Orange County’s 75 largest public companies posted another round of sales and profit gains in 2006, though their surge tempered from the peak of the prior two years.
The companies, a broad mix of technology, healthcare, real estate, apparel and other businesses, saw sales rise 12% to $95.6 billion in last year, according to this year’s Business Journal list.
Net income grew 8% to $3 billion.
The list ranks companies by sales. Figures for most companies are for 2006.
Last year’s gains were healthy but down from the 19% sales and 160% profit growth seen by the county’s largest public companies in 2005.
In 2004, the largest public companies here posted a 15% rise in sales and a 148% jump in net income.
The moderating results aren’t surprising. Starting in 2003, the growing economy and restructuring during the recession early in the decade drove big gains in sales and profits. The public companies turnaround peaked in 2004 and 2005.
The housing slowdown, which started in earnest last year, also played a part, holding back or zapping growth at several companies on the list.
The profit growth slowdown follows a national trend. In the fourth quarter, U.S. corporate profits fell 0.3% from the third quarter, prompting some economists to call an end to the big profit rally of the past few years.
Slower economic growth and rising costs are factors.
For more on this story, see the April 9 edition of the Business Journal.
