Quest Diagnostics Inc.
Kenneth W. Freeman, 52
CEO since 1997
Industry:
Health-Care Equipment & Services
Sales:
$4.1 billion
Net Income:
$322 million
Corporate Snapshot:
DGX
Quest Diagnostics (DGX) is evidence that might often makes right. In the late 1990s, the Teterboro (N.J.) company was struggling as pricing in the medical-testing business remained cutthroat. But industry consolidation, including Quest's 1999 acquisition of SmithKline Beecham's clinical-lab business, helped stabilize prices. Cost-cutting from that deal fueled average annual net income growth of 75% for the past three years. And Quest has built up its offering of higher-margin products, such as gene-based testing to monitor how HIV patients respond to drug therapy. That strategy should allow it to improve its already solid margins.
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General Dynamics Corp.
Nicholas D. Chabraja, 60
CEO since 1997
Industry:
Capital Goods
Sales:
$13.8 billion
Net Income:
$1.1 billion
Corporate Snapshot:
GD
General Dynamics (GD) is on the list for the fourth straight year, but the Falls Church (Va.)-based company may be riding the momentum of previous years' performances. Its return to shareholders last year plummeted 33.8%, although the three-year total gain stands at 43.3%. Military sales were strong, partly because of acquisitions, but the commercial aerospace business -- Gulfstream corporate jets -- got hammered. Even so, General Dynamics managed to increase profits by 11%, on a 15% rise in sales. With general aviation revenues expected to be flat this year, investors are worried that GD's growth streak is losing altitude.
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Northrop Grumman Corp.
Kent Kresa, 65
CEO since 1990
Industry:
Capital Goods
Sales:
$17.2 billion
Net Income:
$697 million
Corporate Snapshot:
NOC
As Kresa prepares to hand over the reins to successor Ronald D. Sugar, he leaves behind an impressive legacy. In 1990, the Los Angeles-based company was reeling from procurement scandals and charges of cost overruns at its B-2 Stealth Bomber operation. Kresa pulled Northrop (NOC) out of its tailspin and went on to make a half-dozen major acquisitions. It's now the second-largest defense contractor in the U.S. and one of the best-positioned to benefit from the military's ongoing focus on high-tech weaponry. Indeed, net income soared 52% last year, while sales jumped by a third. Sugar may find it hard to top that.
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Copyright 2003, Bloomberg L.P.
