Emerges world’s most profitable company – Forbes ranking

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Emerges world's most profitable company ? Forbes ranking

Worried about the global economy? It's easy to see why. Europe shovels stimulus and America grapples for growth. Asia, long a bright spot, is dimming. Apple alone accounts for much of the S&P's boom. Yet the world's largest companies still thrive, with double-digit growth in sales and earnings last year.

In total, the Global 2000 companies now account for $36 trillion in revenues (up 12 per cent), $2.64 trillion in profits (up 11 per cent), $149 trillion in assets (up 8 per cent) and $37 trillion in market value (down 0.5 per cent). These firms also employ 83 million people worldwide. All metrics, except for the firms' values, are up from a year ago due to slumping international markets dragging down their aggregate growth.

Forbes annual ranking of the world's biggest companies departs from lop-sided lists based on a single metric like sales. Instead the system of an equal weighting of sales, profits, assets and market value to rank companies according to their size has been adopted.

This year's list again reveals the dynamism of global business. The rankings span 66 countries, adding four countries this year. The US (524

members) and Japan (258 members) still dominate the list, but with a combined 14 fewer entries. Mainland China is closing the gap on the two leaders and sits as the third largest country in terms of membership with 15 more members this year. Other countries adding to their total this year are South Korea (68 firms), India (61) and the UK (93). Countries standing out in terms of growth across all four metrics are Thailand, the Philippines, Saudi Arabia and the UAE.

In Forbes ninth annual ranking, Exxon Mobil, the world's most profitable company this year, takes the No.1 spot as the biggest Global 2000 company for the first time. JPMorgan Chase, last year's biggest company, takes a back seat to Exxon this year, followed by GE, the Netherlands' Royal Dutch Shell and Chinese bank ICBC.

An analysis of the Global 2000 shows that despite the turmoil in the financial sector, banks and diversified financials still dominate the list, with a combined 478 companies in the 2000 line-up, thanks in large measure to their asset totals. The oil and gas industry, with 131 compa-

nies, scores high in sales and profits,

yet these sectors were not the leaders

in growth over the past year.

Materials, led by metals and min-

ing companies, led all sectors in sales

(up 41 per cent). Big profit growth for

automakers propelled the consumer

durables industry to lead all others in

profit growth (up 95 per cent). Asset

growth of Asia's heavy equipment

firms account for the capital goods

industry lead in asset growth (up 25

per cent). Investors rushed into res-

taurant stocks as the consumer re-

covery took shape in 2011 to lead all

sectors in market value growth (up 24

per cent).

The list has been broken down into

four regions this year: Asia-Pacific

(733 total members), followed by Eu-

rope, Middle East and Africa-EMEA

(605), the US (524) and the Americas

(145). Only the US grew across all

four metrics from a year ago.

Asia-Pacific, the biggest region in

terms of members, led in sales growth

(up 26 per cent), profit growth (up 29

per cent) and asset growth (up 19 per

cent). The US was the only region to

show a gain in market value from a

year ago with 6 per cent growth to an

aggregate value of $13 trillion, top-

ping among all regions.

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72 MOTORINDIA l June 2012

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