The growing chorus of warnings about a national recession in the near future is not being heard in the Washington metropolitan area.
Although not entirely obivious to national business trends, local business leaders look over their books and conclude that the area economy continues to expand. Profits of local companies have followed the same trend.
Moreover, the number of substantial corporations based here is growing. The Washington Post's annual report on major firms and quasigovernment corporations here has been expanded from 50 to 60 this year, reflecting the growing proportion of the area economy in the private sector. Significantly, as 1978 ended, new employment figures showed that the employes in the area services industry now outnumber federal government workers.
Most of the Top 60 firms reported record results in their latest fiscal years, and many increased their dividend rates to investors.
Companies listed here are publicly traded or private firms with headquarters in the Washington area, and are the largest firms in terms of assets, revenues, employes or influence within their economic sector. Annual financial figures are for calendar 1978 unless otherwise noted. If a company is traded publicly, its exchange is listed in parentheses - NYSE for New York Stock Exchange, Amex for American Stock Exchange, P for Philadelphia and OTC for over the counter.
Two firms have disappeared from the list but not the Washington area. American Finance System, a big Silver Spring consumer finance business, and Equitable General Corp. (owner of Equitable Life Insurance Co.) of McLean were acquired by companies outside the area. New to the list are a number of companies in the services industry, now the area's largest employment sector.
Washington Post staff writers John F. Berry, John M. Berry, Bradley Graham, Laura Kiernan, Jerry Knight, Larry Kramer, Art Pine, Nancy L. Ross, Jane Seaberry, John B. Willmann and Chapin Wright helped to compile The Top 60.
Chesapeake & Potomac
Description: Four companies, wholly owned by American Telephone & Telegraph Co., serving D.C., Maryland, Virginia and West Virginia, with a central corporate office in Washington.
1978 revenues: $2.2 billion (all four companies).
Profits (net income): $282.8 million.
Telephones in service: 8.2 million.
Total toll messages: 642 million.
Assets: $5.3 billion.
Dividends: $229.4 million (paid to AT&T).
Employes: All four firms: 42,542; D.C. area: 6,275.
Top executive: Samuel E. Bonsack, president.
C&P has no rate cases pending in D.C., but recently was given permission to begin charging for some directory assistance services. Rate cases are pending in Maryland and West Virginia. The company received an interim rate hike in Virginia.
Potomac Electric Power Co.
Description: Electric utility serving D.C., a tiny portion of Arlington County in Virginia (which includes the largest single customer point - the Pentagon), the populous Maryland suburbs and, through sales to a cooperative, Southern Maryland. (NYSE, P).
1978 revenues: $714.7 million.
Profits (net income): $78.8 million.
Profits per share: $1.70.
Assets: $2.1 billion.
Dividends: $54.08 million ($1.34 a share).
Top executive: W. Reid Thompson, chairman and president.
Pepco's major problem has been related to rates in D.C., where a $45 million increase was proposed in mid-1977 but not acted upon until last week, when the city's public service commission decided to grant only a $5.7 million rate rise and to bar Pepco from raising rates for anyone using less than 450 kilowatts a month, which includes most city residents. Pepco has asked and additional $15.5 million in D.C. in a new case and is seeking a $19.1 million rate boost in Maryland. The company contends that once charges are brought up to a level that covers inflation of the past two years, future rate hikes won't be as large as consumer price increases generally - because the company already has adequate generating capacity and has no need for massive and costly construction.
Washington Gas Light Co.
Description: Utility that provides natural gas service to metropolitan Washington and, through subsidiaries, to Frederick, Md., and the Shenandoah Valley of Virginia and West Virginia. (NYSE, P).
1978 revenues: $352.9 million.
Profits (net income): $13.8 million.
Profits per share: $2.51.
Assets: $490.9 million.
Dividends: $3.2 million ($2.28 a share, since boosted to $2.40 annually).
Top executives: Paul E. Reichardt, chairman; Donald J. Heim, president.
WGL earnings of $2.51 a share represented a 30-cent decline from 1977, in part because of delays in a D.C. rate increase. The company has received rate hikes in Maryland and Virginia, and is seeking a new increase in D.C., contending that the city commission doesn't allow WGL revenues high enough to achieve permitted profit levels. With more adequate supplies of natural gas, WGL is expanding its customer base again - both at the residential level and through efforts to attract commercial business to balance out its unusually heavy residential orientation that creates sharp seasonal changes in profitability. The utility's earnings depend on sales for winter gas heating. If the weather is warm, profits plummet.
National Railroad Passenger Corp.
Description: Government-subsidized corporation that operates virtually all American intercity railroad passenger trains - which suddenly are in vogue because of gasoline shortages. Amtrak operates trains over a 27,000-mile system, stopping at 543 stations.
1978 revenues (fiscal year ended Sept. 30, 1978): $313 million.
Net loss: $582 million.
Ridership: 18.9 million passengers.
Passenger miles: 4.16 billion.
Assets: $1.3 billion.
Dividends to stockholders (railroads): none.
Founded: 1971, as successor to most private rail passenger operations in service at that time.
Top executives: Alan Boyd, president; Harry T. Edwards, chairman of the board (most members of which are appointed by the government, as financier of the business).
