Forbes Ranks Reebok as Most Profitable Firm in U.S.

Athletic apparel manufacturer Reebok International has remained atop the rankings of the most profitable companies in the United States, Forbes magazine said Monday.

Reebok, known for its popular leather athletic footwear, had a more than 200% average return on equity during the last four years, with a 27.7% return over the past 12 months, according to Forbes, which compiled its annual listing of the nation’s most profitable firms.

The business magazine tallied firms’ return on equity--the measure of how much a corporation earns on its shareholders’ investments--over the last three to five years. Forbes listed 1,116 companies in its rankings, which are being published in the magazine’s Jan. 9 issue.

Right behind Canton, Mass.-based Reebok was Delta Woodside Industries, a Greenville, S.C.-based fabric and apparel maker, with a more than 200% return on equity over the past three years, and a 37.8% return in the last year.

Third on the list was CenTrust Savings Bank, a Miami-based savings and loan company, with a 150.6% return over four years and a 6.7% return in the most recent 12 months.

N.H. Utility Ranks Last

No. 4 was Anchor Glass Container, of Tampa, Fla., which had a 133.2% return over the last four years and 5.1% in the past 12 months.

In fifth place was Jepson Corp., a consumer and industrial products company, with a 94.4% return over three years and a 19.3% return in the last 12 months.

The least profitable firm was Public Service of New Hampshire, which had a 0.2% return in the past five years, with a loss in the most recent year. Forbes also listed 175 companies that had losses for their five-year average returns, or for which three- to five-year figures were not available.

Because the rankings consider a company’s aggregate performance over several years, some of the companies with recent profit declines or losses may still rank high on the list.

Rounding out the top 10 profitable companies were: Microsoft Corp., of Redmond, Wash., with a 73.9% return over five years and a 43.2% return in the last year; Western Savings & Loan, based in Phoenix, with a 69.6% five-year return and a 1.3% return for the most recent 12 months; Pilgrim’s Pride Corp., of Pittsburg, Tex., with a 68.4% return over four years and a loss in the most recent year; Best Buy Co. of Bloomington, Minn., with a 60.2% return over five years and a 3.1% return in the last 12 months, and Chrysler Corp., with a 59.4% return over four years and a 14.8% return for the past year.

As part of its survey, Forbes also named the companies it believes are set to make the biggest comebacks, with General Motors Corp. among the candidates.

Forbes noted that GM has reduced its costs and said the auto maker’s loss of market share seems to be leveling off.

Turnaround for Mattel

Turner Broadcasting System Inc. also was named as a comeback candidate. Although the company is still showing losses, it has cut its shortfall by a third, Forbes said.

Another company that has turned around is Hawthorne-based toy maker Mattel Inc., which has managed a strong earnings increase although its sales were down during the first nine months of the year, Forbes said.

Among other firms recovering from declines are steelmaker USX Corp., retailer Gap Inc., Mellon Bank Corp. and GTE Corp., the telecommunications company, Forbes said.