Because of typographical errors, two figures were incorrect in last week's survey of the region's Top 100 companies.Southern Railway's 1980 earnings per share were $11.57, and Donohoe Construction Co. sales were $81.4 million last year.
There are some hints of caution in conversations with local executives about prospects this year for Washington business, as The Washington Post publishes its annual survey of the major regional enterprises.
But the majority of area business leaders expect 1981 to be substantially better than 1980, especially after midyear.
There is no question that 1980 was a year of substantial growth in business volume for most of the large area corporations. But the annual survey of 100 firms in today's Washington Business shows that for many, profits were squeezed a bit by an increase in expenses and the record cost of money.
A full listing of the Top 100, showing return on stockholders' equity for the most recent five years as well as revenue and profit figures (where available), is found inside on pages 26 through 28. Brief sketches of each business follow beginning on page 29.
While most executives contacted in recent weeks for today's survey appear to be optimistic about the shape of the region's economic future, some business executive are concerned that the Reagan administration's proposes cutbacks in the federal establishment will lead inevitably to a period of unusual stagnation locally.
The major weak link in the area economy today is real estate and home-mortgage financing, twin victims of long-term mortgage rates in excess of 15 percent. But some consulting firm and research company executives see on the horizon a cutback in their business, too, if federal spending is slashed in their particular sectors.
The consensus, however, is bullish on the Washington region. Says W. Jarvis Moody, chairman of American Security Corp.: "We expect the Washington area economy to be as strong or stronger than any regional economy in the country. Periodic setbacks -- caused by abnormally high interests rates, high cost of money in general, etc. -- should be less severe than in other areas around the nation, and shorter-lived."
Any downturn from government budget-cutting should be offset by increasing private sector employment locally, Moody adds.
This year for the first time, The Washington Post's annual survey has been expanded to 100 enterprises (from 60 a year ago).
In addition, to reflect the increasingly regional scope of the area economy, 20 -- 10 from each state -- of the most substantial businesses in Maryland and Virginia that do not have headquarters in the immediate area have been added.
These business already are a part of the local community. Maryland National and United Virginia are major area bankers, with branches throughout the D.C. suburbs, as well as the top firms in the banking industry in their respective states. The big Richfood cooperative in Richmond provides food products to the area's Memco stores and other grocers. McCormick & Co., the Maryland spice giant, is about to become a major real estate developer in Prince George's County. Loyola Federal Savings & Loan of Baltimore has entered the Washington marketplace and Woodward & Lothrop is opening a store northeast of Baltimore.
Altogether, the 100 enterprises in The Washington Post survey had revenues in 1980 that exceeded $75 billion. Approximately 1.4 million persons get regular paychecks from these businesses. Of the companies on the Top 100 list, at least five had losses in the most recent fiscal year (two of them government-charted operations, Amtrak and the U.S. Postal Service).
Revenues increased last year for most of the Top 100 and employment levels rose slightly. Many corporations devoted large amounts of capital to expansion projects in 1980 and spending at even higher levels is planned for 1981.
The most serious worry of business executives continues to be inflation. Speaking for BDM International of McLean, second-largest of the locally bases professional and technical services firms, Chairman Earle Williams said he shares the Reagan administration's views that lowering tax rates will encourage investment, savings and labor productivity.
"However, the most favorable economic studies do not project an increase in economic growth sufficient to offset the tax revenue lost by lower rates," he adds. Thus, Williams forecasts large budget deficits in fiscal years 1981 and 1982 compelling the Federal Reserve Board to continue monetary restraint and push interest rates higher in the second half of 1981.
BDM forecasts that the U.S. economy expanded at an annual rate under the 4 percent (inflation-adjusted) rate predicted by the administration for the first quarter of 1981, with the annual rate for all 12 months in the 1 percent-1.5 percent (adjusted) range.
Officials at Penril Corp. of Rockville, including President Kenneth Miller, expect a "good recovery" starting in the last six months of 1981 and expanding into a period of major growth during 1982 for the national economy. "A renewed emphasis on capital formation for the individual and institutional investor if the king pin in our nation's recovery program," according to the Penril assessment.
At ATSC Inc., a financial management services firm, forecasters see a long period of strong growth in the national economy after the current sluggishness. But locally, STSC officials are among those business leaders who see a somewhat slower economic growth rate. "This slowdown will be a result of the current administration's attempt to hold down federal spending," said Chairman Daniel Dyer.
Automobile dealer James Koons said: "We've hit rock bottom . . . the next six months will be a little tough but then things should begin to look up."
Woodward & Lothrop Chairman Edwin Hoffman summed up a major factor in any regional forecast when he pointed out that growth here in the 1960s was unparalleled. There was a slowdown in expansion rates during the 1970s. And now, says Hoffman, Washington still has a growing economy but not one that is bursting forth. "There is a general feeling of uneasiness," Hoffman adds.
Advertising executive Stuart E. Karu said "business in Washington is substantially slower than I've seen in many years," with much more attention being paid to how businesses are operated.
Luther H. Hodges Jr., chairman of National Bank of Washington, says area residents and leaders should anticipate continuation of a shift away from an economy based on the federal government "to an economy based on the strength of a growing private sector." This expansion will depend on retailing, research and development and high technology sectors, in his view.
Today's survey by The Post shows the extent to which those sectors already are growing here. And the overall survey points to be expansion of the private sector.
Companies listed here are 80 publicly traded or private firms with headquarters in the Washington area, plus 10 Virginia and 10 Maryland companies with headquarters elsewhere. The 100 firms are the largest companies in terms of assets, revenues, employes or influence within their economic sector and the D.C. region.
Figures for 1980 are for the calendar year unless otherwise noted. If a company is traded publicly, its marketplace is listed in parentheses -- NYSE for New York Stock Exchange, Amex for American Stock Exchange, OTC for over-the-counter, P for pacific, M for Midwest and Phila. for Philadelphia Exchange. Utlilities Chesapeake & Potomac Telephone Companies Decription: Four companies, wholly owned by American Telephone & Telegraph Co., serving D.C., Maryland, Virginia and West Virginia from central corporate office in Washington. (AT&T traded on Nyse, p, M, Phila.) 1980 TOTAL TOLL MESSAGES: 756 million. DIVIDENDS: $268 million (paid to AT&T). FOUNDED: 1893. TOP EXECUTIVE: Samuel E. Bonsack, president.
Earnings growth slowed last year (up 5 percent from 1979) because of inflaton and a reduced rate of growth for the regional economy. The C&P companies served 8.7 million telephones at year's end, a slim increase in recent years and partly reflects new competition for telecommunications services. Long-distance calls originating in the region were up 6.4 percent to more than 750 million, half the growth rate of 1979. C&P has expanded its sales staff to go after competitive business and now operates about 90 retail PhoneCenter outlets. Total construction spending of C&P last year was $922 million, with electronic-switching facilities accounting for a significant portion. By the end of this year, some 45 percent of C&P phones will be served by this switching system, which allows C&P to offer a variety of new services such as forwarding of calls to other numbers. Potomac Electric Power Co. DESCRIPTION: Washington-based electric utility serving about 500,000 customers in a 643-square-mile area that includes D.C., a small portion of Arlington County in Virginia (including Rossyln and the largest customer, the Pentagon), the populous Maryland suburbs and, through sales to cooperative, Southern Maryland. (NYSE, Phila., M). 1980 PROFITS PER SHARE: $2.10. DIVIDENDS: $61.7 million ($1.46 a share, since increased to $1.60 a year). FOUNDED: 1895. TOP EXECUTIVE: W. Reid Thompson, chairman and president.
Pepco uses mostly coal, which is relatively inexpensive and plentiful, to generate electricity. This should help keep rate increases below general price inflation. In addition, Pepco expects growth in energy demand and the peak demand for power in the summer to be modest, permitting the utility to minimize future construction. Last year was one of Pepco's best, with earnings up 21 percent. During the year, area regulatory agencies approved rate increases for Pepco customers totaling $60 million annually. Moody's Investors Service upgraded Pepco bonds and preferred stock from A to Aa, the only such improvement during 1980 for a U.S. utility. The firm's stability has permitted two dividend boosts: to 38 cents a share in the final two quarters of 1980 and first quarter of 1981, and now to 40 cents a share starting June 30 to holders of record May 28. After the board approved the latest boosts late last week, Chairman Thompson said: "This action demonstrates our continuing commitment to achieving dividend levels, which compensate fairly the owners of our business." Most owners of Pepco are area residents with small holdings, and many are retired persons who count on dividends as income. Washington Gas Light Co. DESCRIPTION: A distributor of natural gas throughout metropolitan Washington with subsidiaries serving the Shenandoah Valley area of Virginia and West Virginia and in Frederick County, Md. Davenport Insulation, Inc., another subsidiary, manufactures and installs insulation.The company has invested in natural gas drilling in various parts of the U.S. (NYSE, Phila.). 1980 PROFITS PER SHARE: $3.51. DIVIDENDS: $11.1 million ($2.52 a share, since boosted to $2.64 a share).
FOUNDED: 1848. TOP EXECUTIVES: Paul E. Reichardt, chairman; Donald T. Heim, president.
The somewhat recession-proof local economy has provided continued growth for Washington Gas. With local construction markets appearing to have continued strength, the company reports adding many new residential, commerical and industrial accounts last year. WGL added a new gas of 64 million therms in 1980, which represents a 6 percent increase from the prior year. The company also added 8,800 new meters in 1980. The company's capital budget of $67.3 million this year includes $36.7 million or 55 percent for new business. The firm has made tentative plans to sell more common stock in the spring, the first time in a decade. The biggest news in a long time for WGL investors was a major gas strike in Oklahoma early this year, by a venture in which the local firm has a 19 percent stake. The impact of this discovery on WGL earnings is still being studied, but it is possible that other producing wells will be found by a number of ventures in Oklahoma, in which WGL has an interest. Some analysts see sustained growth ahead for WGL profitability but that won't put a halt to rate increases locally, to cover higher expenses for regional gas distribution. Government-Chartered Corporations Federal National Mortgage Association (Fannie Mae) DESCRIPTION: Washington corporation, formerly a government agency, that supports a secondary market for home mortgages under Department of Housing and Urban Development regulation. FNMA is the nation's largest single owner of mortgages, bought from lending institutions with funds that are attracted through sales of debentures to investors and thus making more money available for mortgages during periods of tight money, such as in recent years (NYSE, M, P, Phila.). 1980 FEE INCOME: $58.6 million. LOSS ON MORTGAGE AND LOAN PORTFOLIO: $41.7 million. PROFITS PER SHARE: 23 cents (fully diluted). DIVIDENDS: 66 million ($1.12 per share, since reduced to 64 cents per share annually). FOUNDED: 1938 as a government agency and transformed into a private company in 1969 with 10 directors elected by stockholders and five appointed by the president. TOP EXECUTIVE: A. Oakley Hunter, chairman; David O. Maxwell, president.
Fannie Mae contined to act as an important source of funds for the residential mortgage market in 1980, an infamous year for the industry when traditional methods of home finance came under fire as obsolete due to high, volatile interest rates. The company didn't escape the year unscathed. High money costs created serious earnings problems for FNMA, which is among the nation's largest borrowers. The roller coaster rise and fall of interest rate levels during the year diminished local lending institutions' savings in-flows and profits, thereby reducing their ability to make mortgage loans. At the same time, the inability of consumers to obtain financing led to a slowdown in housing starts and brought the real estate industry to it knees. With current assets held by FNMA having an average life of more than 12 years and growing longer as the incidence of mortgage assumptions increases, the company must refinance that asset more than three times at current market rates. The cost of short-term liabilities remain high above the return of the long-term assets, which the company owns. The high exposure to interest rate fluctuations did not provide for a very profitable scenario and earnings plummeted. The dividend rate also was cut. New programs to change mortgage assumptions along with new resale finance and owner refinance programs, which provide incentives for the liquidation of older FNMA assets, should shorten average mortgage maturities.
FNMA also plans to offer second mortgages to owners and buyers of property on which FMNA holds the existing mortgage in an effort to provide the firm with shorter, higher-yielding assets. Officers said that in an atmosphere of the finance industry's deregulation, home finance will be tied more closely to the capital markets and that portends a more prominent role for FMNA. Fees have been increased while rate guarantees on some programs were shortened or eliminated to diminish the firm's exposure to interest rate fluctuations.
For the future, FNMA expects to diversify its home finance activities and restructure its portfolio to better match asset and debt maturities. The company feels that the major bridge to cross is matching asset yields and debt cost before the end of this year. U.S. Postal Service DESCRIPTION: Government corporation that is a successor to the old Post Office Department and is principal delivery agency for mail in the U.S. EXPENSES (fiscal year ended Sept. 30, 1980): $19.4 billion. U.S. APPROPRIATIONS: $1.6 billion. MAIL VOLUME: 106.3 billion pieces. FOUNDED: 1971, replacing a federal department which began in the English colonies in 1692. TOP EXECUTIVES: William Bolger, postmaster general; C. Neil Benson, deputy postmaster general; Robert L. Hardesty, board chairman.
The year promises to be one of controversy for the Postal Service, which recently boosted mail rates (installing an 18-cents-per-ounce first-class rate) and now wants to make the ZIP code a nine-digit number. Postmaster General Bolger has vowed to go after another rate increase, after his 20-cent stamp was turned down by the Postal Rate Commission. And some officials of the Reagan administration are going after the proposed new ZIP code, wanting evidence of its cost-effectivenss. Bolger says that postal rates will continue to reflect general inflation and that the only way to keep down postage costs is by reducing inflation. If ranked in Fortune magazine's list of leading firms, the Postal Service would be among the 15 largest.It is the third-largest civilian employer, behind American Telephone & Telegraph and General Motors. The 6 1/2 percent increase in mail volume last year was the largest single gain in postal service history, and parcel post volume was up 2.4 percent after 14 years of declines. At the same time, the federal subsidy was reduced by $92 million. Postal officials said worker productivity improved and that service standards were met claiming that 95 percent of all first-class mail deposited before 5 p.m. for local delivery was made the following day. Major attention will be devoted this year to the question of what role the Postal Service will play in electronic mail delivery. An Electronic computer originated mail test is due to start early in 1982. Student Loan Marketing Association (Sallie Mae) DESCRIPTION: Aprivate corporation established in D.C. by Congress to maintain a secondary market and warehousing facility for guaranteed student loans. Sallie Mae purchases student loans directly, and also lends money against student loans offered as collateral.The corporation obtains funds for its program activities primarily through the issuance of debt obligations guaranteed by the Secretary of Education. 1980 TOTAL INTEREST INCOME ON LOANS, NET: $274.6 million. WAREHOUSING ADVANCES AND INSURED STUDENT LOANS PURCHASED: $2.63 billion. NOTES PAYABLE: $2.7 billion. DIVIDENDS: $1.3 million ($8 a share). FOUNDED: Chartered by Congress in 1972. TOP EXECUTIVES: E. T. Dunlap, chairman; Edward A. Fox, president and chief executive.