Although business was down in fiscal 1978, Amtrak appears to have hit bottom, and travel by rail has reached new peaks in recent months for the nationwide system. The outlook is for crowded trains this summer because amtrak does not have enough modern equipment to cope with the new demand. The Carter administration is having some second thoughts about its plan to trim 43 percent of Amtrak's route miles on Oct. 1, and some of the 24 trains scheduled to be abandoned will remain because of congressional pressure. By the mid-1980s, with commitments to spend $1 billion or more for new equipment in the next five years, Amtrak should be able to do a better job of carrying more riders, and some trains then may be restored. But heavy taxpayer subsidies will be necessary, and Congress hasn't decided how much aid to provide in view of overall future transportation needs. Most Americans prefer their own cars but want trains available in a pinch - a costly proposition. Attitudes may change slowly as the energy crisis becomes understood.
Description: Washington corporation, formerly a government agency, that supports a secondary market for home mortgages under regulation by the Department of Housing and Urban Development. FNMA is the nation's largest single owner of mortgages, bought from lending institutions with funds the company attracts through sales of debentures to investors. This process frees more money for housing mortgages. (NYSE).
1978 revenues (interest and discounts on mortgages and loans): $3.22 billion.
Interest on borrowings, related costs: $2.76 billion.
Profits (net income): $209 million.
Profits per share: $3.47.
Assets: $43.5 billion (mostly a portfolio of housing mortgages).
Dividends: $63.3 million $1.15 a share, since increased to $1.28 annually).
Employes: 1,288 (575 based in D.C. at new headquarters on upper Wisconsin Avenue NW).
Founded: 1938 as a government agency and transformed into a private firm in 1969 with 10 directors elected by stockholders and five appointed by the president.
Top executive: A. Oakley Hunter, chairman and president.
With mortgage rates heading back to record levels last year, FNMA faced unprecedented demand to buy mortgages.One result was record earnings as FNMA issued $19 billion in commitments to buy mortgages (double the 1977 level) and actually purchased $12.3 billion (up from $4.8 billion). Fannie Mae recently started three programs designed to rehabilitate urban housing as new housing starts decline in advance of a projected national recession. Mortgage rates may now be at a peak.
U.S. Postal Service
Government corporation that is successor to the old Post Office Department and principal delivery agent for mail in the U.S.
1978 revenues (fiscal year ended Sept. 30, 1978): $14,13 billion.
Expenses: $16.22 billion.
U.S. appropriations: $1.72 billion.
Net loss: $379 million.
Mail volume: 96.9 billion pieces.
Assets: $13.4 billion.
Founded: 1971, replacing a federal department which began in the English colonies in 1692.
Top executives: William Bolger, post-master general; James Conway, deputy postmaster general.
The Postal Service expects a surplus from operations in the current fiscal period after years of steep deficits, and no general postal rate increase is expected until 1981. New three-year labor contracts were signed last year, and the Postal Service is experimenting with specialized local mail and package deliveries in an attempt to recover some business lost to private competitiors. Some rates have been reduced. The biggest controversy today concerns Postal Service proposals to become an electronic communicator. Government policies have not been established, but experiments are in progress on new technologies of message delivery that could create competition for private communications firms. As might be expected, there are objections to this role for Uncle Sam's delivery system.
Description: The nation's ninth largest rail firm and one of the most profitable, a prime hauler of coal and chemicals. Its system stretches from Florida to Virginia, and from Louisiana to Illinois (NYSE).
1978 revenues: $1.26 billion.
Profits (net income): $127.3 million.
Profits per share: $8.35.
Assets: $2.65 billion.
Dividends: $44.3 million 2.74 a share on common, since increased to $3.20 annually).
Top executive: L. Stanley Crane, president.
The company's last passenger train, the Southern Crescent, was transferred to Amtrak, ending a loss of some $7 million a year. A merger has been proposed with Norfolk & Western Railway, which would create a rail system from the Gulf Coast to Canada and become a defense against the proposed Chessie System-Seaboard merger now before the Interstate Commerce Commission.Southern and N&W expect an accord by this summer. In the meantime, freight business has remained strong despite pessimistic forecasts for the economy. Southern's service region is more immune than most to recession.
(To be renamed USAir about Oct. 28)
Description: The nation's sixth largest domestic passenger airline in terms of riders and the only D.C.-based airline, with headquarters at National Airport (NYSE, P).
1978 revenues: $566.8 million.
Profits (net income): $32.3 million.
Profits per share: $4.06.
Assets: $403.6 million.
Employes: About 9,000.
Top executiver: Edwin Colodny, chairman and president.
Since last December, Allegheny has entered many new markets. It has extended service into the Sun Belt with flights to Tampa, Orlando and West Palm Beach, Fla., Phoenix, Ariz., Birmingham, Ala., Raleigh/Durham, N.C. and New Orleans. The company, which is in the process of changing its name, is optimistic about the future, contingent upon fuel-supply developments.
The Washington Post Co.
Description: Owner of The Washington Post, Trenton (N.J.) Times, Everett (Wash.) Herald, Newsweek, four TV stations and interests in the International Herald Tribune, a news service and newsprint operations. (Amex)
1978 Revenues: $520 million.
Profits (net income): $49.7 million.
Profits per share: $3.06.
Assets: $329 million.
Dividends: $4.8 million (30 cents a share, since raised to 36 cents a share annually).
Top executives: Katharine Graham, Chairman and chief executive; Mark Meagher, president.
The Post Co. has entered its second century, expecting to continue rapid growth. In 1978, the firm exchanged its Washington television station (now WDVM) for Detroit's WDIV, gaining access to a larger market.
Communications Satellite Corp.
Description: Comsat and its subsidiary, Comsat General Corp., are engaged primarily in providing international, maritime and U.S. domestic communications satellite services. (NYSE)
1978 Revenues: $185 million.
Profits (net income): $34.2 million.
Profits per share: $4.28.
Assets: $529 million.
Dividends: $16 million ( $2 a share, since increased to $2.30 annually).
