Orange County’s largest public companies were awash in profits and sales in 2005.
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The 75 largest publicly traded companies based in OC saw combined 2005 sales of $104 billion, up 19% from a year ago. Net income grew at an even faster clip, up 160% to $5 billion, according to this week’s Business Journal list.
The list ranks the largest public companies based here by sales for the most recent four quarters, most through Dec. 31. (See related coverage in the Public Companies special report, page 63.)
It’s a second consecutive year of big gains for the largest public companies. Last year’s list showed a 15% rise in sales and a 148% jump in net income.
The top 10 companies saw profits grow 64% to $3 billion last year. Sales jumped 19% to $72 billion.
All of the top 10 companies recorded higher sales than a year earlier. Just two had a profit decline,No. 1 Ingram Micro Inc. and No. 8 Beckman Coulter Inc.
Ingram and Beckman took restructuring charges associated with job cuts and other changes last year.
Santa Ana-based Ingram continued its dominance of the list with a 13% rise in sales to $28.8 billion. That’s more than twice as much as No. 2 Fluor Corp. and a quarter of the list’s total revenue.
Ingram is the world’s biggest distributor of technology gear. A year ago, the company announced plans to cut 550 jobs in North America, with more than half in OC. Ingram’s companywide employment fell 4% to 13,000, with OC workers down 23% to 917.
Ingram’s net income fell 1% to $217 million.
Say goodbye to Aliso Viejo-based Fluor, which notched a 40% jump in revenue to $13.2 billion last year. Fluor is set to move its corporate headquarters to Las Colinas near Dallas this month.
Fluor’s move to Texas is one of several shake-ups hitting the normally stable top ranks of the public companies list.
Last year’s No. 2, Cypress-based PacifiCare Health Systems Inc., was bought in December by Minnetonka, Minn.-based UnitedHealth Group Inc. for $9.2 billion.
And Charlotte, N.C.-based Wachovia Corp. completed its $3.9 billion buy of Irvine-based bank holding company Westcorp Inc. and its auto finance unit WFS Financial Inc. earlier this year. Westcorp ranks No. 16 on the list. WFS is No. 17.
Unlike PacifiCare, we decided to leave Westcorp and WFS on the list since both companies reported results for all of 2005. PacifiCare only reported through the third quarter, its last full period before being bought.
No. 3 First American Corp. recorded a 20% rise in revenue to $8.1 billion and a 39% jump in profits to $485 million. The Santa Ana-based title insurer benefited from strong home sales.
No. 4 Standard Pacific Corp., an Irvine-based homebuilder, posted a 20% rise in sales to $4 billion. Its income grew 40% to $441 million.
And No. 8 New Century Financial Corp. saw a 41% rise in sales to $2.4 billion. The Irvine-based subprime lender’s profit grew 11% to $417 million. New Century jumped four spots on the list on the gains.
No. 5 Western Digital Corp. moved up two spots on a 22% rise in sales to $4 billion. The Lake Forest disk drive maker had a 74% gain in profit to $285 million.
No. 6 Gateway Inc. was a huge contributor to the list’s overall profit gain. The Irvine-based computer maker swung from a $568 million, restructuring-fueled loss in 2004 to a $6.2 million profit last year. Gateway’s sales were up 6% to $3.9 billion.
But the gains didn’t save Wayne Inouye, who left as chief executive earlier this year after failing to grow Gateway’s direct sales to businesses and consumers.
Rick Snyder has taken over on an interim basis and is a candidate for the permanent position.
Moving up two notches was No. 7 Broadcom Corp. The Irvine-based chipmaker saw an 11% rise in sales to $2.7 billion. Its profit soared 88% to $412 million under Chief Executive Scott McGregor, who came on early last year.
A notable mover was No. 11 Quiksilver Inc. The Huntington Beach-based surfwear maker moved up four spots on a 46% rise in sales to $2 billion. Quiksilver grew along with the surfwear market, but also benefited from its buy of France’s Skis Rossignol SA, which boosts its presence in the snow gear market.
Healthcare was represented in the top 10 by Fullerton-based Beckman and No. 10 Allergan Inc. of Irvine.
Beckman, which makes medical diagnostic equipment and supplies, reorganized last year. It cut 350 jobs and changed the way it accounted for leases. The result is lower revenue and profits in the short term.
Beckman’s sales grew 2% to $2.4 billion in 2005. Profit fell 29% to $151 million.
Allergan, known for its Botox wrinkle-reducing drug, recorded a 13% rise in sales to $2.3 billion. Profit rose 7% to $404 million. Look for Allergan to post a sales gain next year following its $3.2 billion buy of Santa Barbara-based Inamed Corp., which makes breast implants, skincare products and obesity treatments.
Employment at the 75 companies was pretty flat locally in the past year at 39,910 jobs. Companywide employment grew 9% to 294,380 workers.
The biggest cut was at Ingram, which lost 23% of its local workers. A handful of mortgage lenders and homebuilders also shed some workers amid signs of slowing.
The sole newcomer on the list was No. 61 Volcom Inc., a Costa Mesa-based designer of hip surf, skate and snow gear.
Volcom became an instant Wall Street darling following its initial public stock offering in June. The company’s shares are up about 30% since the stock sale.
