Profit and revenue at Canadian uranium producer Cameco Corp. fell sharply in the second quarter due to lower sales volumes in the uranium, fuel services and electricity businesses, the company announced Thursday.

Earnings of $150 million, or 42 cents a share, was down from $205 million, or 55 cents a share in the same quarter last year. That beat the average estimate of 40 cents a share expected by analysts surveyed by Thomson Reuters.

Revenue of $620 million in the quarter ended June 30 was down more than 14 percent from $725 million in the second quarter of 2007.

Cameco said revenue from its uranium business fell by $129 million, to $329 million, compared with the same period last year due to a 44 percent fall in sales volumes. However, the impact of the reduced sales volume was partly offset by a 27 percent rise in the Canadian dollar average realized selling price.

The company cautioned that the timing of uranium deliveries is at the discretion of customers and may vary significantly in each quarter.

Shares of Cameco traded at $31.21, up 22 cents, in morning trading Thursday.

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