Top executives: John D. Harper, chairman; Joseph V. Charyk, president and chief executive officer.
Comsat's future is illuminated by the growing use of its communications satellites and continued deregulation efforts on the part of the Federal Communications Commission. Last year, the company completed its final link in its maritime communications.
MCI Communications Corp.
Description: Specialized telecommunications common carrier, based in Washington. (OTC)
Annual revenues (fiscal year ended March 30, 1979): $95.2 million.
Profits (net income): $7.08 million.
Profits Per Share: $0.20.
Assets: $209 million.
Dividends: Preferred stock only at $2.64 a share, based on a percentage of profits.
Top executives: William McGowen, chairman; V. Orville Wright, president.
MCI is expanding rapidly and is projecting a major expansion of revenues. A competitor of the Bell System for interstate business of large-volume users, MCI expects to benefit greatly from proposed communications deregulation.
Bureau of National Affairs Inc.
Description: Washington publisher of legal, economic, labor, tax, financial, environmental, safety and energy information for business and professional users. The company is owned by its employes.
1978 revenues: $62 million.
Profits (net income): $3.9 million.
Profits per share: $2.11.
Assets: $55.7 million.
Dividends: $1.3 million (70 cents a share).
Top executive: John D. Stewart, president and editor-in-chief.
BNA celebrates its 50th anniversary this year and will publish a series of studies forecasting expectations for the next 50 years by a number of leaders in various areas. The financial prospect continues to be rosy for the publisher of some 50 daily, weekly, bi-monthly and monthly information reports.
Description: A Glenn Dale, Md., holding company for nine subsidiaries, mainly printing companies and publishers, including the Merkle Press and Byron Adams locally. It ranks 12th involume among thousands of U.S. commercial printers. (OTC)
1978 revenues: $53.2 million.
Profits (net income): $1.2 million.
Profits per share: $0.42.
Assets: $30.3 million.
Top executives: Charles W. Lockyer, chairman and president.
Pubco expects continued improvement in sales and earnings due to new marketing programs. First-quarter sales rose and profits advanced substantially.
Riggs National Bank
Description: Washington's biggest commercial bank and owner of the region's largest independent credit card system, Central Charge Service. (OTC)
1978 Profits (net income): $18.4 million.
Profits per share: $6.05.
Loans: $1.003 billion.
Deposits: $2.037 billion.
Assets: $2.425 billion.
Dividends: $7.827 million ($2.40 a share plus an extra dividend of 20 cents a share declared in December 1978).
Top executives: Vincent C. Burke Jr., chairman; Daniel J. Callahan III, president.
Traditionally the biggest and most conservative of Washington's major banks, Riggs has aggressively expanded its international business into the Middle East and Eastern Europe and added American Express to complement its own charge card system. Currently, the bank is engaged in an unusual program of detailing its emphasis on consumer service and plans to all employes at several meetings.
American Security Corp.
Description: Holding company and parent firm of American Security Bank, the second largest in D.C., with subsidiaries in mortgage banking, real estate, insurance and travel. (OTC)
1978 profits (net income): $19.4 million.
Profits per share: $5.30.
Loans: $1.25 billion.
Deposits: $1.64 billion.
Assets: $2.08 billion.
Dividends: $7.3 million ( $2 a share, since increased to $2.20 annually).
Top executives: Carleton Stewart, chairman; W.Jarvis Moody, president.
American Security is the fastest-growing bank in Washington. It has opened out-of-town loan offices, organized an international banking subsidiary in the Bahamas, set up shop in Japan and prepared for increased business with China in the past year.
Financial General Bankshares Inc.
Description: Bank holding company with banks in Washington, Virginia, Maryland, Tennessee and New York. Its local banks rank behind Riggs and American Security in total assets. (Amex)
1978 profits (net income): $13.4 million.
Profits per share: $2.03.
Loans: $1.161 billion.
Deposits: $1.845 billion.
Assets: $2.160 billion.
Dividends: $2.541 million (40 cents a share cash dividend plus 5 percent stock dividend).
Top executives: B. Francis Saul II, chairman; J. William Middendorf II, president and chief executive officer.
Creating First American Bank of Virginia and First American Bank of Maryland by merging smaller suburban banks, Financial General is beginning to capitalize on its position as the only banking company with offices in the District and its suburbs. But management is still preoccupied with fighting an 18-month-old effort by Middle Eastern investors to take over the company.
Descriptiion: Holding company for Suburban Trust Co., fourth largest bank in Maryland and biggest in the D.C. suburbs. Also owns leasing and mortgage banking subsidiaries. (OTC)
1978 profits (net income): $13.404 million.
Profits per share: $2.90.
Loans: $827.2 million.
Deposits: $1.116 billion.
Assets: $1.276 billion.
Dividends: $6.3 million ($1.40 a share):
Top executives: Robert Tardio, chairman and president.
Suburban's latest acquisition is An tietam Bank of Hagerstown, which will merge with National Bank of Hancock, acquired by Suburban last year.
First Virginia Banks Inc.
Description: Holding company for First Virginia Bank and 19 other commercial banks in Virginia. Headquarters in Falls Church. The largest Northern Virginia bank holding company. (NYSE)
Profits (net income): $11.6 million.
Profits per share: $1.10.
Loans: $819.9 million.
Deposits: $1.2 billion.
Assets: $1.36 billion.
Dividends: $5.1 million (47 cents a share, since increased to 50 cents annually).
Top executives: Thomas K. Malone Jr., Chairman and chief executive; Robert H. Zalokar, president.
First Virginia Banks' latest affiliate is the former Bank of Warrenton which became First Virginia Bank Eastern.