Sallie Mae officials expect further strong growth in 1981 as rising student loan demand, coupled with high interest rates and reduced government aid to higher education, produce more interest in the corporation's secondary market services by banks, savings institutions, credit unions, state agencies and other institutions that make guaranteed student loans. In mid-May, Sallie Mae is expected to enter the private-capital markets by issuing short-term discount notes. That would be the first step in a transition from using the Federal Financing Bank to the private markets and Treasury officials have described this move as a prototype for other government-sponsored corporations. National Railroad Passenger Corp. (Amtrak) DESCRIPTION: Government-subsidized company in Washington that operates virtually all American intercity passenger trains, serving 500 communities in 44 states over 24,000 miles of track. RIDERSHIP (fiscal year ended Sept. 30, 1980): 21.2 million passengers. FOUNDED: 1971, as successor to most private rail passenger operations in service at that time. TOP EXECUTIVES: Alan Boyd, president; James R. Mills, chairman of the Board. For Amtrak, 1981 is a 10th birthday year. The key question, given the Reagan administration's advertised determination to reduce Amtrak subsidies sharply, is how many more birthdays there will be to celebrate. To date, Amtrak officials have defended current spending levels and Congress will make the final decision. One of the 20 largest area employers (1,400 persons at headquarters plus 900 operational workers here), Amtrak's impact on the U.S. economy last year was $5.2 billion.That includes $2.6 billion of direct spending, largely for improving facilities, plus the spending that comes as a result of Amtrak's money. Amtrak's on-time performance jumped 21 percent over the previous fiscal year to a record high while complaints fell by 40 percent. By next fall, Amtrak will have replaced all passenger cars in its system with new or totally rebuilt cars. The engine fleet, which averaged 22 years of age in 1972, is now an average six years old. And Amtrak is providing 10.93 passenger miles per public dollar in 1981 vs. 7.52 miles in 1978. When the Boston-Washington corridor improvements now in progress are completed, Amtrak expects business on that route to jump from an estimated 16 million riders in fiscal 1982 to almost 16 million in the first year. This corridor service is one that even the Reagan team is likely to support for some time, although rail passenger service has been assigned a low priority. Federal and state government operating subsidies to Amtrak in the recent year totaled $658 million. Transportation Southern Railway Co. DESCRIPTION: Railroad freight transportation company serving a 10,000-milej territory in 13 states from Washington south to New Orleans, from Cincinnati south to Jacksonville, and to Memphis and St. Louis (NYSE,P). 1980 PROFITS PER SHARE: $1.57. DIVIDENDS: $59.4 million ($3.68 per share, since boosted to $4.24 annually.) FOUNDED: 1894. TOP EXECUTIVE: Harold H. Hall, president and chief executive officer.
There were two major developments last year affecting the future of Southern, one of the nation's most profitable and most efficient transportation firms. A new degree of marketing and pricing freedom was granted all the railroads under the Staggers Rail Act passed during 1980. And the Interstate Commerce Commission moved forward with consideration of Southern's plans to merge with Norfolk and Western Railway of Roanoke, to form a strong challenger to the giant CSX Corp. (a merger of Chessie System and Seaboard Coastline railroads that took place last Nov. 1). The Staggers Act provides railways with new methods of marketing and pricing transportation services. The railroads will have greater freedom in setting the rates which they may charge, after decades of price regulation. As for CSX, Southern and N&W set a preliminary agreement on June 2, 1980, the proposed consolidation of the two railroads has progressed steadily. The agreement calls for a new holding company to acquire the common stock of both railroads in an exchange valued at nearly $2 billion. Terms of the exchange set one share of the stock of the new holding company, NWS Enterprises, Inc. for each share of N&W stock, and 1.9 shares of NWS for each share of Southern common stock. Outstanding preferred stock would remain unchanged. The two railroads would retain their separate managements but would be owned by the holding company as an 18,100-mile rail network serving 21 states and part of Canada. Directors of both railroads approved the agreement on July 22, with stockholders of both companies adding their approval in a separate meeting on Nov. 7. ICC hearings as the application are expected to begin in late spring with the final ruling expected sometime in early 1982. Southern's management emphasized that the pricipal benefit of the consolidated system would be the establishment of five major new routes to provide improved service for coal, grain, and inter-modal traffic movements. USAir Inc. (Formerly Allegheny Airlines) DESCRIPTION: One of the nation's largest domestic passenger airline in terms of riders, serving the northeastern and midwestern states as well as Florida, Texas, North Carolina, Alabama, Louisiana, Arizona and two provinces of Canada. USAir's headquarters is at National Airport (NYSE, Phila.). 1980 PROFITS PER SHARE: $4.71. DIVIDENDS: $4.7 million (9 cents per share on common stock; current annual rate is 12 cents per share). FOUNDED: 1939. TOP EXECUTIVE: Edwin Colodny, chairman and president.
USAir posted record earnings of $60.4 million for 1980, an increase of 81 percent over the former record in 1979 and the second highest reported in the industry for the year. Revenues for 1980 were $971.8 million compared with $728.7. The airline found the positive results for 1980 especially gratifying considering the general industry's downturn. For six consecutive quarters USAir has enjoyed improvment in net earnings as compared with the same quarter the prior year. In addition to the positive-profit performance, the airline managed to realize several corporate objectives, including the improvment of route networks helping to fully develop markets added last year. "Sustained levels of passenger traffic, coupled with the greater flexibility granted by the Civil Aeronautics Board to price our product to recover the increases cost of doing business, contributed to our performance," Chairman Colodny wrote in the annual report. USAir carried 14.3 million passengers during the year and is now involved in low-fare competition on some routes as competition grows for air travelers. The near-term outlook is for reduced profits, as a consequence of fare wars and continued inflation. Communications, Publishing The Washington Post Co. DESCRIPTION: Owner of The Washington Post, Everett (Wash.) Herald and Trenton (N.J.) Times newspapers; Newsweek and Inside Sports magazines; four TV stations and interests in the International Herald Tribune, a news service and newsprint operations (Amex). 1980 PROFITS PER SHARE: $2.44. DIVIDENDS: $6.16 million (44 cents a share; the current annual rate has been raised to 50 cents per share). FOUNDED: 1877. TOP EXECUTIVE: Katharine Graham, chairman and chief executive.
1980 was a year of growing pains for the Post Co., as several new projects ate into earnings. But Chairman Graham emphasized that the firm was aware of the costs in a recessionary year and pressed ahead "because we felt they were right for the long-range development of our business." Key items included starting up a $68 million suburban printing plant in Northern Virginia for The Washington Post, to help handle a continuing rise in circulation, and the launching of Inside Sports. The latter was the first new magazine started by the Post Co., and it suffered an initial year loss of $12 million, higher than forecasted originally. Overall company operating profits fell $8.7 million to $34.3 million, and Graham expects that after a slow first quarter in 1981, improved results will follow. Meanwhile, the Post Co. has a heavy spending program that includes $10 million to modernize downtown presses here, the start of a Sunday newspaper in Everett, Wash., production of several television series and completion of a new $13 million center for its Detroit television station. Mark Meagher stepped down from the Post Co. presidency at the end of 1980 and recently took a similar post at Penthouse magazine. A successor to Meagher has not been named. Communications Satellite Corp. (Comsat) DESCRIPTION: Comsat and a subsidiary, Comsat General Corp., are engaged primarily in providing international, maritime and U.S. domestic communications satelite services. Comsat also is one of three owners (along with Aetna Life & Casualty and International Business Machines Corp.) of Satellite Business Systems, in McLean, which is developing a major satellite communications business for the 1980s and which is expected to become one of the area's major corporations itself within a few years. A Comsat subsidiary, Environmental Research & Technology, provides consulting, planning and computer-based information services (NYSE, M, P, Phila.). 1980 PROFITS PER SHARE: $4.79. DIVIDENDS: $18.4 million ($2.30 per share). FOUNDED: 1963. TOP EXECUTIVES: John D. Harper, chairman; Joseph V. Charyk, president and chief executive officer.
Comsat completed a reorganization last year that was designed to emphasize its global satellite communications systems responsibilities (as U.S. participant in the international telecommunications consortium), and to get ready for the new domestic communications markets made possible by rapid changes in technology. The SBS venture successfully launched its first satellite and Comsat's earnings fell slightly, because of investments in new projects (including specialized communications equipment manufacturing). International service rates were reduced 11.8 percent on Jan. 1, for an estimated savings by customers of $20 million this year. By far Comsat's most dramatic business proposal is a system to provide subscription television service directly to U.S. houses by satellite, which has attracted a bevy of opponents in Federal Communications Commission proceedings. Comsat is moving ahead with its plans, hoping to start such a service in three to four years. MCI Communications Corp. DESCRIPTION: Specialized telecommunications common carrier, based in Washington, which owns and operates the nation's second-largest common carrier radio network. Built at a cost of more than $200 million, MCI's network serves 76 major metropolitan areas with 3,500 communities and more than 60 percent of the U.S. telephones. The D.C. firm competes with American Telephone & Telegraph in providing long-distance services but does not manufacture equipment or offer local telephone exchange service.Business telephone service is MCI's major market (OTC). 1980 (CALENDAR YEAR) PROFITS PER SHARE: 23 cents. DIVIDENDS: None on common stock. Total payout for preferred was $10.63 million ($1.80 per share for one series and $1.84 for the other). FOUNDED: 1968. TOP EXECUTIVES: William McGowan, chairman; V. Orville Wright, president.
MCI is expecting to reap the rewards of last year's invesments which included broadening the company's network and subscriber base, especially in the residential service area. The big antitrust trial of U.S. vs. AT&T continues to be watched carefully by the company, which competes directly with the Bell Systems for long-distance intercity telecommunications business. At stake is a $30 billion business in long-distance communications, growing at a compounded annual rate of 15 percent. MCI uses microwave technology for most of its transmission of voice, data and facsimile signals. The Bureau of National Affairs Inc. DESCRIPTION: A private Washington Business, owned entirely by employes, that publishes legal, economic, labor, tax, financial, environmental, safety and energy information for business and professional users. 1980 PROFITS PER SHARE: $2.64. DIVIDENDS: $1.8 million ($1.02 per share). EMPLOYES: 1,680. FOUNDED: 1929. TOP EXECUTIVES: John D. Stewart, chairman and chief executive officer; William A. Beltz, president and editor in chief.
BNA officials emphasize that the need for information remains insulated from the political and economical turbulence so long as the provider of information can react swiftly to change. BNA plans to introduce at least two new publications this year in an effort to monitor new topics. Pubco Inc. DESCRIPTION: A Glenn Dale, Md., holding company for printing companies and publishers. It ranks among the nation's largest commercial printers but is closing the printing operations at its local Merkle Press subsidiary after losing most business (OTC). 1980 PROFITS PER SHARE: 32 cents. DIVIDENDS: None. FOUNDED: 1959. TOP EXECUTIVES: Charles W. Lockyer, chairman and president; Hannalore Hylton, executive vice president; Charles W. Lockyer Jr., vice president, chief financial officer and treasurer.
Despite some internal problems and high interest rates, Pubco managed to post a record year for sales in 1980 at $58.43 million. Net income per share of 23 cents compared favorably with last year's 24 cents a share (with a fewer shares outstanding) and reflects a total new income for the year of more than $882,000. Merkle Press, probably Pubco's best-known subsidiary, faces imminent closing due to "an inability to increase sales," according to a company spokesman. That plant employs 430 persons. Pubco anticipates that after initial losses caused by the closing, consolidated earnings from operations will be substantially improved and will be reflected in 1982. Other Pubco printing operations in the District, Chicago, St. Louis and New York will not be affected by the closing. "1981 will be a year of consolidation for us," said Charles W. Lockyer, president of the firm. "We see earnings improving as we cut down on less-profitable operations and expand our more profitable ones. The results will show up by 1982." Allbritton Communications DESCRIPTION: Washington-based owner of television stations in D.C. (WJLA-TV), Lynchburg, Va., and Charleston, S.C.; daily newspapers in Union City and Paterson, N.J.; and weeklies in Massachusetts. 1980 POFITS PER SHARE: Unknown. DIVIDENDS: Unknown. FOUNDED: 1978. TOP EXECUTIVE: Joe L. Allbritton, owner.
Financier Allbritton is best known in recent weeks as the victor in his bid to buy 40 percent of the stock in Riggs National Bank, of which he now has the controlling interest. But Allbritton Communications remains a key part of his $200 million empire, principally because Channel 7 here is said to be a money-making machine. Pending at the Federal Communications Commission is an Allbritton bid to buy KCKN radio of Kansas City. Chemical Bank of New York has agreed to loan $2.7 million to Allbritton over seven years, at 1 percent above the prime rate, to complete the deal. Finance, Insurance Riggs National Bank DESCRIPTION: The largest commercial banking business in the Washington area and owner of Central Charge Service, the region's largest credit card system (OTC). 1980 PROFITS PER SHARE: $8.13. LOANS: $1.56 billion. DEPOSITS: $2.5 billion. DIVIDENDS: $8.98 million ($3 a share, including extra; current annual rate is $2.80 a share). FOUNDED: 1836. TOP EXECUTIVES: Vincent C. Burke Jr., chairman; Daniel J. Callahan III, president.
