Declining Earnings Forcing Cameco To Cut Costs

Declining Earnings Forcing Cameco To Cut Costs

Wednesday, November 12, 2008 at 13:44

Cameco’s third quarter earnings for 2008 are nearly half what they were last year.

The company’s net earnings over that period in 2007 were $275 million, but fell to $142 million this year.

The change is in the uranium business, which was thriving last year — but had much lower earnings this year because it was affected by higher costs and lower production.

Cameco says the recent global market turmoil has taken a toll on the company, but says it will weather the storm by reducing costs and deferring any projects that cannot be funded internally.