Savings & Loan Association
Description: Largest savings and loan association in the Washington area and the first to exceed $1 billion in assets. It has 13 offices and an outspoken new chairman.
1978 revenues (fiscal year ended Oct. 31, 1978): $78.5 million.
Profits (net income): $9.8 million.
Assets: $1.038 billion.
Dividends on savings accounts: $42.4 million.
Savings accounts: $807.1 million.
Mortgage loans: $941.2 million.
Top executive: Thomas J. Owen, chairman and chief executive.
Perpetual is leading the fight for interstate branching here and, meanwhile, has loaned $5 million under the Community Reinvestment Act for low-income housing in D.C. The S&L's 14th office opens soon at Tenley Circle NW.
Nation Permanent Federal
Savings & Loan Association
Description: Second-largest savings and loan association in the D.C. area with 11 offices.
1978 revenues: $54.4 million.
Profits (net income): $4.3 million.
Assets: $689.6 million.
Dividends on savings accounts: $35.4 million.
Savings accounts: $556 million.
Mortgage loans: $613 million.
Top executives: John M. Stadtler, chairman and chief executive; Thomas M. Walsh, vice chairman.
Navy Federal Credit Union
Description: The world's largest federal credit union, with 60 branches around the world and 483,000 members, based in Vienna.
1978 revenues: $70 million.
Profits (net income): $2.8 million.
Assets: $765.5 million.
Dividends: $9.2 million.
Top executive: Vice Adm. V. A. Lascara, USN, president.
Since its mortgage lending program began this year, NFCU has closed about $10 million in loans in the D.C. area. The program will expand soon to Norfolk.
National Rural Utilities
Cooperative Finance Corp.
A nonprofit cooperative that provides its 896 rural electric system members with financing to supplement federal loans. Headquarters in Georgetown. CFC represents 7.3 million consumers of electricity in rural areas.
1978 revenues: $102.2 million.
Profits (net margin to CFC members): $12.5 million.
Loan volume outstanding: $1.29 billion.
Assets: $1.38 billion.
Top executives: J. K. Smith, governor; Donald R. Norris, president.
CFC is supplying financing for members' pollution control projects and weatherization programs. It also supplies a limited source of funding for nuclear and fossil-fuel power plants. CFC has increased the number of bond issues this year aimed at reducing utilities' short-term debts.
Description: Holding company for Government Employees Insurance Co., a major national automobile insurance firm. Geico also owns controlling interests in three affiliates: Government Employees Life Insurance, Government Employees Financial (small loans) and Criterion (auto insurance). Operating figures below are for Geico. (OTC)
1978 written premium volume: $625.7 million.
Income from operations: $62.4 million.
Profits (net income): $88.2 million.
Profits per share: $2.49.
Assets: $1.34 billion.
Dividends: $3.6 million (20 cents a share, now 32 cents a share annually).
Employes (all Government Employees companies): 5,271, plus 711 part-timers.
Top executive: John J. Byrne, chairman.
After recovering smartly from earlier ravages by inflation that almost led to insolvency several years ago, geico's main problem now is to increase its base of customers, which has been declining but appears to have stabilized. New marketing programs have been started, and Geico is signing up organizations whose members are being told about the Washington firm's competitive rates. A problem on the horizon is the deadly mixture of soaring claims and repair costs as well as general inflation, but Geico is ready with extra reserves to meet claims this time so the spectacle of earlieryears won't be repeated.
Description: A diversified financial services and merchant banking firm with investments in manufacturing, insurance and overseas banks. (OTC)
1978 Revenues: $21.4 million.
Profits (net income): $15.6 million.
Profits per share: $2.15.
Assets: $144.6 million.
Dividends: $2.3 million (31 1/2 cents a share, since raised to 36 cents annually).
Employes: 23,200, including subsidiaries and affiliates.
Top executive: George Olmsted, chairman and president.
Through acquistions, IB has consolidated both its life and its property and casualty insurance groups. It is studying the acqquisition of International General Industries, of which it owns a controlling interest, and its finance-leasing group now is profitable after restructuring.
Life Insurance Co.
Description: The Acacia companies include the life insurer, among the top 5 percent of U.S. life insurance firms in terms of assets, with subsidiaries engaged in selling annuity contracts and marketing sales courses.
1978 revenues: $141.6 million.
Profits (net income): $24.9 million.
Assets: $774.5 million.
Dividends: $17.6 million.
Top executives: Daniel L. Hurson, chairman and president, who will be succeeded as president and chief executive next Jan. 1 by Duane B. Adams, the fourth president in Acacia history.
Acacia's life sales last year were a record $418.3 million, up 4 percent from 1977; the firm has $4.2 billion of policies in force.
Fairchild Industries Inc.
Description: A diversified, high-technology company that makes military and commercial aircraft, spacecraft and electronics hardware, domestic satellite communications and specialized industrial products. (NYSE)
1978 revenues: $543.8 million.
Profits (net income): $24.5 million.
Profits per share: $4.88.
Assets: $274.9 million.
Dividends: $3.58 million (75 cents a share, since increased to $1 annually).
Top executives: Edward G. Uhl, chairman and chief executive; John F. Dealy, president and chief operating officer; Charles Collis; executive vice president.
A large backlog of orders ensures strong near-term prospects for the firm. Management is committed to developing sales volume of aircraft and business balance among aerospace, communications and commercial/industrial products. Also, the company is expanding further into electrical and electronics systems through acquisitions.
Martin Marietta Corp.