For the first time in its notable history, Riggs is holding its annual meeting this week outside the bank to accomodate what is expected to be a larger-than-usual crowd. For one thing, stockholders will be asked to approve formation of a bank holding company (Riggs National Corp., already incorporated as a shell in Delaware), which officers see as a valuable tool in the event laws are changed and some form of interstate banking is approved in the next few years. There also is great interest in the future role at Riggs of financier Joe L. Allbritton, who recently acquired 40 percent of the stock. To date, Allbritton has said he wants to be an investor and not a bank manager (he's done that already in Texas). Some analysts expect Allbritton to bring some new ideas for business expansion with him to board meetings. Earnings of Riggs last year were at record levels for the third consecutive year as assets topped the $3 billion mark, up 17 percent. In the first quarter of 1981, assets rose to $3.24 billion. A small group of D.C. activists has organized a campaign to complain about some foreign loans (including funds allegedly loaned in South Africa) and to require a larger commitment of Riggs' resources to the city. The activists are fighting new branch applications in the meantime. Riggs has expanded consumer lending locally while opening or preparing to open foreign-business offices in London, Hong Kong and Miami (for South America). American Security Corp. DESCRIPTION: Holding company whose principal subsidiary is American Security Bank, the second-largest commercial bank in Washington (but first in trust operations).Other businesses include mortgage banking, property management, insurance and travel (OTC). 1980 PROFITS PER SHARE: $6.62. LOANS: $1.5 billion. DEPOSITS: $2.2 billion. DIVIDENDS: $8.1 million ($2.25 per share). FOUNDED: Holding company was formed in 1957; corporation traces its beginnings to that of a predeccessor bank, National Metropolitan, in 1814, although ASB first was incorporated in Virginia in 1889 and, in D.C., in 1890. TOP EXECUTIVE: W. Jarvis Moody, chairman, president and chief executive officer.
Now under the auspices of Chairman Moody, American Security Banks is making a run to become the No. 1 bank in Washington. Moody has a corporate philosophy that emphasizes the strengthening of local accounts. Previously, the bank firm had aggresively tried to attract out-of-town business, which some analysts feel contributed to a breakdown in quality control of the loans booked. As management began to realize the diminishing quality of their local business, the emphasis shifted to strengthening the home-base financing. A small purge of sorts took place in the upper management as 14 of former Chairman Carleton Stewart's imports were quietly replaced and Moody took control. He has said ASC will continue its string of annual earnings increases that has been maintained for two decades. And Moody also is in the camp of those who support interstate branching. The firm's annual report includes a commentary on the situation and Moody says that current restrictions on branching across state lines limit bank expansion, discourage competition, protect inefficient operations and working to the detriment of all banking consumers. Financial General Bankshares Inc. DESCRIPTION: Bank holding company with financial institutions in Washington, Virginia, Maryland, Tennessee and New York (Amex). 1980 PROFITS PER SHARE: $2.24. LOANS: $1.3 billion. DEPOSITS: $2.05 billion. DIVIDENDS: $2.5 million (40 cents a share) plus 5 percent stock dividend. FOUNDED: 1925. TOP EXECUTIVES: B. Francis Saul II, chairman; J. William Middendorf II, president and chief executive officer.
On some day later in 1981, control of this major bank holding company probably will shift to group of Middle Eastern investors. After a long struggle, the takeover is expected to win governmental approval and Washingtonians will find a new power in regional banking, because the new ownership is expected to press for aggressive growth, including a new emphasis on international business. Locally, the First American Banks owned by Financial General already have launched what amounts to a form of regional banking by offering some automatic teller services at 55 area locations to customers in all three jurisdictions. This is possible because the firm owned banks in the three areas before laws were changed to prevent such interstate operations. Last year was the fourth consecutive year of record earnings for Financial General. The company owns or controls 1st American of D.C. (formerly Union First, a merger of the old Union Trust and First National); 1st American of Maryland, based in Silver Spring; 1st American of Virginia, of McLean; Bank of Commerce in New York Valley Fidelity of Knoxville; Community of Albany; Shenandoah Valley National of Winhester; Valley National of Harrisonburg; Peoples National of Leesburg; Eastern Shore National of Pocomoke City; Md.; Round Hill National in Virginia and First National of Lexington. National Rural Utilities Cooperative Finance Corp. DESCRIPTION: Nonprofit Washington cooperative that provides more than 900 rural electric system members with financing to supplement federal loans from the Rural Electrification Administration. CFC represents about 9 million consumers of electricity in rural areas from its Georgetown headquarters. 1980 OPERATING INCOME (fiscal year ended May 31, 1980): $159 million. FOUNDED: 1969. TOP EXECUTIVES: Charles B. Gill, governor and chief executive officer.
CFC makes available five types of loan programs to member systems: long-term secured loans, intermediate-term loans, short-term line-of-credit loans, weatherization loans for energy conservation and guarantees for tax-exempt bonds to finance acquisition of pollution-control equipment for power-supply systems. MOODY'S RANKS CFC 19th among 320 commercial paper (corporate IOU) issuers whose outstanding volume is in excess of $50 million. First Virginia Banks Inc. DESCRIPTION: A Falls Church bank holding company for First Virginia Bank of Northern Virginia and 20 other commericial banks throughout the state, with 170 offices overall (NYSE, Phila.) 1980 PROFITS PER SHARE: $1.42. LOANS: $958 million. DEPOSITS: $1.39 billion. DIVIDENDS: $5.7 million (52 cents a share, currently at rate of 55 cents per share annually). FOUNDED: 1949. TOP EXECUTIVES: Thomas K. Malone Jr., chairman and chief executive officer; Robert H. Zalokar, president.
Assets rose 8 percent last year while deposits expanded by 7 percent, about the same rate of increase as in 1979 and a reflection of slower economic growth in Virginia during 1980.Earnings from operations were up 9 percent for the year and jumped 26 percent in the first quarter of 1981. Loan volume was up 4 percent last year but declined slightly in the first quarter from the year-end figure. Suburban Bancorporation DESCRIPTION: Hyattsville-bases bank holding company for Suburban Trust Co., the largest bank in the Maryland suburbs of Washington and fourth-largest in the state, as well as Thurmont Bank in Central Maryland and Suburban Bank in Hancock and Hagerstown, and leasing and mortgage subsidiaries.The firm describes itself as the first billion-dollar suburban bank holding company in the nation (OTC). 1980 PROFITS PER SHARE: $3.53. LOANS: $852.5 million. DEPOSITS: $1.26 billion. DIVIDENDS: $7.8 million ($1.65 per share). FOUNDED: 1915. TOP EXECUTIVES: Robert Tardio, chairman and chief executive officer of the holding company and Suburban Trust Co.; G. J. Manderfield, president of STC.
Suburban is moving in many directions at once. It is building a new headquarter complex near Montgomery Mall, and it is seeking to build new business by reorganizing around products groups, convinced that the financial services revolution will only help the bank firm because of preparations for changed services that have been in progress for some time. For one thing, Suburban may join a D.C. bank (rumors say Riggs) and a Virginia institution to offer jointly the services of automatic teller machines. This would set up a venture to rival that of the First American Banks (see Financial General, above). A modest 4.7 percent growth in average assets last year was attributed to uncertain economic conditions and volatile interest rates. The demand for commercial and consumer loans declined considerably and average loan volume was down about $18 million for the year. Geico Corp. DESCRIPTION: Holding company for Government Employees Insurance Co., which is a major automobile insurance engaged in writing preferred-risk (persons with fewer than average accident claims) policies, as well as homeowners insurance. Criterion Insurance Co., another wholly owned unit, writes standard auto and motorcycle insurance, while Government Employees Life (majority owned) sells life policies and related products. Government Employees Financial Corp., of Denver (also majority owned) provides diversified financial services, including small loans. Resolute Group, a new wholly owned subsidiary, will write property and casualty reinsurance for U.S. and international markets. (NYSE). 1980 CONSOLIDATED WRITTEN PREMIUM VOLUME: $653.0 million (Geico's portion was $544.9 million). INCOME FROM OPERATIONS: $59.6 million. PROFITS PER SHARE: $2.59 on operating income and $2.64 on net income of $60.8 million. TOTAL PROPERTY AND CASUALTY POLICIES IN FORCE: $1.63 million. DIVIDENDS: $8.9 million on common stock (43 cents a share, since increases to 48 cents annually.) FOUNDED: 1936. TOP EXECUTIVES: John J. Byrne, chairman; Paul J. Hanna, vice chairman and chief financial officer; William B. Snyder, president.
Geico officers expect continued profits from underwriting insurance policies but 1981 looks more difficult than last year. Property casualty premiums should pick up a little while life premiums may grow only sluggishly. Investment income should continue to grow at only a modest pace as Geico sticks to a strategy of protecting the value of its investment portfolio ($1.06 billion). Like other bond market investors in 1980, Geico took a beating from soaring interest rates, and changed its investment focus to total return and long-term appreciation instead of current income. Geico dividends should continue to increase as will earnings per share, officials said, but the pace may slow somewhat. Last year, net income was off 18 percent. One major investment late in 1980 was Geico's decision to increase its holdings in Avemco Corp. of Bethesda to 22 percent from 5 percent. The purchase was made with the approval of management at Avemco, the nation's largest insurer of aircraft (some analysts said Geico was a "white knight," stepping in to thwart a possible takeover of Avemco by outsiders). Perpetual-American Federal Savings & Loan Association DESCRIPTION: The largest savings institution in the Washington region, the 55th largest S&L in the U.S., and the only area S&L to top $1 billion in assets, with 21 offices (four in Maryland, established before the government halted interstate branching) including the downtown D.C. headquarters. It is a mutual S&L, owned by depositors, with subsidiaries engaged financial services and the mortgage business. SAVINGS ACCOUNTS: $1.1 billion. 1980 NEW LOANS ORIGINATED: $180 million. RESERVES: $120 million. FOUNDED: 1881. TOP EXECUTIVE: Thomas J. Owen, chairman and chief executive.
Perpetual rebounded last year after a net loss in 1979, the first in its history. The merger with American gives the combined institution new financial muscle in a world of checking-account competition with commercial banks. Moreover, Chairman Owen is continuing to push hard for interstate branching. He threatened to sue federal agencies if D.C.-based savings institutions were not permitted to bid for control of the troubled County Federal S&L of Rockville. If Perpetual takes over County (a number of other S&Ls also have expressed an interest), it would become the first interstate savings association merger in recent decades. Diverse financial services are seen necessary for S&L survival today as these institutions move away from a historic concentration on mortgage lending that has produced operating losses for many (which have mortgages in their portfolios earning at rates far below the current market). Columbia First Federal Savings and Loan Association DESCRIPTION: Currently, the area's second-largest S&L after a March 1 merger of Columbia Federal and First Federal of Washington. Columbia First has 15 offices, including one in Maryland. SAVINGS DEPOSITS (March 1, 1981): $728.6 million. MORTGAGE LOANS: $841.4 million. RETAINED EARNINGS (reserves plus surplus): $62 million. FOUNDED: 1907. TOP EXECUTIVES: Clarence E. Kefauver Jr., chairman; T. William Blumenauer Jr., president and chief executive; Dewitt T. Hartwell, executive vice president and chief administrative officer.
Following a pattern of mergers by Washington-area thrifts, Columbia and First Federal, the third and sixth ranked S&L's in the District, joined forces earlier this year. Navy Federal Credit Union DESCRIPTION: Largest credit union in the world, with 60 offices worldwide and a headquarters in Vienna to serve 517,000 members. PROFITS PER SHARE: 32 cents. DIVIDENDS TO MEMBERS: 7 percent rate. FOUNDED: 1933. TOP EXECUTIVE: Vice Adm. V. A. Lascara, USN (retired), president. National Bank of Washington DESCRIPTION: Commercial bank with 25 branch offices in the District. The United Mine Workers union owns 3/4 of the bank's stock (OTC). 1980 PROFITS PER SHARE: $2.91. LOANS: $519.7 million. DEPOSITS: $671.3 million. DIVIDENDS: $2.75 million ($2 per share). FOUNDED: 1809. TOP EXECUTIVES: Luther H. Hodges Jr., chairman and chief executive officer; C. James Nelson, president.
In 1980, the National Bank of Washington did not perform satisfactorily. Earnings decreased 42 percent to a level of $4 million. Questionable loan practices led to a massive internal audit, restructuring of both senior management and the board of directors, and significant losses in the loan portfolio.The problems and resultant corrective actions have caused Chairman Hodges to forecast an excellent outlook for the bank in 1981. NBW is financially sound and has the economic base needed to be among the area's strongest and most successful financial institutions. In 1981, NBW plans to improve its retail and commercial customer services, form a bank holding company and elect an international banking advisory board to strengthen its postion in the international marketplace.In addition, NBW is looking forward to meeting the challenges posed by new federal banking regulations regarding interstate branch banking. Acacia Mutual Life Insurance Co. DESCRIPTION: A mutual life insurance company in Washington is the major business of the Acacia Companies, which also sell annuity contracts and market video-based training courses (Educational Products Corp.). 1980 NET GAIN FROM OPERATIONS BEFORE DIVIDENDS: $27.4 million. LIFE INSURANCE SALES: $713.7 million. POLICIES IN FORCE: 343,650. DIVIDENDS TO POLICYHOLDERS: $22 million. FOUNDED: 1869. TOP EXECUTIVES: Daniel L. Hurson, chairman and chief executive officer; Duane B. Adams, president and chief operating officer.
Acacia posted record sales of $713.7 million last year, up more than 24 percent from the prior year.With $4.8 billion of total life insurance in force the company is one of the largest in the industry. Acacia officers anticipate that 1981 will be another record year. National Permanent Federal Savings & Loan Association DESCRIPTION: Third-largest of some 50 S&Ls in the greater Washington area with 12 offices including the main D.C. headquarters tower; with subsidiaries engaged in real estate development, insurance and mortgage banking. 1980 PROFITS: Uknown. MORTGAGE LOANS: $663.2 million. ALL OTHER LOANS: $7.8 million. SAVINGS DEPOSITS: $543.8 million. FOUNDED: 1890. TOP EXECUTIVES: John W. Stadtler, chairman and chief executive officer; Edgar F. Peterson, president and chief administrative officer. First Variable Rate Fund For Government Income Inc. DESCRIPTION: An open-end investment company (mutual fund) that invests solely in U.S. Government-backed securities. The Fund is a money-market type fund. 1980 GROSS INVESTMENT INCOME: $46.6 million. PROFITS PER SHARE: 12 cents. DIVIDENDS: $43.1 million (12 cents per share). FOUNDED: 1976. TOP EXECUTIVES: D. Wayne Sibly, chairman; John G. Guffney Jr., president.
