Enters 56 With Peak Backlog 120 Trib Jany 22-56 Up and Down the Street Utah Construction Enters ‘56 With Peak Backlog By Robert W. Bernick Tribune Business Editor Utah Construction Co., worldwide mining and contracting firm founded at Ogden, enters 1956 with the largest backlog of uncompleted work in its history, according to Allen D. Christensen president. He writes in the annual report of the company that net income of the parent firm for the year ended Oct. 31, 1955, amounted to $1,737,549, equivalent to $1.98 a share. This compares with $1,115,549 or $1.27 for the preceding fiscal term. The increased earnings were from greater profits by the parent company from its own mines and from higher dividends from affiliated companies in which Utah Construction holds stock. Mr. Bernick Besides the net profits for the current year, the company also counted a net addition to surplus of $956,846 arising from re-evaluation of company equipment to conform with a tentative agreement with the Bureau of Internal Revenue on depreciation rates allowable for the years 1951 through 1954. This brought the total additions to surplus to $2,694,395, or $3.07 a share, an increase of $1,578,846 over the preceding year, Mr. Christensen said. At end of fiscal year, net worth of the Utah-owned firm amounted to $18,763,113 ond $21.38 a share. This compares with $16,929,608 or $19.29 a share on Dec. 31,1954. “A decrease in profit levels for foreign mining took place in the early months of the fiscal year, was quickly arrested and profits restored to satisfactory levels by year’s end,” he reported. He said the total addition to the surplus of the parent company and its share of net earnings of its subsidiary and affiliated firms was $3,404,424, or $3.88 a share, of U-C stock. This is a drop of $556,784 from the previous year. “This decline was more than offset by an increase in the market value of the Permanente Cement Co. stock we hold. The Permanente stock was equal to $1.35 a share of Utah Construction Co. stock” in market value, Mr. Christensen noted. Backlog of uncompleted work and high level of business generally will tend to buoy earnings during 1956 for Utah Construction. The annual statement also reports that in August 1955, Utah Construction acquired a 25 per cent interest in Pima Mining Co. Union Oil Company of California holds 25 per cent interest, and the balance of the stock is held by Cyprus Mines Corp. “The Pima Mining Co. controls a copper deposit near Tucson, Ariz., it plans to develop as rapidly as possible by open pit methods. Utah Construction has been selected to construct the mill and to perform the preliminary stripping required to bring the mine into operation. Utah Construction also performed under contract certain engineering and geological studies in evaluating the property. From all appearances, the nature of the deposit and the market outlook for copper indicates that Pima Mining Co. will be a profitable venture,” Mr. Christensen said. He reported that “Utah Construction entered into an agreement giving it an option under certain terms and conditions to acquire 60 per cent of the capital stock of Luck Mc Uranium Corp. (with properties in Gas Hills District, Fremont County, Wyo.) The officials said “...the lands give favorable indication of containing extensive quantities of low grade uranium susceptible to open pit mining methods.” “Studies are under way to determine more accurately the nature and the extent of the uranium ore deposit, the metallurgical treatment required to handle the ore properly and designing of a mill and other matters which will determine the likelihood of developing the property as a profitable mining operation. This work has not progressed sufficiently far at this time to allow us to reach any definite conclusions.” Mr. Christensen reported that in addition to its wholly owned subsidiaries, Utah Construction owns stock in 37 affiliated companies. One in Permanante Cement Co.; five are concerned with mining ore shipping; two with heavy construction and in process of liquidation; one with grain elevator operations, and 28 with construction or ownership of housing developments. Probably the greatest - as yet - unrealized investment the firm has made has been in the Alameda reclamation area, where 36 million cubic yards of earth will be dumped into the San Francisco Bay to develop prime residential and commercial sites. Utah Construction also holds 5,000 acres in Moraga Valley in the Bay area. Some of the land has been sold at very favorable prices. We remain convinced that continuation of a program for acquiring strategically located lands offers an opportunity for further profits for your company,” Mr. Christensen said. URANIUM NOTES