We're pleased to bring you our 2008 Annual Report on St. Louis-based companies. We want to remind you that all of the material in this special section, plus additional information from our analysis, is available throughout the year on STLtoday.com.

In the past year, our region has begun to feel some of the economic slowdown seen nationally. For the first time in nearly four years, the St. Louis economy saw a net loss of jobs when March employment declined versus the same month in 2007.

St. Louis-based companies, meanwhile, have faced the challenge of covering rising costs of raw materials at a time when customers — individuals and businesses — are being more cautious about spending.

Nationally, the government's producer price index for raw materials, such as corn and crude oil, has risen 34 percent over the past year.

As economy writer Tim Logan explains in our cover story, many companies have responded with steps intended to absorb increased costs while testing customer tolerance for higher prices.

Investors also have been more demanding and, in some instances, their discontent has attracted private equity firms that made plays for local companies. Apparel maker Kellwood Co. was taken over and two companies, Furniture Brands International Inc. and Insituform Technologies Inc., became the subject of proxy fights. On the other hand, St. Louis companies also made notable acquisitions, including Ralcorp Holdings Inc.'s merger with Post cereals and Monsanto Co.'s takeover of cottonseed company Delta & Pine Land Co.

In one of the highest-profile deals of the past year, Wachovia Corp. acquired brokerage A.G. Edwards Inc., a local icon. Wachovia moved its securities division here.

Topping our main ranking of St. Louis-based companies for the second consecutive year is silicon wafer maker MEMC Electronic Materials Inc., thanks to the exploding solar cell market.

And Monsanto, with its soaring stock price, moved to the top of the market cap list. Patriot Coal Corp., a newly created public company spun off from Peabody Energy Corp., and Centrue Financial Corp., which moved from Ottawa, Ill., make their first appearances in our issue. We're also welcoming back Thermadyne Holdings Corp., an established local company that returns to the issue after listing on the Nasdaq last year.

As always, we value your feedback. Please share your comments and suggestions.



Pam Maples

Managing editor

pmaples@post-dispatch.com | 314-340-8181