First Variable officers small investors the high yields currently available on money market securities while maintaining access to their funds through telephone redemptions and check writing. In the first two months of 1981, the Fund grew over $100 million, while paying investors an average yield of 17 percent. Fund officers said they expect continued growth as investors seek high investment returns in these times of double-digit inflation. However, the possiblity exists that in 1981 legislation detrimental to money funds will be enacted in response to intense lobbying pressure by the banks. Citizens Bank & Trust Co. Of Maryland DESCRIPTION: Riverdale-based commercial bank serving Maryland with 59 offices (OTC). 1980 PROFITS PER SHARE: $6.81. LOANS: $385.6 million. DEPOSITS: $543 .5 million. DIVIDENDS: $3.9 million ($2.80 per share). FOUNDED: 1928. TOP EXECUTIVES: Alfred H. Smith, chairman and chief executive officer; Alfred H. Smith Jr., vice chairman; Robert Bone, president.
Citizens posted record results for 1980 due to a 38 percent increase in fourth-quarter earnings which offset declines in the first three quarters. Fluctuations in interest rates resulted in a 4 percent decline to net loans and an increase of 24 percent in operating expenses. Citizens opened two offices during the year -- in Clinton and Ellicott City -- and reached a merger agreement with Century National Bank. International Bank DESCRIPTION: A holding company for diversified financial services and merchant banking operations in 50 states and 38 foreign countries with investments in manufacturing, insurance, finance, leasing, foreign corporate formation and maritime administration (for Liberia) and overseas banking. However, IB is not a bank in normal American business parlance and there are no "bank" branches here (OTC). 1980 PROFITS PER SHARE: $1.06. DIVIDENDS: $4.7 million (37 cents per share). FOUNDED: 1920. TOP EXECUTIVES: George Olmsted, chairman and president; Guy Martin, vice chairman and president; W. Hugh McNaughton, executive vice president for finance.
During 1980 IB contended with spiraling inflation, sky-rocketing interest rates, depression in the automotive and construction industries and recession-level unemployment. Yet, IB continued to grow and be profitable. Having acquired 100 percent ownership of its major subsidiaries in 1979 and restructured its long-term debt in 1980, IB reduced both operating and interest expenses and entered 1981 with a strong balance sheet showing a debt-to-equity ratio of one to 3.5. Johnston, Lemon & Co. Inc. DESCRIPTION: Washington's largest broker-dealer and investment firm, in terms of accounts, employes and securities underwriting, with three offices. TOTAL OWNERSHIP EQUITY: $4.6 million. TOTAL EQUITY AND SUBORDINATED LIABILITIES: $4.6 million. ACCOUNTS: 12,500 TOP EXECUTIVES: Harvey B. Gram Jr., chairman; James H. Lemon Jr., president; Julian E. Gillespie, executive vice president.
In terms of capital, Johnston, Lemon ranks 126th in the nation's securities industry. The firm is expanding in corporate finance and maintains departments specializing in retirement, annuities, insurance, tax shelters and personal financial planning. Johnston, Lemon participates in more underwriting and syndication of offerings than any other area firm and has more employes and accounts, but it ranks second to Folger Nolan Fleming Douglas Inc. in terms of total capital (ownership equity), which is $6 million at Folger Nolan. INDUSTRIAL, FOODS Martin Marietta Corp. DESCRIPTION: Bethesda-based firm engaged in five principal 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 cement. aThe chemicals division makes concrete and dyestuff. And an aggregrate company quarries crushed stone, sand and gravel. (NYSE) 1980 PROFITS PER SHARE: $7.55 DIVIDENDS: $57.8 million (2.32 per share, since increased to $2.52 annual rate). FOUNDED: 1909. TOP EXECUTIVES: J. Donald Rauth, chairman and chief executive; Thomas G. Pownall, president and chief operating officer.
Overall, last year was a good one for Martin Marietta -- the fourth consecutive year of record earnings for the firm. Some areas fared better than others, with the strongest performance reported in the aerospace field. The aluminum and specialty chemical production business also had good results while cement and construction areas did not do quite as well. The corporation is planning an aggressive capital formation program aimed at increasing production capacities in all areas of business. New projects authorized since 1978 total $1.3 billion, including new starts of $390 million this year. Mars Inc. DESCRIPTION: Based in McLean, Mars is one of the largest privately held companies in the United States. It 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. ASSETS: Offices and plants in McLean, Hackettstown, N.J., Vernon, Calif., Houston, Britain, Australia, Belgium, Netherlands and West Germany. 1980 DIVIDENDS: Unknown FOUNDED: 1920 TOP EXECUTIVES: Company will not disclose names.
Mars manages to keep its operations a closely guarded secret since all of its stock is owned by Forrest E. Mars Sr., the founder of the company, his two sons, other family members and the tax-exempt Mars Foundation. According to Advertising Age, the company spend $41 million in advertising in 1978, making it the 71st largest U.S. advertiser. A 1978 Business Week cover story on Mars estimated that the firm earns profits equal to 6 percent of sales and 14 percent on investment -- a range of $90 million to $120 million. In an unusual move for a major company, Mars last year increased the size of its candy products while keeping prices even. Fairchild Industries Inc. DESCRIPTION: This Germantown-based diversified, high-technology company makes military and commercial aircraft, spacecraft and electronics hardware, domestic satellite communications and specialized industrial products. (NYSE) PROFITS PER SHARE: $3.97 DIVIDENDS: $8.8 million (69 cents per share annually raised to 80 cents annually during year). FOUNDED: 1936. TOP EXECUTIVES: Edward G. Uhl, chairman and chief executive; John F. Dealy, president and chief operating officer; Charles Collis; executive vice president.
With the purchase of VSI Corp. on a proforma basis, Fairchild sales now exceed $1 billion. Fairchild acquired VSI in November in an exchange of cash and preferred stock. California-based VSI is a diversified manufacturer of precision metal products. During 1981, Fairchild will be deploying significant assets to support internal growth as well as evaluate other merger and acquisition opportunities. Last year, the A-10 military aircraft was the main factor in the increased sales and earnings with annual production of the close air-support aircraft reaching 144. Under the company's joint venture with Saab-Scania of Sweden, design work was started by Fairchild Republic on a new turbo-prop airliner. Work also began on three structural subcontracts from the Boeing Co. for production of 757 aircraft. Sales for Fairchild Swearingen, the commercial aircraft subsidiary, passed the $100 million mark last year for the first time. A partnership between Fairchild's American Satellite subsidiary and Continental Telephone was implemented in 1980; Continental obtained a 50 percent ownership in American Satellite for $12 million with Fairchild having preferential rights to $22 million of the profits from the partnership. Another partnership, Space Communications Co., was formed with subsidiaries of Western Union, Continental and Fairchild. The company will procure and operate the tracking and data relay satellite system for the National Aeronautics and Space Administration. Fairchild intends to continue its pursuit of Bunker Ramo Corp., a manufacturer of electric connectors, electronic components and information processing and display systems. Fairchild has already invested $30 million in Bunker Ramo and placed two directors on its board. Dynalectron Corp. DESCRIPTION: A diversified electrical engineering, contracting, aviation services and energy research company based in McLean (Amex). 1980 PROFITS PER SHARE: 65 cents. DIVIDENDS: $583,000 (8 cents per share, since increased to 10 cents). FOUNDED: 1946. TOP EXECUTIVES: Jorge Carnicero, chairman; Charles Gulledge, president; M.F. Richards, executive vice president and chief operating officer.
Last year, Dynalectron achieved record net earnings of more than $5 million on revenues of $442.6 million which were the largest in the firm's history. The company has made plans to improve its financial strength by entering both the long-term convertible debt and equity markets. Despite a failure to renew, in competition, a major contract for the operation of the Department of Transportation's test center in Colorado, Dynalectron's technical services group achieved advances in revenues and earnings and received two multiyear contracts earlier this year, valued at about $100 million. Hydrocarbon Research Inc., a subsdiary, began operation of its 600 ton-a-day H-Coal pilot demonstration plant to convert coal to synthetic crude in Catlettsburg, Ky., and recently a 45-day continuous test run was successfully completed. Preliminary design was begun on a 50,000 barrel-a-day commercial H-Coal plant proposed for construction in Breckinridge Country, Ky. UNC Resources DESCRIPTION: The nation's largest independent uranium producer. 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,M,Phila,-Midwest). PROFITS PER SHARE (Fiscal year ended March 31, 1980): Net loss. DIVIDENDS: $4.2 million (40 cents a share; payment of dividends has since been temporarily suspended). 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.
With the future of the nuclear industry a big question mark and the demand for uranium falling. UNC made a bid to diversify recently by making it known it was interested in buying Western Air Lines. UNC has been making other efforts to reshape its operations recently. It sold its coal mining subsidiary to Getty Oil last year, netting $29 million for UNC. Last month, the Australian goverment approved the sale of a 50 percent interest in another subsidiary, Teton Exploration Drilling Co. Pty., Ltd., to an Australian gold mining firm. "Buying Western Air Lines, located in one of the nation's major growth areas and possessing one of the industry's most modern fleets, represents an unusual opportunity to profit from a projected economic upturn," president Keith A. Cunningham told shareholders in the company's third quarter report. UNC also announced last week that it has agreed to acquire National Tool Co., of Richmond, Ind., a manufacturer of custom and standard automated heavy machine tools with sales of $35 million a year. Pargas Inc. DESCRIPTION: A Waldorf, Md., distributor of liquefied petroleum and equipment for its use and storage, with coal mining subsidiaries (SYSE, Phila.). 1980 PROFITS PER SHARE: $3.03. DIVIDENDS: $4.17 million ($1.16 per share since increased to $1.24 annually). FOUNDED: 1936 as Parlett Gas Co. TOP EXECUTIVE: N. L. Langley, president No chairman at present.
In 1980, the company expanded its trading area by purchasing LP-gas marketers in Mississippi, Delaware and Kentucky. In September, the company established a wholesale trading office in Houston. Pargas has also signed a definite agreement with Sun Gas Liquids of Dallas for the purchase of their retail propane business. This aquisition is expected to increase revenues by nearly $98 million and sales volume by 112 million gallons. Officers said deregulation of the oil industry will lead to some regional price changes. Pargas expects to finance its capital expenditure budget of $12 million in 1981 from earnings and shortterm borrowing. Howard P. Foley Co. DESCRIPTION: A general, industrial, commercial and power line electrical contractor. The company has more than $200 million in contracts at various stages of completion and operates throughout the United States, the West Indies and Canada. 1980 PROFITS PER SHARE: Unknown. DIVIDENDS: Unkown. FOUNDED: 11. TOP EXECUTIVE: E. Kendall Lorenz, chairman; Bancroft T. Foley Jr., president. E.C. Ernst Inc. DESCRIPTION: An electrical construction contracting firm which has been operating under Chapter XI of federal bankruptcy laws since 1978, seeking a voluntary reorganization of debts. 1980 PROFITS PER SHARE: Unkown. DIVIDENDS: None. FOUNDED: 1915. TOP EXECUTIVES: Joseph E. Griffin, chairman and chief executive officer; M.D. Bruggerman, vice president for finance.
Ernst's overriding goal is to emerge successfully from Chapter XI sometime this year and reestablish itself as one of the leaders in electrical contracting; (in 1977, Ernst was fourth in the nation and Foley was second, in annual volume of business).The company has attempted to eliminate its unprofitable operations and has terminated 11 of the 17 Ernst domestic branches and consolidated others. During 1980, Ernst also closed down its foreign operations.As of March 31, 1980, backlog totaled $40.3 million and Ernst expects much of that to be completed this fiscal year. The company recently completed an electrical installation project at the World Bank and also has several other major projects in Washington and in New Orleans. Retailing Giant Food Inc. DESCRIPTION: Regional supermarket chain with 126 food stores (many with pharmacies) and 30 Pants Corrals jeans stores (Amex). 1980 PROFITS PER SHARE (Fiscal year ended Feb. 28, 1981): $3.74. DIVIDENDS: $1.10 per share. FOUNDED: 1936. TOP EXECUTIVES: Israel Cohen, chairman and president; David B. Sykes, senior vice president for finance and secretary; Emanuel Cohen, vice president and treasurer.
During 1980, a company spokesman noted that in spite of the difficult economic climate, Giant sales continues to grow. Apparently, Giant's already large share of the area's supermarked sales (over 30 percent) also continued to expand. Giant sales increased nearly 20 percent. Every fifth year, the company has a 53-week year, which 1980 was. Any comparison of sales and earnings for the current fiscal year should recognize that the 53rd week sales contributed net income in an amount disproportionate to normal earnings from weekly sales. This is because all fixed charges are absorbed during the 52 weeks and the extra week is not burdened with such charges as basic rent, depreciation, etc. The company estimates that this extra week added between 20 and 30 cents of extra earnings. When sales from the extra week are excluded, 1981's sales gain totalled 17 percent over the prior year. During the year, Giant opened six new food-pharmacy units, while one old store was closed. A major reconstuction project was completed on the Queenstown store converting it to a food-pharmacy. Giant plans to open three new stores in 1981. Earlier this month, Giant instituted a new pricing system in its stores in an effort to increase sales volume and keep prices lower, the firm stated. Prices were removed from individual items and marked on the shelves only. Giant also eliminated all returnable soft drink bottles from its stores. The plan has come under considerable criticism from consumer groups in the area. Day Corp. DESCRIPTION: International trading company involved in a wide variety of goods and commodities. Through Kay Jewelers Inc., the firm operates jewelry stores under the names of Kay Jewelers and Kay/DeRoy Jewelers, guild jewelry stores under the name of Black, Starr & Frost and leases jewelry departments in department stores. Based in Alexandria (Amex). 1980 PROFITS PER SHARE: $2.83. DIVIDENDS: $2.68 million (65 cents per share). FOUNDED: 1916. TOP EXECUTIVE: Anthonie C. Van Ekris, chairman.
