6: PHH GROUP INC. 11333 McCormick Rd. Hunt Valley, Md. 21031
REVENUE: $538.4 million PROFITS: $36.4 million EARNINGS PER SHARE: $2.30 DIVIDEND: 84 cents ASSETS: $1.65 billion STOCKHOLDERS' EQUITY: $211.7 million RETURN ON EQUITY: 18 percent EXCHANGE: NYSE EMPLOYES: 3,000 TOP EXECUTIVES: Jerome W. Geckle, chairman and chief executive officer; Robert D. Kunisch, president and chief operating officer FOUNDED: 1946
DESCRIPTION: PHH Group serves international corporations by managing their fleets of cars, helping relocate their employes and flying their executive planes. Since it was founded almost 40 years ago (under the name Peterson, Howell and Heather), PHH has expanded to offer flight-planning information, fuel-purchase management and mortgage finance services.
DEVELOPMENTS: PHH reported a 5 percent hike in profits for the fiscal year ended April 30, 1984, despite a 6 percent slump in revenue. The company blamed the revenue decline in part on a drop in investment income as a result of lower interest rates.
On the up side, PHH posted an 11 percent rise in earnings for the first six months of fiscal 1985, from $17.4 million ($1.10 per share) to $19.3 million ($1.21). Revenue rose nearly 15 percent for the six months ended Oct. 31, to $304 million from $265.2 million in the year-previous period.
PHH said it had its best year ever, as customers purchased more than 87,000 new vehicles worth $860 million. The addition of AT&T Information Systems as a client contributed substantially to this record. Worldwide, the total number of vehicles under management reached 263,000, and the value of vehicles purchased exceeded the $1 billion mark for the first time.
PHH said all its subsidiaries flourished in fiscal 1984, and many attracted new clients. Homequity, PHH's relocation subsidiary, received authorization from clients to provide real estate and moving assistance for 22,000 employes taking new jobs. In the process, PHH sold more than $1.7 billion worth of residential real estate and moved more than 30 million pounds of household goods.
PHH Group announced on Oct. 8, 1984, that it had acquired Transamerica Relocation Service for $50 million in cash and notes. Transamerica, with headquarters in San Francisco, provides services similar to those of Homequity; eventually it is expected to bring in 20 to 25 percent in new business for PHH.
A few days after the Transamerica acquisition was completed, PHH announced it had acquired U.S. Mortgage Corp., based in Westmont, N.J. The mortgage-finance company manages a portfolio of more than $250 million. PHH said in January it is interested in another acquisition in the corporate-services sector but would not specify any firm. 7: NOXELL CORP. P.O. Box 1799 Baltimore, Md. 21203
REVENUE: $349.5 million PROFITS: $28.3 million EARNINGS PER SHARE: $2.85 DIVIDEND: 84 cents ASSETS: $161.5 million STOCKHOLDERS' EQUITY: $128.9 million RETURN ON EQUITY: 21.9 percent EXCHANGE: OTC EMPLOYES: 1,179 TOP EXECUTIVE: George L. Bunting Jr., president and chief executive officer FOUNDED: 1917
DESCRIPTION: Noxell develops, makes and markets a variety of consumer products, including Noxzema skin cream, Cover Girl cosmetics, Caliente Chili and other toiletry and household items.
DEVELOPMENTS: Noxell positioned itself in 1984 for continued growth by completing construction of a new manufacturing plant, and launching a new line of cosmetics in Europe and new lipstick and nail-color lines here. On the food front, it began researching the market for spicy "picante" sauces to complement its line of Mexican food products.
Sales grew 15 percent and profits increased 22 percent for the fiscal year ended Dec. 31, compared with 1983. Sales of Cover Girl cosmetics jumped 23 percent and accounted for 61 percent of the company's revenue, reflecting stepped-up advertising in 1984. Sales of toiletries and specialty foods also increased, while revenue from household products declined. For the first quarter of 1985, net sales were up 9.7 percent and earnings were up 14.6 percent over comparable 1984 figures.
During the year, Noxell completed a new 285,000-square-foot manufacturing facility in Baltimore County for pressed powder products.