Description: This Bethesda firm is engaged in five main businesses. Its aerospace company makes aerospace and defense systems primarily for the U.S. government. The aluminum division produces primary aluminum ingot and mill products. A cement company manufactures portland and masonry cements. The chemicals division makes concrete and dyestuff. And an aggregrate company quarries crushed stone, sand and gravel. (NYSE)
1978 revenues: $1.76 billion.
Profits (net income): $136 million.
Profits per share: $5.31.
Assets: $1.57 billion.
Dividends: $421.1 million ($1.70 a share, since increased to $2 annually).
Top executives: J. Donald Rauth, chairman and chief executive; Thomas G. Pownall, president and chief operating officer.
The company is expanding and modernizing. In 1979, it launched a $280 million capital projects program, up $80 million over the year before. Dividends have increased steadily over the past two years, indicating strong profitability. Management intends to strengthen further its current line of business.
Description: Based in McLean, one of the largest privately owned companies in the U.S., Mars is engaged in food and candy manufacturing; its products include M&Ms, 3 Musketeers, Milky Ways and Snickers candy, Kal Kan pet foods and Uncle Ben's rice.
1978 revenues: Estimated at $1.5 to $2 billion.
Profits (net income): Estimated at $90 to $120 million.
Assets: Offices and plants in McLean, Hackettstown, N.J., Vernon, Calif., Houston, Britain, Australia, Belgium, Netherlands, West Germany.
Employes: Several thousand, including 700 salespersons.
Top executives: Company will not disclose names.
Outlook: Business Week magazine said in an Aug. 4, 1978, cover story that Mars is being forced to diversify because of shrinking U.S. candy market. It is beginning to produce cookies as a first step into the non-candy food business. The company's headquarters staff here is said to be tiny.
Description: The nation's largest independent producer of uranium. Also mines coal and is one of the nation's two suppliers of reactor cores and components for the U.S. Navy's nuclear fleet. (NYSE)
1978 revenues: $302.4 million (for fiscal year ended March 31, 1979).
Profits (net income): $43.8 million.
Profits per share: $4.04.
Assets: $410.4 million.
Dividends: $4.2 million (40 cents a share).
Founded: 1962 as successor to company started in 1954.
Top executives: Keith A. Cunningham, president and chief executive; James R. Bancroft, chairman; J. David Hann, executive vice president and chief operating officer.
A big chunk of UNC's profits last year were due to one-time gains. Earnings on operations actually were lower than the year before due to adverse developments in the nuclear and coal industries. The company is banking on a diversification program and has substantially strengthened its credit lines toward this end.
Description: Diversified electrical engineering, contracting, aviation services and energy research company based in McLean. (Amex)
1978 revenues: $290 million.
Net loss: $1.5 million.
Assets: $96.26 million.
Dividends: $451,000 (70 cents a share on preferred, 7 cents on common, with payouts now halted).
Employes: 6,500 to 7,500, depending on season.
Top executives: Jorge Carnicero, chairman; Charles Gulledge, president and chief executive.
Dynalectron incurred large, unexpected losses in construction of waste-water treatment plants last year and low profitability from electrical contracting. Tighter management is supposed to restore profitability. The order backlog is $243.7 million.
Description: A Waldorf, Md., distributor of liquefied petroleum and equipment for its use and storage, with coal mining subsidiaries. (NYSE)
1978 revenues: $155.4 million.
Profits (net income): $4.2 million.
Profits per share: $1.12.
Assets: $132.6 million.
Dividends: $3.8 million ($1.06 a share on common, since raised to $1.08 annually).
Top executive: William Hill, chairman.
Serious losses from coal operations are not expected to continue, so 1979 should be a better year.
E.C. Ernst Inc.
Description: Washington firm that is one of the world's largest electrical construction and contracting firms, now seeking to reorganize under Chapter XI of the Bankruptcy Act.
1978 revenues (contract volume for fiscal year ended March 31, 1978, most recent data available): $129 million.
Net loss: $5.8 million.
Assets: $53.4 million.
Dividends: Most recent payout was 17 cents a share in May 1978.
Top executive: Joseph E. Griffin, chairman and chief executive.
Since a bankruptcy petition was filed last Dec. 1, officers have been working out their financial problems. Says Joseph McCarthy, corporate secretary: "We're very optimistic." The company is working on financial data for the most recent year, but the audit is not complete.
Planning Research Corp.
Description: A diversified professional services company, the largest in the world, in such areas as computer science, information, management consulting, planning, economics, engineering and architecture. (NYSE)
1978 revenues (Year ended June 30, 1978): $223.4 million.
Profits (net income): $4.89 million.
Profits per share: $0.72.
Assets: $120 million.
Founded: 1954 in Los Angeles; moved to D.C. in 1977.
Top executives: Kenneth M. Poovey, chairman; John M. Toups, president and chief executive.
PRC has more than 200 offices in 41 countries. Revenues for the nine months ended March 31, 1979, were $195 million; about 40 percent of revenues in fiscal '78 came from commercial contracts, and 25 percent from the U.S. government for non-military work and 18 percent for U.S. military services.
Description: Diversified electronics and technology company based in Reston, with subsidiaries in Florida, California and Maryland. (OTC)
1978 revenues: $59.2 million.
Profits (net income): $3.7 million.
Profits per share: $3.08.
Assets: $33 million.
Dividends: $605,715 (50 cents a share, since changed to 60 cents a share annually).
Top executive: William C. Schaub, chairman and chief executive.
Scope expects 1979 to be another record year, but profit margins likely will be affected adversely by the costs of debt service and rapid expansion of the marketing and service capabilities of the National Controls subsidiary, which makes electronic weighing equipment.
Solon Automated Services Inc.