Overall results for the year were below management's projections. Kay Corp. experienced difficulties in its international trade business. Despite adverse economic conditions, the division did finish out the year with a modest profit. During the year, Kay expanded its commodity brokerage business and developed comptuer models for commodity futures trading. Kay is interested in opening up commodity trading to individual investors by marketing a commodity futures fund. One bright spot was the retail jewelry business which posted the second largest net profit in its history. The company added 50 Kay jewelry stores, five Black, Starr and Frost stores and three leased departments. In 1981, Kay plans to concentrate on improving the productivity of existing operations -- expanding advertising to feature more value items and eliminating less profitable operations. Kay also acquired 100 percent ownership of PVO International Inc., a processor and marketer of edible and industrial oils., and began taking action to restructure its business. Peoples Drug Stores Inc. DESCRIPTION: Regional drug store chain with more than 490 stores operating in 13 central Atlantic and Midwest states and the District of Columbia under the names of People, Haag, Lane, Reed, Dynamic Discount and Health Mart (NYSE, P). 1980 PROFITS PER SHARE (Fiscal year ended Sept. 27, 1980): $2.17. DIVIDENDS: $1 million (27 cents per share, since raised to 32 cents annually). FOUNDED: 1905. TOP EXECUTIVES: Adrian C. Israel, chairman; Sheldon W. Fantle, president.
The company looks for continued progress in sales and earnings, although officers said that the future of the regional economy might not be as growth-oriented as it has been over the past 10 years. The drug chain positioned itself for possible future acquistions when its shareholders voted to triple the number of shares in the company to 15 million. Peoples' management has expressed interest in acquiring small drug chains in markets adjacent to those already served by Peoples. Last November, Peoples opened its first Home Health Care Center, a facility that offers such health care items as wheelchairs and hospital beds, portable oxygen kits, blood pressure machines and whirlpool baths. Garfinckel, Brooks Brothers, Miller & Rhoads Inc. DESCRIPTION: National retail conglomerate with close to 190 stores in seven chains: Garfinckel, Brooks Brothers, Harzfeld (based in Kansas City), Ann Taylor, Catherine's Stout Shoppes, Miller & Rhoads (Richmond-based) and Miller (Knoxville). (NYSE). 1980 PROFITS PER SHARE: (Fiscal year ended Jan. 31, 1981): $3.33. DIVIDENDS: $1.30 per share since raised to $1.40 per share annually. FOUNDED: 1905. TOP EXECUTIVES: David Waters, chairman; Manuel Rosenburg, president; Robert G. Vandemark, vice chairman.
Garfinckel Corp. posted record earnings for the fourth quarter and the recent fiscal year, a better performance than at most retail giants. For the year, sales rose more than 12 percent to $472 million. Company spokesmen said that income and earnings per share benefitted from a lower effective tax rate. Chairman David Walters said that the strong fourth-quarter results reflected strong sales in November and December. Walters did not that the increased sales were offset by major increases in expenses. Overhead, especially interest costs, reflecting higher rates and a higher level of borrowing for new stores, rose sharply. Looking ahead, Waters expects significant expansion of Brooks Brothers, Garfinckel's, Miller & Rhoads and Catherine's. Waters said that rapidly excalating expenses, higher interest costs and economic uncertainty are the major problems facing his firm down the road, yet he expressed some optimism in these areas, particularly assuming implementation of the new administration's initiatives. Coming to Georgetown soon: a new Garfinckel's store. The specialty store also opened a branch in Annapolis last year. Woodward & Lothrop Inc. DESCRIPTION: Washington's largest local general merchandise retailer, Woodward & Lothrop ranks second to Sears, Roebuck & Co. in nonfood sales in the area with its 15 department stores and warehouse sales center (OTC). 1980 PROFITS PER SHARE (Fiscal year ended Jan. 31, 1981): $3.95. DIVIDENDS: $4.2 million ($1.70 per share). FOUNDED: 1880. TOP EXECUTIVES: Edwin K. Hoffman, chairman; Robert J. Mulligan, vice chairman and chief administrative officer; David P. Mullen, president and chief operating officer.
Last year was not a great one for Woodies or for the department store business in general. The 100-year old chain's 1980 performance was termed "moderately decent" by Chairman Edwin K. Hoffman, who added that things should improve with the company's entrance into the Baltimore market this summer. Construction is in progress on the company's first store in the Baltimore area, a two-level, 150,000 square foot store in White Marsh Mall in northeast Baltimore County. Woodies expect sales of $18 to $20 million from the new store during its first year. Drug fair Inc. DESCRIPTION: Diversified regional drug chain with 176 drug stores (Amex). 1980 PROFITS PER SHARE (Fiscal year ended Jan. 31, 1981): $0.84. DIVIDENDS: 40 cents per share annually. FOUNDED: 1938. TOP EXECUTIVES: Milton Elsberg, president and chief executive officer; Myron D. Gerber, chairman and Chief operating officer.
Drug Fair registered a strong comeback in 1980 with sales up 11 percent and profits listed at $1.4 million compared with $754,000 in 1979. Losses from discontinued operations were cut from $1 million to $189,000 last year. President Milton Elsberg said that earnings were hurt by legal expenses incurred in a suit attacking Drug Fair's profit-sharing plan, by losses from a fire that destroyed the Arlington Towers store and by a 40 percent increase in inventory carrying costs. Drug Fair shareholders will soon vote on a proposed merger proposal by Gray Drug Stores Inc. of Cleveland. Under the proposal, Drug Fair would keep its current name and be operated as a subsidiary. Dart Drug Corp. DESCRIPTION: Regional retail chain with 76 Dart Drug stores, 26 Crown Books units, 17 Trak Auto stores and four new Total Plus healt care products stores in the District of Columbia, Virginia, Maryland, Pennsylvania and Delaware (OTC). 1980 PROFITS PER SHARE (Fiscal year ended Jan. 31, 1981): 83 cents. DIVIDENDS: 13 cents per share annually. FOUNDED: 1954. TOP EXECUTIVE: Herbert Haft, president.
Profits fell sharply in the past year to $1.6 million from $3.5 million the prior year. President Herbert H. Haft explained that the company's earnings were directly hit by expenditures for new store openings and remodeling of existing units along with general economic conditions. But, in the fourth quarter, Dart also closed the four unprofitable stores of its Richmond division and a store in Salisbury, Md. As a consequence, the company sustained net costs of over a quarter million dollard after tax deductions. A total of 44 stores were opened or remodeled last year. Hechinger Co. DESCRIPTION: Hechinger bills itself as "the world's most unusual lumber yards." The company operates a chain of more than two dozen home centers that specialize in do-it-yourself products (OTC). 1980 PROFITS PER SHARE (Fiscal year ended Jan. 31, 1981): $1.55. DIVIDENDS: 12 cents per share. FOUNDED: 1911. TOP EXECUTIVES: John W. Hechinger, president; Richard England, chairman.
Following moves into the Baltimore area and central Pennsylvania, Hechinger continued its aggressive regional expansion with the announcement of plans for two stores in the Richmond area. The firm entered the Philadelphia market and a 60,000-square-foot store opened in Northeast Washington Last year as part of an inner-city mall that Hechinger is developing. The company continued to enjoy the boom in do-it-yourself sales. W. Bell & Co. DESCRIPTION: A Rockville catalogue-showroom retailer of jewelry and fine gifts with 13 showrooms in Washington, Baltimore and Houston (OTC). 1980 PROFITS PER SHARE (Fiscal year ended June 28, 1980): $2.31. DIVIDENDS: 20 percent stock dividend. FOUNDED: 1950. TOP EXECUTIVES: Walter bell, president and chairman; Frederic Bell, senior vice president; Bernard Blum, executive vice president.
Last year was good for Bell although there was a slowdown in retail business early in the year. For the fiscal year ending next June, the company expects reasonable, but not very strong gains. Ourisman Chevrolet Co. DESCRIPTION: Marlow Heights Chevrolet dealership. 1980 PROFITS PER SHARE: Unknown. DIVIDENDS: Uknown. FOUNDED: 1921. TOP EXECUTIVES: Mandell J. Ourisman, chairman, president and chief executive officer; Robert Ourisman, vice president; John Ourisman, vice president and general sales manager.
You always get your way at Ourisman's Chevrolet. Unless, of course, you're asking for financial information. The private, family-held corporation posted annual sales in excess of $68.5 million in 1980. Raleigh Stores Corp. DESCRIPTION: A Washington-based retailer of men's and women's clothing with 11 stores in the metropolitan area. 1980 PROFITS PER SHARE: Unknown. DIVIDENDS: Uknown. FOUNDED: 1911. TOP EXECUTIVES: Sidney Lansburgh Jr., president and chief executive officer; Brainard Janicki, executive vice president.
A bitter, three-week long strike against Raleigh's by members of the United Food and Commercial Workers, Local 400 was settled last May on terms that drew praise from both sides of the dispute. The strike contained many unusual aspects. It was the first time Raleigh's had been struck since its employes organized 40 years ago. Many of the strikes were earning $20,000 a year and more. A company lawyer charged the union with using Raleigh's as "an object lesson . . . in an effort to organize their unorganized stores." The union countered by saying Raleigh's refused to grant any pay raises over the next three years. But the strike took its toll. Raleigh's hired 45 salespeople and threatened to hire more replacements if the strike was not settled at a specific date. Rosenthal Chevrolet DESCRIPTION: One of the largest Chevrolet dealerships in the area, based in Arlington. 1980 PROFITS PER SHARE: Unknown. DIVIDENTS: Unknown. FOUNDED: 1954. TOP EXECUTIVES: Robert M. Rosentha, president; William Lane, vice president.
With 1980 sales exceeding $50 million, management at Rosenthal Chevrolet, a privately held corporation, had little to say about their annual performance other than to note that "it was a vast improvement over last year." A company spokesman indicated that the company feels the retail automobile business will get stronger in the coming months, and said that top executives expect improvement in both the regional and national economy during the coming year. Koons Ford Inc. DESCRIPTION: Largest retail Ford dealership in the world. 1980 PROFITS PER SHARE: Unknown. DIVIDENDS: Unknown. FOUNDED: 1964. TOP EXECUTIVES: James E. Koons, president; Steve Fay, general manager.
Koons, with annual sales estimated at over $35 million for its showcase, Koons Ford of Seven Corners, increased its profits over 1979. Aggressive marketing and advertising as well as management succeeded in expanding its regional market share, according to a company spokesman. The privately held Koons family corporation now has 13 locations, including the newest addition, Koons Ford in Florida, opened last October. Industry sources estimate the total Koons holdings generate more than $120 million in annual revenues. All the Koons family dealerships are operated as independent entities, and three are among the Top 20 in the Washington district. Management at Koons Ford of Seven Corners sees the upcoming year as one of "postive growth." A company spokesman said Koons' sales performance in 1981 will reflect this growth. Schwartz Brothers DESCRIPTION: Wholesale distributor of prerecordered music and accessories. Also operates 24 Harmony Hut retail outlets, from Northern Virginia to Charlottesville (OTC). 1980 PROFITS PER SHARE (Fiscal year ended Jan. 31, 1981): Net loss. DIVIDENDS: Unknown. FOUNDED: 1946. TOP EXECUTIVES: Stuart Schwartz, chairman; James Schwartz, president; Bertram Schwartz, senior vice president.
As overall slump in the record industry was felt by Schwartz as the firm suffered a loss in the third quarter of $63,463 on revenues of $8.34 million. For the year, Schwartz basically broke even. The firm moved into a new 93,000 square foot headquarters and distribution facility in Lanham last year.The new building relaced two smaller buildings in Washington. Services, Research 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). 1980 PROFITS PER SHARE (Fiscal year ended June 30, 1980): 81 cents. FOUNDED: 1954 in Los Angeles; moved to D.C. in 1977. TOP EXECUTIVES: Robert W. Sarnoff, chairman; John M. Toups, president and chief executive.
PRC had to take action in the second quarter of the current fiscal year to remove the burden of certain unprofitable operations. As a result the company suffered a loss of $1.25 million in the three months ended Dec. 31, mostly from a computer systems and service bureau operation in Britain, which is being closed, and for curtailing property appraisal operations. At the same time, PRC reorganized its business into four strategic groups to handle commercial information, government information, architectural and engineering services and systems engineering. Today, PRC officials claim to be in a better position to coordinate future business development with its strategic planning efforts. BDM International Inc. DESCRIPTION: A diversified professional services firm, based in McLean, which specializes in national defense, security, defense communications, energy, transportation and environment issues (OTC). 1980 PROFITS PER SHARE: $1.50. DIVIDENDS: 12 cents per share in 1980, since raised to 15 cents per share for 1981. FOUNDED: 1959, in El Paso, Tex.; moved here in 1973. TOP EXECUTIVE: Earle C. Williams, president and chief executive.
BCM achieved record revenues, net income and earnings per share last year.Most of the company's revenue, in excess of 88 percent, was reported to be from Department of Defense contracts over the past three years. The company is confident that the market will continue to grow if hefty defense spending increases become a realtiy. BDM has developed other markets including foreign military and commercial markets, which should account for a growing share of overall volume.The company's recent dividend boost was the fourth consecutive payout increase since 1977. BDM is challenging a government decision to award a $9 million contract previously held by the McLean firm at facilities in California to a small company that other government investigators now are probing for alleged conflicts of interest. BDM would like to retain the work. 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). 1980 PROFITS PER SHARE: $1.36. DIVIDENDS: None. FOUNDED: 1949. TOP EXECUTIVE: Coleman Raphael, chairman and chief executive officer, William H. Borten, President and chief operating officer.
Atlantic Research's posted sales of $80 million, a 40 percent increase from last year, while net income totaled over $2 million, up 25 percent. ARC spent over $5 million on capital equipment and new facilities including construction of a new engineering office building adjacent to its Gainsville, Va., facilities. A major achievement of the year was winning the Army's Multiple Launch Rocket System program contact with the Vought Corporation team. The company's responsibility includes manufacturing the propulsion system. ARC expects the program to grow significantly over the next few years and to generate greater revenues than any other existing program. Flow General Inc. DESCRIPTION: Diversified scientific firm engaged in research, analysis and manufacturing of biomedical and biological products. (Amex) 1980 PROFITS PER SHARE (Fiscal year ended June 30, 1980): 67 cents. DIVIDENDS: None. FOUNDED: 1961. TOP EXECUTIVES: Thomas C. Bazemore, chairman; Joseph E. Hall, president and chief executive.
