The Post 200 -- Industry Breakouts
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The war in Iraq and the fight against terrorism guaranteed another year of healthy growth and profits for Washington area aerospace and defense contractors. Revenue grew 12 percent at top-ranked Lockheed Martin, for example, and 37 percent at mid-sized information technology provider SRA International. Companies grew by mergers -- Argon ST was created from the combination of Fairfax-based Argon Engineering Associates Inc. and Newington-based Sensytech Inc. -- and by acquisitions. Not all went smoothly. ManTech International's purchase of a company that processed security clearances did not produce the expected burst in revenue. And analysts predict some makers of costly military hardware, such as planes and ships, may face budget cutbacks over the next few years. (See all aerospace/defense firms in the Post 200.)
MedImmune remained the revenue leader by far among area biotechnology companies, although a flu vaccine shortage focused unsought attention on its FluMist nasal vaccine, which the company is working to improve. Other companies that are out of the labs with revenue-producing products included Martek, with its nutritional supplement, and Digene, with its test to screen for a virus that can cause cervical cancer. Celera Genomics slipped in the rankings as it worked to switch from a seller of genetic information to a drug producer. (See all biotech firms in the Post 200.)
Watson Wyatt remained the sector's leader even though it had a tough year with declining revenue. The company announced a merger with its European partner that it said should produce new revenue in 2005. Other consulting firms benefited from the demand for help in meeting new corporate governance standards. Vastera Inc., which helps companies process and track international trade, dropped off the list after its sale to a unit of J.P. Morgan Chase. (See all consulting/professional services firms in the Post 200.)
Sector leader AES Corp. had 12.7 percent revenue growth, and 2003's loss reversed as the worldwide power provider continued its comeback from near-bankruptcy in 2002. It also moved into wind power. Revenue at second-ranked Pepco Holdings Inc. declined slightly, but its profit more than doubled. On the other hand, revenue at WGL Holdings Inc., parent of Washington Gas Light Co., grew slightly, but profit declined. (See all energy firms in the Post 200.)
Mortgage backer Freddie Mac returned to the list as it struggled back from an accounting scandal, leading the sector in revenue. Second-ranked Capital One Financial spent heavily on marketing but also sought to diversify, buying a New Orleans-based bank. SLM, known as Sallie Mae, severed its last government ties. Two companies, Fieldstone Investment and Intersections, were new to the list. The usual leader of the sector, Fannie Mae, is on the sidelines as it unravels an accounting scandal. (See all financial services firms in the Post 200.)
GTSI, which sells information technology products to government agencies, remained the top performer in this group. Reflecting strong federal and state demand, GTSI broke the $1 billion mark in sales for the first time. Second-ranked Maximus, which sells software and consulting services to state and local government, remained the profit leader, with earnings of $38.8 million. One change in rankings: VSE passed PEC Solutions in revenue. (See all financial services firms in the Post 200.)
The biggest got bigger, as Coventry Health Care bought First Health Group Corp., extending its reach to all 50 states. Second-ranked Sunrise Senior Living expanded its portfolio of homes for seniors in the United States, Europe and Canada. One newcomer to the list: PRA International of Reston, which runs drug trials for pharmaceutical and biotech companies, went public in November. (See all health care firms in the Post 200.)
Marriott International, the world's biggest hotel company, had an earnings increase of 18.7 percent and revenue growth of 12.1 percent as the travel business completed its comeback from the slump caused by the Sept. 11, 2001, terrorist attacks. Other lodging companies reported that operating income was up but earnings were down because of debt expense or acquisition costs. Humphrey Hospitality Trust left the list because it moved to Nebraska. Frozen-food maker Cuisine Solutions joined the list as sales recovered from a prolonged downturn. (See all hospitality/travel firms in the Post 200.)
Last year's top-ranked company in this sector, technology consultant BearingPoint, is missing from this year's list because it has not yet filed its annual financial report as it struggles to repair flaws in its internal systems. Last year's second-ranked company, American Management Systems, was split in two and sold. That leaves Micros Systems as the leader, with revenue and earnings up from a year earlier. Newcomers to the category are District-based Blackboard, which went public last year, and two companies that moved to Reston from California: Tier Technologies, last year; and QuadraMed, at the end of 2002. (See all IT firms in the Post 200.)
The leaders in this sector -- toolmaker Danaher, building materials supplier Lafarge North America and audio equipment producer Harman International Industries -- reported significant increases in revenue and profit, demonstrating that manufacturing still pays off if the product is in demand. Specialty chemical maker W.R. Grace remained mired in bankruptcy, and civil and criminal court proceedings stemming from health problems associated with its past production of asbestos. One company added to the list this year: cabinet maker American Woodmark. (See all manufacturing firms in the Post 200.)
Diversification remained a goal for area media companies. Top-ranked Gannett bought a chain of Midwestern newspapers but also acquired a company that puts TV screens in elevators. The Washington Post Co. was buoyed by its education-services subsidiary Kaplan Inc. and last year bought the online magazine Slate. Radio One bought the company founded by morning show host Tom Joyner. And XM Satellite Radio continued to lose big money even as it attracted more subscribers and invested in costly programming, such as a deal with Major League Baseball. (See all media firms in the Post 200.)