Description: Supplier of laundry equipment services, manufacturer of clothes dryers and owner of Vermont ski resort. (OTC)
1978 revenues (year ended Sept. 30, 1978): $57.7 million.
Profits (net income): $5 million.
Profits per share: $1.62.
Assets: $57 million.
Dividends: $343,000 (12 cents a share).
Employes: 650, including 20 to 350 at the Sugarbush resort on Vermont, according to the season.
Top executives: S. Solon Cohen, chairman; M. Roy Cohen, president and chief executive.
Solon has expanded its ski resort by acquiring adjoining land. With laundry services in 27 states, Solon is looking at new markets for expansion.
Flow General Inc.
Description: Diversified scientific firm engaged in research, analysis and manufacturing of biomedical and biological products. (Amex)
1978 revenues (year ended June 30, 1978): $49 million.
Profits (net income): $1.6 million.
Profits per share: $1.05.
Assets: $25.6 million.
Top executives: Thomas C. Bazemore, chairman; Joseph E. Hall, president and chief executive.
Description: Diversified professional services firm, based in McLean.
1978 revenues: $47.9 million.
Profits (net income): $1.46 million.
Profits per share: $1.87.
Assets: $15.7 million.
Dividends: $138.784(13 cents a share); dividends ard paid in the following year, at a level of about 10 percent of prior year's earnings, which resulted in a 1979 distribution of 18 cents a share.
Founded: 1959, in El Paso, Tex.; BDM moved here in 1973.
Top executive: Earle C. Williams, president and chief executive.
BDM is engaged in applied sciences, systems, technology and policy research. One area of current concentration is solar energy.
Atlantic Research Corp.
Description: Alexandria-based developer of sophisticated small rockets and gas generators, using solid propellants; ARC also is engaged in data communications, electromagnetic field measurement and analysis, microchemistry, printing and aerospace-related fields. (OTC)
1978 revenues: $45.2 million.
Profits (net income): $1.27 million.
Profits per share: $1.19.
Assets: $21.2 million.
Top executive: Coleman Raphael, president.
Atlantic Research became a publicly traded firm last week after a successful offering of 524,000 shares at $10 apiece. Last year, more than 300 employes had purchased stock in ARC, widening the ownership base that had been limited to top officers. As of March 26, ARC had 174 major contracts with an average value of more than $400,000; many of the contracts are to continue for a decade.
Hazleton Laboratories Corp.
Description: A Vienna life sciences firm that manufactures products and provides services for institutions dealing with processess or diseases which affect man and his environment. (OTC)
1978 revenues (year ended June 30, 1978): $30 million.
Profits (net income): $1.34 million.
Profits per share: $0.72.
Assets: $21.5 million.
Dividends: $98,000 (10 cents a share).
Top executives: Kirby L. Cramer, chairman and chief executive; Donald P. Nielson, president.
Hazleton is doubling the capacity of toxology labs and sees increased demand for contract research from the chemical and pharmaceutical industries.
Description: Washington-based temporary-office-help company with offices in 14 major markets, paying benefits and wages commensurate with permanent employment for workers who take jobs in business on the spur of the moment.
1978 revenues: Estimated at $20 million.
Profits (net income): Unknown, but described as one of "top income producers" in its industry.
Top executive: Barry Wright, president.
Several new offices are planned this year. Last fall, a Temporaries Federal Credit Union began operations, the first ever in U.S. history for temporary employes.
Covington & Burling
Description: Washington's largest and most prestigious law firm, for decades.
1978 revenues: Estimated at $15- $25 million.
Profits (et income): Unknown.
Employes: About 600, including more than 200 lawyers (80 partners and about 130 associates).
Top executives: Howard Westwood, senior partner; Charles Horsky, senior partner; Ernest Jennes, senior partner; John Sapienza, senior partner; Harry Shnidderman, managing partner; Dan Gribbon, chairman and lead partner; Stan Temko, managing partner; Michael Boudin, managing partner; Randolph Wilson, managing partner; John Ellicott, managing partner.
The law business is booming, and Covington has been growing along with the needs of business to deal with Big Government. Covington & Burling had only 125 lawyers as recently as 1973 and plans to add another 23 permanent lawyers this year.
Ehrlich-Manes & Associates
Description: Washington area's largest advertising agency in terms of annual billings to customers.
1978 billings: $14.34 million.
Gross income: $1.75 million.
Profits (net income): Unknown.
Top executives: Alvin Q. Ehrlich, president; Nella C. Manes, executive vice president.
Fighting it out with rivals Earle Palmer Brown & Associates (1978 billings of $11.4 million) and Henry J. Kaufman & Associates ($13.3 million) for the number one rank in a town where the ad business has never matched in size the local business community, Ehrlich-Manes represents a diversified client mix that includes the Credit Union League, Bankers Security Life Insurance - added last year - Fokker Aircraft (all North American advertising for the F27 plane), Hugh T. Peck Properties Inc., Toxigenies Inc., Auto-Train Corp. and Ferris & Co. - all added this year.
Giant Food Inc.
Description: Regional supermarket chain with 117 food stores, 47 pharmacies, 30 Pants Corrals, 5 garden centers and a gas station. (Amex)
1978 revenues (fiscal year Ended Feb.24, 1979): $1.08 billion.
Profits (net income): $16.9 million.
Profits per share: $3.40.
Assets: $281 million.
Dividends: $4.3 million (87 cents a share, since increased to $1 a share).
Top executives: Israel Cohen, chairman and president.
Giant recently passed Safeway to become the number one food retailer in the Washington market. In August, Giant will become the first major firm in the supermarket business to install computer checkouts in all stores. The company's dividend was increased recently after a 3-for-2 stock split.