In the six months ended Dec. 31, Flow General's sales increased 40 percent and income rose 113 percent from the previous year, representing absolute increases in sales of $13.7 million and in profits of $1.7 million. The recent results include Gelman Instruments, and Italian biomedical products firms acquired in November, for only one month. The figures do not include Amstelstad, a Dutch biomedical products distribution firm acquired in January, or Adaptronics Inc., a McLean products and services firm acquired in February by this expansion-minded firm. Flow is a leader in biology research but also manufactures radio-television equipment and material testing products. Solon Automated Services Inc. DESCRIPTION: The nation's leading supplier of laundry equipment for multifamily housing and a major producer and supplier of commercial clothes dryers for use in multifamily housing, laundromats and other commercial facilities. Solon also owns and operates Sugarbush Valley, ski resort in the Green Mountain National Forest in Vermont (OTC). 1980 PROFITS PER SHARE (Fiscal year ended Sept. 30, 1980): $1.76 diluted. DIVIDENDS: $343,000 (12 cents per share). FOUNDED: 1940. TOP EXECUTIVES: S. Solon Cohen, chairman; M. Roy Cohen, president and chief executive officer.
The company reported record results for last year despite a number of difficult conditions, including higher interests rates, lack of natural snowfall at Sugerbush, and an increase in operating costs. The 12 percent increase in earnings was attributed to the progress made in laundry equipment manufacturing and services area. Solon now provides laundry equipment servicing in 30 states. Scope Inc. DESCRIPTION: A diversified electronics and technology company based in Reston, with sudsidiaries in Florida, California and Maryland (OTC). 1980 PROFITS PER SHARE: $2.06. DIVIDENDS: $729,385 (60 cents per share). FOUNDED: 1957. TOP EXECUTIVE: William C. Schaub, chairman and chief executive.
In 1980 Scope's sales rose 8 percent ot $70.8 million while net income increased 9 percent to $2.5 million. Profit margins were lower than expected due to higher interest rates and costs overruns on systems contracts, according to a company spokesman. Despite a new emphasis on cost controls during the year, Scope continued to invest in new product research and development. The company reports earnings will continue to be influenced by high debt cost and new product development costs. American Management Systems Inc. DESCRIPTION: AMS, based in Arlington, develops, installs and operates computer software systems used in the management and administration of business and governmental organizations. It installs systems for operations on its customers' computers, provides operational services using its own computers and also provides management consulting services not necessarily related to the installation or operation of computer services.(OTC) 1980 PROFITS PER SHARE: $1.40. DIVIDENDS: None. FOUNDED: 1970. TOP EXECUTIVES: Ivan Selin, chairman; Charles Rossotti, president; Patrick Gross, executive vice president and secretary; Frank Nicolai, executive vice president and treasurer.
AMS expects growth to exceed the overall growth rate of the industry, which is 20 to 30 percent annually. Last year the company continued to spend on research and development, especially on the packaged application software (computer programs) and computer services, which the firm expects will produce long-term profits at some sacrifice shorter-term profits. Even though AMS has a good balance of public and private-sector business, the company expressed some concer over the federal government's actions on contracting for outside services and employment. The company explained that the growth of computer systems use remains relatively insensitive to moderate fluctuations in national economy for two reasons: The cost of computer equipment doesn't rise as fast as inflation and inflation itself spurs the use of computers to control costs. AMS dropped one customer last year -- the D.C. city government, which is having much-publicized difficulties with a financial management system that AMS helped design. Hazleton Laboratories Corp. DESCRIPTION: A Vienna life-sciences firm that manufacturers products and provides services for institutions dealing with processes or diseases which affect man and his environment (OTC). 1980 PROFITS PER SHARE (Fiscal year ended June 30, 1980): 83 cents. DIVIDENDS: $480,000 (20 cents per share, since raised to 24 cents annually). FOUNDED: 1969. TOP EXECUTIVES: Kirby L. Cramer, chairman and chief executive; Donald P. Nielson, president.
Hazleton's 1980 revenues, net income and earnings per share posted record levels for the ninth year in a row. Revenues increased 17 percent to $43 million, net income rose 26 percent to $2 million and fully diluted earnings per share advanced 11 percent to 83 cents. The company said earnings per share didn't increase at the same rate as net income because of a 13 percent increase in shares outstanding due to a common stock offering.Last year's results were achieved despite the continued problems in the environmental group, which posted operating losses of $1.6 million. The losses ove the year were attributed to the deterioration of the market for environmental studies in the power generation field. Environmental studies in this area are done largely to support new power-plant construction, which has been largely curtailed due to rapidly increased oil prices and record interest rates. While the results in this division were considered disappointing, the performance at all of the other subsidiaries was upbeat. Hazleton spent over $5 million on capital expenditures to expand and improve laboratory and production facilities. Temporaries Inc. DESCRIPTION: Temporary help-services firm based in the District, with national operations in 20 markets specializing in office and medical services. 1980 PROFITS PER SHARE: Unknown. DIVIDENDS: Unknown. FOUNDED: 1969. TOP EXECUTIVE: Barry Wright, president and chief executive officer.
Since its founding in 1969, Temporaries Incorporated has consistently remained an industry leader in both growth and expansion among temporary help-service firms. Next year the privately held company expects revenues in the $38 to $40 million range, and experienced a growth rate of 50 percent in 1980, as it has for the past three years. Management expects a similar showing for 1981. Much of the strength enjoyed by Temporaries comes from its leadership position in the medical and health-related temporary services sector. TI's Hospital Temporaries accounted for nearly 75 percent of last year's revenues. Penril Corp. DESCRIPTION: Rockville-based Penrill produces data communications equipment, electric test and measurement instruments, high-fidelity speakers and electronic power supplies (Amex). 1980 PROFITS PER SHARE (Fiscal year ended July 31, 1980): $1.35. Dividends: $188,745 (15 cents per share). FOUNDED: 1968. TOP EXECUTIVES: Kenneth M. Miller, president and chief executive officer; Apul E. Keane, executive vice-president.
Penril, a company that has shared in the recent growth of the high techonology and data communications industry, enjoyed a seventh straight year of record earnings last year. Although the Penril's business is not strictly tied to the regional economy, company officers said the D.C. area will continue to provide a healthy business climate for financial growth. Underscoring its belief, Penril rcently purchased a neighbor, Syntech Corp. of Rockville, for nearly $1 million. Covington & Burling DESCRIPTION: Washington's largest and most prestigious law firm, for decades. 1980 PROFITS PER SHARE: Unknown. DIVIDENDS: Unknown. FOUNDED: 1919. TOP EXECUTIVES: Senior partners are Daniel M. Gribbon, Michael Boudin, John L. Ellicott, Henry P. Sailer, J. Randolph Wilson and Harry Schnidderman.
Covington and Burling, a firm usually retained by giants of the corporate world, was in the news last year for representing the inmates of Lorton Reformatory prison.In a class action, the inmates claimed the District government failed to provide adequate safety within the maximum-security facility by not providing enough guards. In a decision described as the first of its kind, 400 inmates were awarded $600,000 in damages. Covington specializes in litigation, corporation and administrative cases. STSC Inc. DESCRIPTION: STSC Inc. provides financial management services and remote access computer services and software products based on the APL computer program language. The Bethesda company's services and products are marketed by and supported through 25 offices in the United States and Europe. Its central computers are accessed through a tele-communications network in more than 300 cities worldwide (OTC). 1980 PROFITS PER SHAE (Fiscal year ended May 31, 1980): 86 cents. DIVIDENDS: None. FOUNDED: 1969.
TOP EXECUTIVES: Daniel Dyer, president and chairman of the board; Patrick P. Gehl, executive vice president.
Although STSC officials cautioned that that new administration's attempt to hold down federal spending could slow down the regional economic growth rate, they confidently expect STSC's revenues to exceed the 19 percent annual growth rate projected for the computer services industry. With less than 10 percent of STSC's revenues come from federal government contracts, the company expects a pretax profit margin to remain above 14 percent. Henry J. Kaufmann & Assocaites DESCRIPTION: The oldest and one of the largest public relations and advertising firms in Washington, handling nearly 18 regional and national clients located throughout the U.S., in addition to area business. Kauffman owns an independent subsidiary, Market Research Bureau. 1980 PROFITS PER SHARE: Unknown. DIVIDENDS: Unknown. FOUNDED: 1929. TOP EXECUTIVES: Stuart E. Karu, president and chief executive officer; Micahel G. Carberry, executive vice president.
Over the past two years, HJK&A has doubled its gross business. Last year the firm had gross income of over $3 million, on billings of $21 millsion; in 1979 it had gross income of $2 million on a capitalized volume of $15 million. Some of the new accounts gained include the Environmental Protection Agency, the Federal Trade Commission, WTOP radio and the National Apartment Association. The agency expects continued growth in 1981 with gross volume increasing 20 to 25 percent and profits increasing at a greater rate. It is difficult to measure local ad agency size; HJK&A rival Earle Palmer Brown listed assets the same as HJK&A ($1.8 million), but 1980 billings of $18 million were somewhat lower than HJK&A and a third area ad business leader, Ehrlich-Manes (see below). Brown does have more employes than its rivals (75), but Brown's gross income was lower than the others. Ehrlich/Manes & Assocaites DESCRIPTION: Another of the Washington area's principle advertising agencies, in terms of reported annual billings (Ehrlich_-Manes reported $21 million to The Post for the fiscal year ended Sept. 30, 1980, while Advertising Age listed 1980 billings of $20.9 million, just a few dollars smaller than at rival Kaufman, above).Ehrlich-Manes serves local, regional and national accounts. 1980 PROFITS PER SHARE: Unknown. DIVIDENDS: Unknown. FOUNDED: 1968. TOP EXECUTIVES: Alvin Q. Ehrlich, chairman; Nella C. Manes, president.
Ehrlich-Manes had its best year in its 13-year history having estimated gross income of $3.2 million on volume of $20.9 million in 1980. Some the company's major new accounts include Fokker aircraft, based in the Netherlands, after having served Fokker in North America the preceding year. Makro Self-Service Wholesale Corporation, also based in the Netherlands, selected the firm for the introduction of its first unit in the United States. Also acquired during the year: JKJ automobile dealers, Haag Drug chain in Indiana, the National Utility Contractors, Sesa-Honeywell Communications, and broadcast activities for Raleigh's stores. Hotel, Food Services Marriott Corp. DESCRIPTION: An international company with 82 hotels and 34,000 rooms, Roy Rogers and Big Boy restaurants, dinner houses and cafeterias, in-flight airline catering, two amusement parks and cruise ship operations, as of March 31, 1981.(NYSE,M,P,Phila.) 1980 PROFITS PER SHARE: $2.60 DIVIDENDS: $5.25 million (21 cents per share; currently the rate is 24 cents a share annually). FOUNDED: 1926. TOP EXECUTIVES: J. Willard Marriott, chairman; J.W. Marriott Jr., president and chief executive officer.
Marriott's operating profits rose by 14 percent in 1980. The company bought back nearly a quarter of its common stock (about 13 million shares), which was reflected in a 33 percent increase in earnings per share. Marriott opened 10 hotels, resorts and inns in 1980 and will open 22 new hotels with 10,500 rooms this year. At the end of 1980, the company's hotel group had more than 30,000 rooms in 75 resorts, hotels and franchised inns. Occupancy rates averaged above 80 percent during the year, despite a lower average for industry-wide occupancy rates. Marriotts intends to expand its hotel rooms at the rate of 20 to 25 percent a year during the next five years. "The prospects for Marriott's hotel operations are more promising than at any time since we entered the business 24 years ago," the annual report said. Last year was also a good one for Marriott's Contract Food Services, U.S. In-Flite Division and the Food Services Management Division. Despite the recession, the Restaurant Group turned in a good performance with sales up 12 percent and operating profits up 14 percent. However, after 26 units were sold or closed, overall restaurant profits were only slightly ahead of 1979. Marriott's two Great America theme parks suffered from reduced attendance resulting in a 5 percent decline in profits from 1979. Marriott has no plans for any substantial additional investment in new theme parks and instead will manage parks under contract to others. Manor Care Inc. DESCRIPTION: A nursing center and hotel company in Silver Spring that operates two dozen nursing homes, a 120-bed acute hospital and several alcohol rehabilitation units, more than 300 and franchised Quality Inn hotels in the U.S., Mexico and Canada with some 38,000 rooms. Manor and Quality, both of which had the same principal stockholders, were merged into one firm last year (Amex). 1980 PROFITS PER SHARE: Manor Care (Fiscal year ended May 31, 1980): $2.70; Quality Inns (Fiscal year ended Aug. 31, 1980): $2.06 DIVIDENDS: Manor Care: $1 million (50 cents per share); Quality Inns $1,2 million (48 cents per share). FOUNDED: 1968 TOP EXECUTIVES: Stuart Bainum, chairman; J. Calvin Kaylor, president and chief executive officer.
Manor Care acquired Quality on Dec. 1 and doubled the size of the company. Manor executives, doubting that the proposed government budget cuts will have a significant impact on the firm, are optimistic on their outlook for both the health care and lodging industries. Building, Real Estate Clark Enterprises 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 as well as other construction companies, Clark is privately owned. 1980 PROFITS PER SHARE: Unknown. DIVIDENDS: Unknown. FOUNDED: 1906, as George Hyman Co. TOP EXECUTIVES: A. James Clark, president; Benjamin Rome, chairman. Blake Construction Co DESCRIPTION: One of the area's largest family-owned construction firms, specializing in government work. 1980 PROFITS PER SHARE: Unknown. DIVIDENDS: Unknown. FOUNDED: 1949 TOP EXECUTIVES: Brothers Morton, Stanley and Howard Bender, owners; Stanley Prill, president.
The company has played a key role in a number of local construction projects including the headquarters for the National Association of Home Builders, the George Washington University Library and the James Forrestal Building. The latest estimate of the firm's construction in progress exceeds $1 billion. Rouse Co. DESCRIPTION: A Columbia real estate development and management firm with subsidaries engaged in investment and mortgage banking services, 42 retail shopping centers (OTC). 1980 PROFITS PER SHARE: 29 cents. DIVIDENDS: $5.5 million (40 cents per share since raised to 48 cents annually). FOUNDED: 1939. TOP EXECUTIVES: James Rouse, chairman; Mathias J. Devito, president and chief executive officer; R. Harwood Beville, executive vice president for operations; Michael D. Spear, executive vice president for development.
