Massey Retiring From BioVeris
BioVeris, a Gaithersburg biotech firm, said Richard J. Massey is retiring as president and chief operating officer after 22 years at the company and its predecessor, Igen International. Samuel J. Wohlstadter, the company's chief executive, will take over Massey's roles. To honor Massey, BioVeris said it will name the firm's research and development facility after him.
General Dynamics Profit Up 15 Percent
General Dynamics reported a 15 percent increase in its second-quarter profit and raised its profit forecast for the year, despite problems with a submarine contract that hurt results.
The Falls Church aerospace and defense firm said it earned $345 million ($1.72 a share), up from $300 million ($1.51) in the corresponding quarter last year. Revenue rose 12.1 percent, to $5.2 billion.
General Dynamics said revenue in its information systems and technology unit increased 22.7 percent, to $2.01 billion. The aerospace unit, which sells Gulfstream business jets, reported a 7.4 percent increase in revenue, to $828 million, and a 33 percent increase in operating earnings, to $125 million.
The company's shipbuilding business continued to be troublesome, reporting flat revenue and a 19.8 percent drop in operating earnings. The unit has struggled with a commercial oil tanker contract and this quarter reported a $16 million charge on a military submarine program.
General Dynamics shares rose $4.68 in New York Stock Exchange trading to close at $115.25, the highest level in at least a year.
Increased Loan Volume Aids Capital One
Capital One Financial said increased loan volume and fewer write-offs on bad loans helped fuel a 30 percent increase in second-quarter profit. The McLean credit card lender said it earned $531.1 million ($2.03 a share), up from $407.4 million ($1.65). Revenue for the quarter ended June 30 rose 16 percent, to $2.45 billion from $2.11 billion.
Capital One also said it expects its acquisition of Hibernia, a Louisiana banking company, to close in September.
Richard D. Fairbank, Capital One's chief executive, said in a conference call with analysts that credit card industry competition is forcing the company to focus on customers who use cards that issue rewards points as a long-term growth strategy.
Rising Hotel Rates Help Host Marriott
Host Marriott, a real estate investment trust, said funds from operations, a common measure of real estate investment trust performance, increased 78 percent in its second quarter, to $130 million (31 cents a share), up from $73 million (21 cents).
The Bethesda-based hotel owner said it earned $91 million (22 cents per share), up from $17 million (2 cents). The company said it benefited from rising room rates and increasing occupancy.
Revenue rose 10.6 percent, to $993 million. Revenue per available room, a measure of hotel sales adjusted for rooms out of service, increased 9.8 percent for the quarter.
Host Marriott shares rose 2.4 percent to close at $18.41.
Orbital Sciences, a space systems manufacturer based in Dulles, said its second-quarter profit fell to $7.6 million (12 cents per share) from $11.1 million (17 cents), largely because the company recorded a higher income tax expense. Orbital said revenue was virtually unchanged, edging down to $177.4 million from $177.7 million.
Separately, Orbital said it believes a federal investigation into the company's government contracting procedures may take up to a year to resolve. Federal agents raided the company's facilities in Dulles and Chandler, Ariz., in May.
Gene Logic of Gaithersburg said its second-quarter loss narrowed to $2.6 million (8 cents a share), from $4.4 million (14 cents). The drug developer said revenue was $20.1 million, up from $18.6 million. Its shares closed up 16.2 percent at $4.58.
LaSalle Hotel Properties, a Bethesda real estate investment trust, said funds from operations, a measure of REIT performance, rose 21 percent, to $20.8 million (68 cents a share) in the second quarter from $17.2 million (63 cents). The hotel owner said that after dividends, net income rose to $10.3 million (34 cents a share) from $7.1 million (26 cents). Revenue was $90.6 million, up from $69.4 million. Revenue per available room, a measure of hotel sales, increased 11.7 percent.
CoStar Group, a Bethesda-based real estate research firm, said its second-quarter profit fell to $1.1 million (6 cents a share) from $1.7 million (9 cents). Revenue rose 19.7 percent, to $32.9 million.
Online Resources, a Chantilly provider of Internet banking services, reported second-quarter earnings of $1.8 million (7 cents a share), up from $1.2 million (6 cents). Revenue rose 41.6 percent, to $14.3 million.
Compiled from staff and news service reports.