CompuDyne led this mixed-bag category last year, but its revenue slumped and a year-earlier profit turned to a loss as state and local governments cut back on construction of prisons and jails that use its security products. Fairchild settled a shareholder lawsuit that aired allegations about lavish executive spending, and it turned a profit after a losing year in 2003. Strayer Education continued to expand its network of for-profit campuses for adult education, as revenue jumped almost 25 percent and profit grew more than 22 percent. Missing from the list: Spherix Inc., a hybrid online reservation and biotechnology company, which did not report enough revenue to qualify.
It was another profitable year in real estate, from top-ranked NVR, the nation's sixth-biggest home builder, to mall developer and operator Mills, which moved from fourth to second in the category. Rouse, a legendary name in commercial real estate and the development of residential communities, left the list this year after it was bought by mall owner General Growth Properties. New to the list are Comstock Homebuilding, which went public in December, and fast-growing Highland Hospitality. (See all real estate firms in the Post 200.)
MCI, back from bankruptcy court, tops the list of area telecom companies based on revenue, though the company had a $4 billion loss for the year. Last year's top-ranked company in the sector, Nextel Communications, reported strong increases in revenue and earnings as it works to complete a planned $35 billion merger with Sprint Corp. Other telecom players struggled to find a profitable niche: Primus Telecommunications tried to become a player in Internet phone calling; XO Communications bought a rival to almost double its customer base; Broadwing changed its name from Corvis and its focus from equipment making to selling high-speed business connections; and USA Mobility was created by combining the two largest survivors in the declining business for pagers. (See all telecom firms in the Post 200.)
Tough times continued in the airline business -- and not solely for the old-line carriers burdened by high operating costs. US Airways, one of the traditional carriers, struggled along in its second trip through bankruptcy court, and is now engaged in merger talks. FLYi, the Dulles reincarnation of Atlantic Coast Airlines, also experienced financial turbulence. The company's new, low-cost Independence Air was hampered by high fuel prices and lower-than-expected passenger sales, as established competitors slashed fares to head off the upstart carrier. (See all transportation firms in the Post 200.)
Click here for a chart of the top locally based banks.
Banking in Washington: The banking business in the Washington region (with its $119.8 billion in deposits) is dominated by out-of-state institutions. Click here for a chart showing the market share in the Washington area of all retail banks and thrifts operating here, based on the most recently available deposit data from the Federal Deposit Insurance Corp.
Mars Inc., the family-owned candymaker based in McLean, occupies its usual spot as the area's largest privately owned company by far, with insurer Geico again in second place. Two local auto dealers, Darcars Automotive Group and Ourisman Automotive Enterprises, participated in The Post 200 survey this year, joining Rosenthal Automotive on the list of the top 15 private companies.
Click here for a chart of the top private companies in the Washington area.
Constellation Energy Group, the parent of Baltimore Gas and Electric, again ranked first in this list of Maryland companies based outside the Washington area. Constellation reported record earnings, while the second-ranked company, toolmaker Black & Decker, reported a 20 percent jump in sales. Sylvan Learning Systems, on the list in past years, has morphed into two companies on the list: Laureate Education Inc. took over Sylvan's career-oriented universities abroad, and Educate Inc. bought its after-school tutoring programs. Also gone: Allegheny Energy Inc., which moved from Hagerstown to Greensburg, Pa.
Click here to view profiles of the top Maryland companies headquartered outside of the Washington area.
Dominion Resources remained atop the list of Virginia-based companies outside the Washington area, its revenue and profit improving significantly from 2003, when Hurricane Isabel put a big dent in its earnings. Second-ranked Circuit City Stores returned to profitability after big losses in 2003, but the company had to fend off a takeover attempt by a hedge fund that said it could do a better job of catching up with rival Best Buy. Among changes lower on the list: Ethyl Corp., the maker of petroleum additives, has been replaced by NewMarket Corp., a holding company created last year that owns Ethyl. Tredegar Corp., which was not on last year's list, is a former division of Ethyl.
Click here to view profiles of the top Virginia companies headquartered outside of the Washington area.
Most of its jobs are neither high-tech nor high-paying, but McDonald's remained the area's top employer last year, with 32,000 local employees making and selling burgers, fries and salads. Ahold USA moved to second on the list from fifth, even though its Giant Food supermarket chain cut some positions, apparently because of a more complete accounting of jobs in the area for its U.S. Foodservice Inc. and online grocer Peapod. Discount giant Wal-Mart Stores has been expanding its presence in the region. That pushed media conglomerate Time Warner Inc., owner of Dulles-based America Online, off the list of top 10 employers. Time Warner has 5,143 local employees after some downsizing at AOL.
Click here for a chart of Major Employers in the Washington region.
Conspicuously missing from The Post 200 this year are a number of major companies with well-known names. Two of them -- the mortgage giant Fannie Mae, and technology consultant BearingPoint -- have yet to figure out their finances for 2004. Two others -- developer and mall owner Rouse Co. and satellite operator Intelsat Ltd. -- were among a number of companies sold over the past year.
Note: Some profile pages display an asterix (*) after the company name. This means the company provided data for calendar year 2004 although its fiscal year differs.