Peoples Drug Stores Inc.
Description: Regional drug store chain operation in nine states and the District of Columbia under the names of Peoples, Lane, Reed, Lee Schuman, Dynamic Discount and Health Mart. (NYSE, P)
1978 revenues (fiscal year ended Sept. 30, 1978): $404.4 million.
Profits (net income): $5.5 million.
Profits per share: $1.52.
Assets: $117.2 million.
Dividends: $725,000 (20 cents a share, since raised to 24 cents a share).
Top executives: Adrian C. Israel, chairman; Sheldon W. Fantle, president.
Consolidation of Peoples' far-flung retail empire into four operating divisions and centralization of controls helped push sales per store over the $1 million mark last year and boosted profit margins to 1.4 percent of sales from 1.2 percent.
Garfinckel, Brooks Brothers,
Miller & Rhoads Inc.
Description: National retail conglomerate with 183 stores in 7 chains: 7 Garfinckel, 19 Brooks Brothers, 8 Harzfeld (Kansas City is the base), 30 Ann Taylor, 87 Catherine's Stout Shoppes, 21 Miller & Rhoads (Richmond base) and 11 Miller (Knoxville). (NYSE)
1978 revenues (fiscal year ended Feb. 3, 1979): $390.9 million.
Profits (net income): $14.7 million.
Profits per share: $3.23.
Assets: $142 million.
Dividends: $5.23 million ($1.14 a share, since increased to $1.24 annually).
Top executive: David Waters, chairman and president.
Garfinckel has unloaded its unprofitable Joseph R. Harris operation based in Washington, and plans three new Garfinckel units in the D.C. area several more Catherine's stores and expansion or modernization in other divisions to reach a goal of $600 million in sales by 1981.
Woodward & Lothrop Inc.
Description: Washington's larges local general merchandise retailer Woodward & Lothrop ranks second to Sears, Roebuck & Co. in non-food sales in the area with its 13 department stores and warehouse sales center. (OTC)
1978 revenues (fiscal year Ended Feb. 3, 1979): $271 million.
Profits (net income): $12.2 million.
Profits per share: $5.04.
Assets: $180 million.
Dividends: $4.1 million ($1.70 share).
Top Executives: Edwin K. Hoffman, chairman; Waldo H. Burnside, president.
One of the last independent department store chains in the nation, Woodies is also one of the most profitable, earning 4.5 percent on sales. The chain is the target of a union organization drive by the Retail Clerks International Union.
Drug Fair Inc.
Description: Diversified regional drug chain with 170 drug stores 13 Wrangler Wranch jean shops, 10 Scoops ice cream parlors and 3 Soup'r Scoops fast-food and snack shops. (Amex)
1978 revenues (annualized fiscal period from Feb. 1, 1978, to Jan. 27, 1979. Drug Fair recently changed its fiscal year and officially reported results for only a shortened year in 1978): $250.5 million.
Profits (net income): $1.6 million.
Profits per share: $0.94.
Assets: $65.6 million.
Top executives: Milton Elsberg, president; Myron D. Gerber, Chairman.
Outlook: Top priority for Drug Fair is improving its profit margins through diversification and internal reorganization.
Dart Drug Corp.
Description: Regional retail chain with 75 Dart Drug stores and 11 Crown Books units in the District of Columbia, Virginia, Maryland, Pennyslvania and Delaware. (OTC)
1978 revenues (fical year ended Jan. 31, 1979): $209 million.
Profits (net income): $2.5 million.
Profits per share: $1.35.
Assets: $70.4 million.
Dividends: $162,000 (13 cents a share).
Top executive: Herbert Haft, president.
Dart plans to open at least four more Crown Books and four Dart Drug stores in the next year. Earnings and sales were up for the first quarter of the new fiscal year, traditionally Dart's slowest period.
Description: Hechinger calls itself "the world's most unusual lumber yards." Besides dominating the local do-it-yourself market, Hechinger has built a national reputation in the home center business. (OTC)
1978 revenues (fiscal year ended Feb. 3, 1979): $111.2 million.
Profits (net income): $3.5 million.
Profits per share: $1.22.
Assets: $58.7 million.
Dividends: $37,907 (9 cents a share and 4 percent stock dividend).
Top executives: John W. Hechinger, president; Richard England, chairman.
Last year's move into its new headquarters and distribution center in Landover has improved the company's profits and provided the base for setting up a 200-mile ring of home centers. Three more stores in the Baltimore area, two in Tidewater, Virginia and one in Northeast Washington are planned.
Hotel, Food Services
Description: An international company with 40 hotels and 16 franchise inns, Roy Rogers and Big Boy restaurants, dinner houses and cafeterias, inflight airline catering, 2 amusement parks and cruise ship operations. (NYSE)
1978 revenues: $1.25 billion.
Profits (net income): $54.3 million.
Profits per share: $1.43.
Assets: $1 billion.
Dividends: $4.7 million (16 cents a share).
Top executives: J. Willard Marriott, chairman; J.W. Marriott Jr., president and chief executive.
Faster growth is planned for the next five years in hotels, especially in business centers, and there will be a heavy emphasis on management development. High food costs make some restaurants and airlines catering less profitable. At the two theme parks in Illinois and California, profits are expected to improve as expenses are cut.
Description: A Cheverly-based food services and vending company whose other lines of business include 29 Farmily Fish Houses, 10 D&F furnishings stores, plus maintenance services and coin-operated laundry facilties. (NYSE)
1978 revenues (fiscal year Ended Sept. 30, 1978): $230.6 million.
Profits (net income): $4.75 million.
