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SALT LAKE CITY (AP) — Nuclear power contractor EnergySolutions Inc. named a representative of its biggest shareholder in a management shake-up while cutting its profit outlook for the year, saying the company needed new leadership as the nuclear industry changes.
EnergySolutions' stock lost more than half its value in midday trading, plunging $1.95, or 54.3 percent, to $1.64. Earlier in the session the shares dropped to an all-time low of $1.55. The stock is down 23 percent over the past 12 months.
EnergySolutions has posted an annual loss for two years in a row and has been trying to cut costs. On Monday, the company again cut its earnings outlook for the year to $130 million to $140 million — but that amount excludes interest payments, taxes, the impact of declining asset values and other items. Last month, it predicted adjusted profit of $150 million to $160 million, down from the initial prediction of $155 million to $165 million in March. Analysts polled by FactSet predict $153 million by that profit measure.
The company, based in Salt Lake City, said shipments had slowed and measures to cut costs were taking longer to realize.
EnergySolutions is replacing CEO and President Val John Christensen with David Lockwood, a board member since November 2010 and a representative of EnergySolution's biggest shareholder. Lockwood, 52, is a partner at ValueAct Capital, which owns nearly 17 percent of EnergySolutions.
Lockwood is the former chairman and CEO of software company Liberate Technologies.
CFO William Benz will turn over his position to Greg Wood. Wood, 53, recently served as CFO at database and data analytics software provider Actian Corp.
Christensen will remain with EnergySolutions as a strategic adviser, with appointments effective immediately.
"The board determined that the time is right for new leadership, so that the company is positioned to take advantage of its full long-term potential in a changing industry environment," Chairman Steven Rogel said in a statement.