan led to a meltdown at Tokyo Electric Power Co.’s Fukushima Dai-Ichi nuclear power plant. In response to the disaster, Japan suspended its fleet of reactors while Germany canceled license extensions, shut down some of its oldest nuclear plants and ordered the others close by 2022.

“Fukushima is still a major factor in the uranium market,” Rob Chang, a Toronto-based analyst at Cantor Fitzgerald LP, said in a telephone interview before the results were released. “On top of that, commodity prices around the world have been dragged down by worries about global growth and Chinese demand for raw materials.”

Kazatomprom, Kazakhstan’s state-owned producer, and Paris- based Areva SA (AREVA) are the biggest uranium miners, according to the World Nuclear Association.

(Cameco scheduled a conference call to discuss results at 1 p.m. New York time at +1-877-240-9772 or +1-416-340-8530.)

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