Profits per share: $1.44.
Assets: $98.6 million.
Dividends: $1.28 million (42 cents a share, since raised to 48 cents annually).
Top executives: Meyer Gelfand, chairman and chief executive; Joseph P. Kingrey, president.
Macke's fastest growth areas are public restaurants - two more Family Fish Houses are scheduled to open this year - and corporate cafeterias and executive dining rooms.
Quality Inns International Inc.
Description: A Silver Spring-based chain of 307 owned and franchised hotels and motels in the U.S., Canada and Mexico with 35,000 rooms. (OTC)
1978 revenues (fiscal year Ended Aug. 31, 1978): $56.9 million.
Profits (net income): $1.48 million.
Profits per share: $0.56.
Assets: $80.1 million.
Dividends: None in fiscal '78; 20 cents has been declared since.
Top executives: Stewart Bainum, chairman; Joseph W. McCarthy, president and chief executive.
Back in the black for the first time in four years, Quality is expanding operations after selling off unprofitable European units. Two Quality-managed inns recently opened in Mexico, with 40 planned in the next five years. The firm has acquired 25 properties from bankrupt Royal Inns of America franchises and plans more Canadian franchises.
Building, Real Estate
Real Estate Investment Trust
Description: Owner of 64 income-producing properties with gross investment of $212 million; the Saul company terminated its status as an IRS-qualified real estate trust in 1978. (NYSE).
1978 revenues (fiscal year ended Sept. 30, 1978): $39.5 million.
Net loss: $4.9 million.
Assets: $260 million.
Dividends: None, but they may resume in 1979.
Employes: "Few, mainly officers."
Top executives: B. Francis Saul II, chairman; Philip Caraci, administrative vice president.
Saul has begun to convert apartment projects to condominiums and will develop and sell finished lots and buildings, in addition to developing some of its own land for income-producing properties.
Description: A Columbia real estate development and management firm with subsidiaries engaged in investment and mortgage banking services, 30 retail shopping centers. (OTC).
1978 revenues: $97 million.
Earnings from operations before non-cash charges: $16.9 million.
Profits (net income): $5.9 million.
Profits per share: 44 cents.
Assets: $622 million.
Dividends: 28 cents a share.
Top executives: Mathias J. DeVito, president and chief executive officer; Michael Spear, executive vice president for development; R. Harwood Beville, executive vice president for operations.
Current projects include construction of Harbor Place, an office and shopping complex in Baltimore, and rebuilding of two square blocks of retail space in Santa Monica, Calif.
Description: Holding company for George Hyman Construction Co., a major area general contracting and construction company and its major asset, as well as Omni Construction Co., a non-union contractor. With projects from Atlanta to San Francisco, Clark is privately owned.
1978 Revenues: $300 million.
Profits (net income): Unknown.
Assets: $107 million.
Employes: More than 3,000.
Founded: 1906, as George Hyman Co.
Top executives: A. James Clark, president; Benjamin Rome, chairman.
Business is booming; the firm signed $200 million of contracts in one recent week for construction work, much of it in the D.C. area.
Rozansky & Kay
Description: Real estate construction and development firm, builder of office buildings, town houses, apartments and shopping centers. A private firm.
1978 revenues: $7.5 million.
Profits (net income): Unknown.
Assets: $15 million.
Employes: 140, plus contractors.
Top executives: Allan Rozansky and Alan Kay.
Three office buildings, at a total cost of $22 million, and an office renovation project are under way in Washington. Construction of a new office building in the Tysons Corner area is scheduled to begin in July, and a shopping center on Rockville Pike is planned.
Oliver T. Carr Co.
Description: Washington real estate planning, development and management firm that is the most active in D.C. projects, with nine projected new starts valued at $150 million. It is a private, family-owned company.
1978 revenues: Unknown.
Profits (net income): Unknown.
Top executives: Oliver T. Carr Jr., president; Philip R. Carr, vice president for operations; Ronald A. Goode, vice president for office development; Robert O. Carr, vice president for residential development.
Six projects are currently being developed with a total construction cost of more than $100 million, including the 269,000-square-foot International Square II.
Description: A privately held builder and developer in Maryland, Virginia and D.C.
1978 revenues: $59 million.
Profits (net income): Unknown.
Top executives: Clarence E. Kettler, president; Milton E. Kettler, chairman and vice president.
The outlook is positive with little decline seen in area home building.
for Housing Partnerships
Description: Created by Congress, it is a privately owned and operated company that provides equity capital and joint-venture funding to stimulate low-income to moderate-income home building.
1978 revenues: $20 million.
Net loss: $296,000.
Assets: $105 million.
To executives: George W. De Franceaux, chairman; George M. Brady Jr., president.
The company's optimistic outlook for 1979 and 1980 is offset somewhat by the possibility of a reduction in profits from its home building subsidiaries due to inflation, the gas shortage and the mortgage rate situation.
Donohoe Construction Co. Inc.
Description: Developer and general contractor based in Washington. A private firm.
1978 revenues: $33 million.
Profits (net income): $2.3 million (before depreciation).
Profits per share: $1.82
Assets: $24 million.
Dividends: 50 cents a share.
Top executives: Richard J. Donohoe, president; Clarence F. Donohoe Jr., chairman of the board.
With a backlog of $150 million of new construction, the company expects a better year than 1978, its best year ever. Adopting a strategy of disclosure by private firms that is unusual but growing in number, the company made public its results last year in an annual report, the first to gain public dissemination.
CAPTION: Chart, Top 60; Picture 1, no caption, By Larry Morris - The Washington Post; Picture 2, no caption. Southern Railway Co.