The successful debut of two projects -- Harborplace in downtown Baltimore and Santa Monica Place -- and the acquisition of 12 shopping centers helped make 1980 a good year for Rouse. Earnings before non-cash charges from operations were up 7 percent from 1979 and all divisions except one turned in record performances. Earnings for James W. Rouse & Co., Inc., the mortgage banking subsidiary, were down more than 50 percent from the previous year, the result of high interest rates. mFive new projects are scheduled to open in 1981, including White Marsh, a retail center with five department stores northeast of Baltimore. The company acquired Staten Island Mall, a major regional retail center in New York City, and Carillon West, a specialty center in Houston. Ten retail centers owned by Aetna Life Insurance Co. were brought under management contract. Earnings for operating properties in Columbia were up substantially over 1979 and record proceeds were realized from land sales, led by office, commercial and industrial activity. "Looking to 1981 and beyond, continued inflation and high interest rates give us cause for concern.We believe, however, that the company is well positioned to deal with these difficulties and to experience continued growth and achievement," president Mathias J. DeVito wrote in the company's annual report to shareholders. Oliver T. Carr Co. DESCRIPTION: One of the largest and oldest development firms in the Washington area. 1980 PROFITS PER SHARE: Unknown. DIVIDENDS: Unknown. FOUNDED: 1925. TOP EXECUTIVES: Oliver T. Carr R., president; Robert Carr, vice president development; Richard Carr, vice president acquisitions; Ronald Goode, Vice president construction.
With roughly $350 million of work in progress, the company's future plans include more geographic and product diversification. One project, for example, is in Baltimore. In the past, Carr's emphasis was on constructing office buildings. Now the firm plans more involvement in retail and residential properties. Seeing continued economic growth in the metropolian area, Carr expects to grow substantially over the next five years, with developments in downtown D.C. and throughout the area. Kettler Brothers DESCRIPTION: A privately owned builder and developer in Maryland, Virginia and D.C., and creator of Montgomery Village at Gaithersburg. 1980 PROFITS PER SHARE: Unknown DIVIDENDS: Unknown. FOUNDED: 1952. TOP EXECUTIVES: Clarence E. Kettler, president; Milton E. Kettler, chairman and vice president. Charles V. Phillips Jr., executive vice president.
Following Kettler's best year ever in 1979, company executives had viewed the outlook for 1980 very cautiously. That caution evaporated somewhat as the firm once again delivered about 525 houses and a company spokesman predicts Kettler will do as wll in 1981, provided the money markets are favorable. "In 1981, we will have opened up in Montgomery Village's Nathans Hill, Picton and Highland Hall (sections). We may have one of two additional openings of subdivisions within Montgomery Village. We continue to have strong sales so far this year," a company spokesman said. Donohoe Construction Co. Inc. DESCRIPTION: General contractor and builder/developer with subsidiaries and services covering the full range of commercial and residential real estate. A private company very closely held. 1980 PROFITS PER SHARE: $3.33. DIVIDENDS: $399,000 (70 cents per share). FOUNDED: 1955. TOP EXECUTIVES: Richard J. Donohoe, president; Clarence F. Donohoe Jr., chairman.
"Our perspective has been and continues to be that this region has incredible and dependable residual strength, both in the direct and indirect prime employment sectors. We hope to be a major force in the reshaping and rejuvenation of the prime downtown business corridor of the District. Our outlook is only that of increasing growth opportunities," a Donohoe spokesman said. B.F. Saul Real Estate Investment Trust DESCRIPTION: The Trust's principal businesses are the ownership and development of income-producing properties and the conversion of apartment projects into condominiums. Owner of 63 income-producing properties with gross investment of $196 million before depreciation. The Trust also owns 21 land parcels carried on the books at $28.1 million, most of which are zoned for commercial and industrial development (NYSE). 1980 PROFITS PER SHARE (Fiscal year ended Sept. 30, 1980): $1.42. DIVIDENDS: $295,000 (20 cents per share). FOUNDED: 1964. TOP EXECUTIVES: B. Francis Saul II, chairman; Michael F. Johnson, real estate vice president, Thomas A. McAvity Jr., financial vice president.
Last year B.F. Saul expanded its condominium conversion program, began construction in Atlanta of a $20 million office tower and a $5 million office and industrial facility. Divident payments were resumed in October due to improved operating results and a brighter outlook for the future. The rebound in profitability from a loss of $2.8 million in 1979 to a profit of $8.4 million was due mostly to a sharp increase in condominium conversion profits, which totaled $15.9 million in 1980 compared to $2.06 million in 1979. The company expects profits from condominium conversions to drop in fiscal 1982 because of a limited number of suitable apartment projects. Although new units are underway, the profit margin on the new projects will be lower than on conversion of projects acquired in the past. "Fortunately, the heavy volume of condominium conversions in which we are now engaged is producing lasting benefits because the Trust is selling units which produced relatively low returns as rental apartments at a large premium over their historical carrying values and using the cash proceeds to reduce high-cost bank debt and provide equity funds for development of new projects," according to the firm's annual report. The success of future commercial and industrial land development centers on two land parcels which the Trust owns in the suburbs of Atlanta and Washington. National Corporation for Housing Partnerships DESCRIPTION: Created by Congress, it is the largest private producer of housing for families of low and moderate income in the nation, operating in 40 stats, the District of Columbia and Puerto Rico. Current participation in more than 70,000 units in over 500 projects. DIVIDENDS: None. FOUNDED: 1970. TOP EXECUTIVES: George W. DeFranceaux, chairman; George M. Brady Jr., president and chief executive officer.
NCHP posted its best record ever in 1980 with the start of more than 10,000 rental and sale units. In the multifamily rental field, almost 75 percent of its production was in rehabilitation, compared with 33 percent in 1979. Despite the clouded outlook for financing, NCHP anticipates another good production year primarily because of projects in the pipeline. Virginia Companies CSX Corp. DESCRIPTION: CSX Corp. is the new Richmond company created Nov. 1, 1980, by merger of the Chessie System Inc., and Seaboard Coast Line Industries Inc. Railroads include Chesapeake & Ohio, Baltimore & Ohio, Western Maryland, Louisville & Nashville and Seaboard. The firm also owns the Greenbrier resort in West Virginia and newspapers in Florida, as well as extensive mineral lands (NYSE). 1980 PROFITS PER SHARE: $7.13. DIVIDENDS: $86.9 million ($2.19 pershare, now at a rate of $2.56 annually). FOUNDED: 1980. TOP EXECUTIVES: Prime F. Osborn III, chairman; Hays T. Watkins, president.
The merger resulting in SCX Corp., along with landmark railroad deregulation legislation (Staggers Act) and the beginning of a long-term steam coal export boom, combined to yield an excellent year for the company. Earnings for 1980 were $281.6 million, or $7.13 a share, after one-time, merger-related accounting adjustments which reduced 1980 earnings by 52 cents a share, or $20.4 million. In 1979, the two companies earned a combined $237.1 million. Revenues of $4.84 billion last year, compared to $4.84 billion in 1979, and assets of more than $7.5 billion, characterized the largest rail system in the country. Coal exports climbed nearly 70 percent in 1980, and CSX was the domestic leader in this arena. Overcrowding of the ports at Baltimore and Hampton Roads constricted somewhat the volume of coal delivered by CSX to these facilities, but new additional port facilities should be completed by late 1982. These new facilities will enable CSX to further expand shipping and exporting activities. Although the two major rail units, Chessie System and The Family Lines, are linked on the corporate level, they will continue to be run separately from Cleveland and Jacksonville, respectively. Virginia Electric & Power Co. DESCRIPTION: A Richmond public utility engaged in the generation, purchase, transmission, distribution and sale of electric energy in a 32,000 mile service area in Virginia (including most of the Washington suburbs south of the Potomac), northeastern North Carolina and a small portion of West Virginia.(NYSE). 1980 PROFITS PER SHARE: $1.93. DIVIDENDS: $190.3 million ($1.40 a share on common). FOUNDED: 1909 (trolley service was an early business line). TOP EXECUTIVES: T. Justin Moore Jr., chairman; William W. Berry, president.
The year 1980 was, top management at Vepco hopes, a trendsetter for the rest of the decade. Earnings per share rose 18.4 percent while the price for 1,000 kilowatt-hours of electic of electric power to Virginia customers dropped by 7.2 percent. Total operating revenues jumped 14.5 percent to $2.11 billion and plans for new generating capacity construction were scaled back by half, reducing construction financing costs by almost $2 billion. Nuclear operations in 1980 accounted for 27 percent of the energy supplied to Vepco customers, compared with 17 percent in 1979. The company predicts nuclear power will produce 41 percent of total generation in 1981. This increased nuclear reliance is expected to reduce total fuel costs this year by 20 percent, or $200 million, despite projected increases in fossil fuel prices. Energy supply from oil declined from 34 percent of the total in 1979 to 19.5 percent last year, and is projected to drop to 10 percent in 1981. The response to Vepco's customer stock purchase plan was strong last year, with about 14,000 individuals, or more than 1 percent of the company's regional customers, providing about $6.3 million in new equity funds through stock purchases. United Virginia Bankshares Inc. DESCRIPTION: A bank holding company with headquarters in Richmond. Its subsidiary, United Virginia Bank, is Virginia's largest with 161 offices in 58 communities (OTC). 1980 PROFITS PER SHARE: $5.27. DIVIDENDS: $8.63 million ($1.60 a share, since raised to $2 a share annually). FOUNDED: 1962, in a merger of several institutions (some dating to the 1800s. TOP EXECUTIVES: Douglas H. Ludeman, president; Joseph A. Jennings, chairman and brief executive officer.
United Virginia continued to improve its earnings during the past year, with income before securities transactions up 15 percent a share to $6.35. This amounted to $34.2 million and provided a return on stockholders' equity of 17 percent. Return on average assets of $3.3 billion reached 1.04 percent. Solid growth in most operating areas produced the favorable 1980 results. Loans increased 13 percent on average, which resulted in an 11 percent increase in net interest income. Other operating income rose 18 percent, and non-interest operating expenses were limited to an 11 percent rise. Non-performing assets were reduced 15 percent to $29 million at year-end 1980, and dropped still further in January, 1981, when Iranian loans totaling $4.1 million were paid in full. Reynolds Metals Co. DESCRIPTION: A major worldwide, vertically integrated producer of primary aluminum and fabricated aluminum products. The company ranks second in the U.S. and third in the world in primary aluminum production capacity (NYSE). 1980 PRODITS PER SHARE: $9.32. DIVIDENDS: $44.2 million ($2.20 a share, since raised to $2.40 annually).
FOUNDED: 1928. TOP EXECUTIVES: David P. Reynolds, chairman and chief executive officer; John E. Blomquist, president an chief operating officer; William S. Leonhardt, vice chairman and chief financial officer.
Although recession and inflation combined to disrupt the general economy, last year was good for Virginia's largest industrial firm. The company reached new levels of sales and earnings and made progress on various programs designed to improve operations and position the company for future growth. Earnings in 1980 were $180.3 million or $9.32 per share on sales of $3.7 billion. During the past year, a new continuous rolling plant in Arkansas was opened, and a new high-speed rolling mill went into its start-up phase. The two plants will add 300,000 pounds or more a year of aluminum sheet capacity. Construction of a new bauxite-alumina complex in western Austrailia was begun, and can plants in Seattle, Kansas City and Puerto Rico moved through various stages of completion. Total capital expenditures for the year were $271 million. A decline in shipments in the early part of 1981 is foreseen with gradual strengthening as the year progresses. Norfolk & Western Railway Co. DESCRIPTION: A freight-hauling railroad operating in 14 eastern and miswestern states, and one province of Canada. N&W is based in Roanoke, where it owns the Hotel Roanoke across from its headquarters building (NYSE). 1980 PROFITS PER SHARE: $6.98 (fully diluted). DIVIDENDS: $69.3 million ($2.20 per share, since increased to $2.60 a share annually). FOUNDED: 1894. TOP EXECUTIVES: John P. Fishwick, chairman and chief executive officer; Robert B. Claytor, president; Richard F. Dunlap and John R. Turbyfill, Executive vive presidents.
Norfolk and Western Railway Co. expects the coming decade will produce better earnings than the past ten years did. "Our opportunities will be different and more promising," according to a company spokesman. "One bright spot in our future is coal, which, after remaining in the doldrums for most of the '70s has begun to grow dramaticallly." The company's coal export business increased 33 percent in 1980, but it does not expect that rate of growth to continue. Another point of optimism for N&W are the possibilities management foresees in connection with the proposed merger with Southern Railway Co. (See Southern, above). Southern is predominantly a north-south carrier while N&W is mainly east-west, and the merger, according to Fishwick, "represents a classic end-to-end unification, with all the benefits that come from such affiliations." Ethyl Corp. DESCRIPTION: A diversified high technology producer of performance chemicals for the petroleum industry, specialty chemicals, plastics and aluminum products, with developing interests in oil, gas and coal, based in Richmond (NYSE). 1980 PROFITS PER SHARE: $4.39 (fully diluted). DIVIDENDS: $32.2 million ($1.50 per share). FOUNDED: 1887. TOP EXECUTIVES: F. D. Gottwald Jr., chairman and chief executive officer; Bruce C. Gottwald, president; Floyd D. Gottwald, vice chairman and chief financial officer.
For Ethyl Corp., 1980 was a disappointing year in many respects, according to a company spokesman. The combined effects of lingering recession and persistent inflation took their toll throughout the economy. "We have every reason to anticipate renewed long-range earnings growth, suppported by an ambitious capital spending program," the spokesman continued. "We still maintain the goal of at least a 15 percent after-tax return on capital expenditures which should be in the range of $1 billion for property, plant and equipment additions, working capital needs and oil and gas development during the next five years." Ethyl remains committed to raising dividends with increases in earnings. Despite the sluggish economy and the firm's. disappointing results for the year, 1980 capital expenditures set a new record at $156 million. Best Products Co. DESCRIPTION: The largest catalogue showroom merchandiser in the U.S., operating 75 showrooms in 10 states nationwide, from its headquarters in Richmond (NYSE). 1980 PROFITS PER SHARE (Fiscal year ended June 28, 1980): $2.29. DIVIDENDS: $2.1 million (22 cents per share; currently the rate is 24 cents per share annually). FOUNDED: 1957. TOP EXECUTIVES: Sydney Lewis, chairman and chief executive officer; Andrew M. Lewis, president and chief operating officer; Francis A. Lewis, executive vice president.
