EnergySolutions Plunges on Soft Outlook, Juggled Management

By Energy FOXBusiness

EnergySolutions (ES) cut its outlook on a slowing of shipments and altered its top management on Monday, causing its shares to nosedive 53% to a new low.

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The Salt Lake City-based provider of nuclear facility decontamination, fuel handling and waste disposal services named board member David Lockwood as chief executive, effective immediately.

Lockwood, who is a long-time operating executive, is replacing Val John Christensen, who will remain a strategic advisor to the company.

EnergySolutions also appointed Greg Wood, who has more than 30 years financial experience, as chief financial officer, succeeding William Benz.

"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," EnergySolutions' chairman, Steven Rogel, said in a statement.

Meanwhile, the company slashed its adjusted EBITDA forecast to a range of $130 million to $140 million, down from its May view of $150 million to $160 million.

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EnergySolutions attributed the weakened guidance to a slowdown in government and commercial shipments to Clive and the lengthy time it’s taking for cost reduction initiatives to kick in.