Despite an 18.6 percent decline in earnings during 1980, from $26,6 million to $21.7 million, cash dividends paid to shareholders by Best increased 37.5 percent over the 1979 figure. Sales reached a record $841.8 million in fiscal 1980, a 20.8 percent increase over the previous year. During the past calendar year, Best opened more than a dozen new showrooms, and experimented with a scaled-down showroom designed for smaller markets.Increased emphasis was placed on telephone and mail order sales systems, with significant results. Due to the volatility of the marketplace, and the difficulties connected with making predictions, company officials declined to publicly forecast ranges for sales and earnings for the next fiscal year, discontinuing a three-year-old tradition. But recent reports have indicated sluggish profitablity. Universal Leaf Tobacco DESCRIPTION: Richmond company that is the world's largest independent leaf tobacco dealer, also involved in the manufacture and marketing of phosphate fertilizers for domestic and export markets (NYSE). 1980 PROFITS PER SHARE (Fiscal year ended June 30, 1980): $3.20. DIVIDENDS: $11.3 million ($1.26 per share). FOUNDED: 1918. TOP EXECUTIVE: Gordon Crenshaw, president and chief executive officer.
A company spokesman declined to comment on Universal's market performance last year. He did say the future outlook is unpredictable because his firm "is a seasonal business and everything depends on the weather and crop growth." " A. H. Robbins DESCRIPTION: A Richmond manufacturer and marketing firm for health care products including ethical pharmaceuticals, over-the-counter drugs and brand-name products (NYSE). 1980 PROFITS PER SHARE: $1.01. DIVIDENDS: $10.6 million (42 cents per share). FOUNDED: 1866. TOP EXECUTIVES: E. Claiborne Robbins Sr., chairman; E. Claiborne Robbins Jr., president and chief executive officer; Robert G. Watts, executive vice president.
Worldwide economic conditions and high domestic inflation caused overall operations for Robbins in 1980 to be somewhat depressed. Despite record sales of $432.3 million, up 12 percent from 1979, earnings declined 43 percent to $25.4 million. Disposal of some marginal operations, at an after-tax loss of $4.6 million, and a change in inventory methods resulting in a one-shot loss of 7 cents a share, also contributed to the decline in earnings.On the bright side, company officials expressed optimism that 1981 would be a good year, "depending on the introduction and success of new products, and the U.S. economy." During 1980, record spending for capital improvements and research and development demonstrated the company's faith in the future. Robins took advantage of expansion opportunities through acquisitions. In West Germany, Kytta-Werk Sauter GmbH was created to acquire the assets and continue the operations of two pharmaceutical plants. In partnerships with a Swiss physician, the firm acquired the Eurand Group of companies located in Milan, Italy. The Eurand Group specializes in time-release drugs, and has plants in Italy, Switzerland, France and Spain. A new $16 million pharmaceutical plant was completed in Richmond, more than doubling the company's packaging and liquid-manufacturing capacity. As of Feb. 16, Robins had purchased 1 million shares of its stock through open market transactions, part of an ongoing repurchase program. Richfood Inc. DESCRIPTION: The largest retailer-owned cooperative full-line grocery wholesaler in the southeast, totally owned by the retailers who buy from the company, which is based in Mechanicsville. 1980 PROFITS PER SHARE: Unknown. DIVIDENDS: Unknown. FOUNDER: 1935. TOP EXECUTIVES: Leonard E. Starr, president; W.C. Taliaferro, executive vice president.
Richfood products are found in well over 700 retail outlets, inlcuding Memco stores in the Washington market.The cooperative experienced another year of substantial growth in 1980, and long-term prospects are described as excellent. The low-key Richfood approach to new markets and clients has served the cooperative well in the past, and top management intends to stick with its proven formula. According to presidnt Starr, "Our best salesman is word of mouth." Maryland Companies T. Rowe Price Associates DESCRIPTION: An employe-owned investment research and counseling firm managing more than $6 billion in private accounts, most of which represents tax-free clients such as corporate, union, and government retirment funds and educational and charitable organizations. The Baltimore firm also manages an additional $5 billion invested in several no-load mutual funds established since 1950, making it one of the largest sponsors of no-load funds. eIt is the largest money manager in the Middle Atlantic states. FOUNDED: 1937. TOP EXECUTIVES: E. Kirkbride Miller, chairman; Curran W. Harvey, president and chief executive officer.
The year 1980 was one of dramatic growth and development for T. Rowe Price in terms of asset gain. The firm managed $7.7 billion in total assets last year, a gain of about $3.5 billion. An independent market analyst said the gain resulted from a number of positive factors, including a $1.6 billion jump in T. Rowe's six mutal funds and another $1.4 billion gain in separately managed accounts. T. Rowe also enjoyed a 32 percent increase in tax-exempt assets. The firm characterizes its equity approach as growth and emerging growth. It also invests about $57 million in international markets, through its affiliate, Rowe Price-Fleming International Inc. U.S. Fidelity & Guranty Co. DESCRIPTION: A leading multiline insurer based in Baltimore, engaged directly and through subsidiaries in the business of writing casualty, fire, marine and allied lines of insurance, and fidelity and surety bonds in the U.S. and Canada (NYSE). 1980 PROFITS PER SHARE: $7.99 per share net; $8.18 per share before realized gains on investments. DIVIDENDS: $75.4 million ($2.80 per share, since raised to $3.20 a share). FOUNDED: 1896. TOP EXECUTIVES: Jack Moseley, chairman and president; Charles H. Foelber, senior executive vice president; Karl H. Doerre, executive vice president.
USF&G posted generally good, but mixed, operating results last year. In a year that experienced the second worst underwriting loss in the industry's history, USF&G produced an underwriting profit. The firm's investment income growth was among the best in the industry. Net premiums written in 1980 increased to $2.04 billion, compared to $1.99 billion the year before. Premiums earned were also up, from $1.96 billion to $2.04 billion. The profit on these underwritings, calculated by generally accepted accounting principles, dropped in 1980 to $104.9 million from $143.7 million. However, net income for 1980 was down just under $6 million, to $233.1 million. Assets increased to $4.24 billion from $3.67 billion the previous year. Maryland National Corp. DESCRIPTION: A Baltimore firm that is the largest commercial banking business in Maryland, providing the traditional range of services of any bank holding company. Maryland National Bank, with its 150 branch offices, is MNC's primary subsidiary (OTC). 1980 PROFITS PER SHARE: $4.28. LOANS: $2.51 billion. DEPOSITS: $2.95 billion. DIVIDENDS: $6.7 million (94 cents per share, since raised to $1 annually). FOUNDED: 1933. TOP EXECUTIVES: Robert D.H. Harvey, chairman; Alan P. Hoblitzell Jr., president and chief executive officer; John M. Nelson III, vice chairman.
Marynat entered the decade of the '80s in a climate of economic crosscurrents including the highest interest rates ever, a domestic recession, increasing regulation and narrowing spreads between interest rates earned and rates paid on savings deposits. Earnings after taxes reached a record $32 million, continuing a pattern of steady earnings growth over the past 20 years. The 23 percent increase in per share earnings resulted in compound annual growth rate of 19 percent in earnings per share over the period from 1976 to 1980 Baltimore Gas & Electric Co. DESCRIPTION: A Baltimore public utility engaged in the generation, purchase and transmission of electrical power and natural gas throughout the central Maryland area (NYSE). 1980 PROFITS PER SHARE: $3.64. DIVIDENDS: $80.7 million ($2.50 per share, now $2.56 per share annually).
FOUNDED: 1906. TOP EXECUTIVES: Bernard C. Trueschler, chairman and chief executive officer; George V. McGowan, president and chief operating officer.
BG&E opened the decade with a strong showing in 1980. Earnings per share of common stock were up 7.1 percent over 1979 and the quarterly dividend on common stock was raised from 61 cents to 64 cents last October. Rate increases of $93.6 million in additional revenues were approved last June, and in December further rate increases of $24.9 million a year won approval of the Maryland public service commission. The firm spent about $225 million for construction and $57.1 million for nuclear fuel in 1980. Electrical projects accounted for $185.8 million of the total amount, and $21.3 million was spent on gas construction. Revenues on electric sales jumped from $714.9 million in 1979 to more than $857.2 last year. Total sales of electricity were up 2.4 percent in 1980. Gas sales showed a similar increase, from $287 million to $345.7 million. Loyola Federal Savings & Loan Association DESCRIPTION: Maryland's largest federally chartered mutual savings and loan association, with 33 offices. 1980 DIVIDENDS ON SAVINGS ACCOUNTS: Unknown. SAVINGS DEPOSITS: $959.2 million. MORTGAGE LOANS: $1.06 billion. FOUNDED: 1879. TOP EXECUTIVES: Joseph W. Mosmiller, chairman; James C. Johnson, president; Marshall W. Moore, senior vice president.
In 1980, there was very strong competition for the savings dollar, a company spokesman said. Volatility of the financial markets, and general economic decline should prevail at least in the first half of 1981, he added. Black & Decker Manufacturing Co. DESCRIPTION: The world's leader in the development, manufacture and marketing of power tools and a successful new products company for other labor and time-saving devices. B&D is based in Towson, north of Baltimore (NYSE). 1980 PROFITS PER SHARE (Fiscal year ended Sept. 28, 1980): $2.14 per share. DIVIDENDS: $31.1 million (74 cents per share, since raised to 76 cents a share). FOUNDED: 1910. TOP EXECUTIVES: Francis P. Lucier, chairman and chief executive officer; John C. Brooman, president and chief operating officer.
A strong showing in the first half of 1980 (sales up 29 percent), coupled with weaker performance during the last half of the year (sales up 10 percent), resulted in a 5 percent decline in earnings for B&D last year. Sales in 1980 were $1.4 billion, a 19 percent increase over the previous year. The company continues to be in a very strong financial position. For 1981, the company expects that capital expenditures will continue at a high level to improve productivity, but that working capital needs will be modest as sales strengthen during the year and inventories levels are held at present levels. Black & Decker continued to invest heavily in manufacturing facilities during 1980. Capital expenditures equalled $110 million, most of which went to new machinery and equipment needed to expand capacity and reduce production costs. Crown Central Petroleum Co. DESCRIPTION: A Baltimore-based, independent producer, refiner and marketer of petroleum products which owns a 100,000 barrel-a-day refinery in Pasadena, Tex. (AMEX). 1980 PROFITS PER SHARE: $2.82. DIVIDENDS: 80 cents a share. FOUNDED: 1923. TOP EXECUTIVES: Henry A. Rosenberg Jr., chairman and chief executive officer; George W. Jandacek, president and chief operating officer.
Earnings last year were $19.1 million compared with earnings of $71.6 million in 1979. This precipitous drop was caused by low profits margins, the result of declining product demand and high inventories nationally. Higher than average crude costs also contributed to Crown's earnings plunge. New record highs in total revenues ($1.27 bilion, up 20 percent), and capital expenditures ($42.4 million, up 21 percent), pushed Crown to its second best year in history. Maryland Cup Corp. DESCRIPTION: The nation's largest manufacturer of single-use paper and plastic products for food and beverage service, based on Owings Mills (NYSE). 1980 PROFITS PER SHARE (Fiscal year ended Sept. 30, 1980): $3.89 per share primary; $3.67 fully diluted. DIVIDENDS: 64 cents per share; the current annual rate is 76 cents per share. FOUNDED: 1910. TOP EXECUTIVES: Merrill L. Bank, chairman and chief executive officer; Samuel N. Shapiro, president and chief operating officer.
Sales rose 18 percent in the recent year, with all segments of the firm contributing to sales growth. Dairy and food packaging operations posted the biggest gains. McCormick & Co. DESCRIPTION: A Diversified, specialized food company based in Hunt Valley and a leading manufacturer and marketer of seasoning and flavoring products to the food industry in 83 countries worldwide (OTC). 1980 PROFITS PER SHARE (Fiscal year ended Nov. 30, 1980): $1.31. DIVIDENDS: $6.3 million (56 cents per share, since increased to 60 cents per share). FOUNDED: 1925. TOP EXECUTIVES: Harry K. Wells, chairman; Hillsman V. Wilson, president; E. Clayton Shelhoss, executive vice president.
Although sales rose 20 percent to $548 million, profits for the recent year declined to $14.8 million from $19.4 million in 1979, a decrease of 24 percent and the first time since 1969 that there was not an increase in year-to-year earnings. Much of the decrease can be attributed to the extremely high costs incurred resisting an attempted takeover by Sandoz Ltd., a Swiss pharmaceutical firm. High interest rates, high costs and a shift to the LIFO (last-in, first-out) inventory method contributed to the decline. The return on assets for 1980 was 10.3 percent, well below the company's oftstated objective of 15 percent, and the return on equity was 10.9 percent. Capital expenditures in 1980 were $25 million. Late in 1980 and early this year, McCormick negotiated two acquisitions in line with longrange growth plans. The purchase of Setco Inc., a specialized manufacturer of injection blow-molded plastic bottles, should add strength to existing packaging capabilities. The acquisition of Stange Co., should assist McCormick as it moves into the supplying of flavorings and spices to industrial food manufacturers. Allegheny Beverage Corp. DESCRIPTION: A diversified manufacturer of specialty foods, primarily as a franchised Pepsi-Cola bottler, and one of the nation's largest vending services companies, based in Baltimore (OTC). 1980 PROFITS PER SHARE: $1.38 fully diluted. DIVIDENDS: 40 cents per share. FOUNDED: 1960. TOP EXECUTIVES: Morton P. Lapides, chairman and president; Edward A. Weisman, executive vice president.
The major development for Allegheny Beverage in 1980 was the takeover fight for the Macke Co., a Washington vending firm, which was completed with a formal merger early in 1981. Prior to the acquisition, Allegheny had bought 35 percent of Macke's stock. Revenues for the year were approximately $424.5 million for the combined operations. Company officials look forward to estimated revenues of over $450 million in 1981. These sales will be generated by the company's six businesses: production and distribution of soft drinks, vending food services, building maintenance and services, coin-operated laundries, manufacture and reconditioning of bottling equipment, and Desks & Furnishings, a furniture showroom chain.