An Update for Global 5000 Companies

Posting a quick update this morning, we continue to update the database of the largest 5000 companies .. both public and private from around the globe. As the public companies report their annual financials, we update those records. And we try to find estimates for the private companies as well.

To date we have approximately 3475 companies in the database with revenues in excess of $500 million (USD). Of these, approximately 2270 are headquartered in the US.

If anyone has suggestions as to other, large companies that should be included in the list, please post in comments

The S&P 500 and Global 5000 Companies

We have seen a lot of press attention lately to the S&P 500. Of course, it is all related to the health of the economy. Seemingly the line goes, if the S&P 500 is going up, then the market is recovering. I think they (whoever writes all that) are missing a larger picture.

The S&P 500 is US based companies that are traded.
Global 5000 companies are the largest in the world — not just US based, not just publicly traded.

There are obvious changes in the world order – -for example, GM is no longer part of the S&P 500 as they filed bankruptcy. They were replaced by DeVry Institute. That said, marketers and those trying to sell to major accounts need to take off the blinders and understand the world at large a bit more.

Echos of Auto Fallout

Lear Corp. yesterday announced they were filing bankruptcy. They are a top Global500 company with over $13 billion in revenue last year and 85,000 employees. At one point a couple of years ago, their revenue topped $17 billion with 115,000 employees.

So, as we look across this landscape of companies in this sector that have filed or merged, we see GM, Chrysler, Collins & Aikman, Lear, Delphi, Dura, Fedral-Mogul, Metaldyne, Monaco Coach, Plastech Engineered Products, Visteon.

That’s a heavey toll.

Who Are the Largest Global 5000 Companies?

For 2008 the top 10 Global 5000 companies were (in order of revenue)

ExxonMobil
Royal Dutch Shell
Wal-Mart Stores
BP
Chevron
ConocoPhillips
Total SA
Sinopec
ING
Toyota Motors

Revenue for these top 10 grew 15% over the previous year.

A Merger Sign of Economic Times

Sooner or later this economy affects companies who find it will be better to consolidate & merge rather than go it alone. The announcement this week that Watson Wyatt and Towers Perrin will merge is one of those signs.

These two compete as professional management & HR benefit firms. They provide consulting and related services to firms around the globe. Both are about the same size – just over $ 1.5 billion. As companies tighten their belt, they pull back for spending on some of these services. Companies in this space find themselves in a no growth or slight downturn of revenues. Probably a good move to combine and make the overall business more efficient.

Global 5000 Auto Makers Re-Alignment

Here’s another sign of the shuffling that is happening in the auto industry. Tata Motors ($9 billion USD in 2007) introduced both the Jaguar and Land Rover in India this past week, bolstering the high end luxury market offerings there.

They are challenging the German auto makers who have the strongest presence in that market. Tata is aggressive at a time when their financials have been strained. And they are selling into the teeth of these tough economic times.

Tata Motors ranks as the 9th largest firm in India in the Global 5000

IPO’s and the Global Market

The Wall Street Journal today reported that VisaNet in Brazil completed and IPO and raised $4 billion (USD). It was the alrgest IPO of the year. Not on NYSE or London or Hong Kong. Came from Sao Paolo exchange.

This year, the top 3 IPO’s have been from Brazil, China and Qtar.
5 of the top 10 have been from Brazil, China and India.

Just more signs that the world is changing. Business (as well as most parts of life) are global. For marketing and sales folks — must think globally. Broaden your horizon.

China Takes a Global Leap Forward

This past week, Sinopec (China Petroleum & Chemical) NYSE: SNP announced it is acquiring Addax of Switzerland.

It is a significant deal on a number of fronts.

First, Sinopec is the largest listed company in China. It is listed also on NYSE, London and Hong Kong exchanges. And it took this step which is the largest acquisition of a Chinese company outside of the region. Showing China’s coming global reach which will be growing over time.

Secondly for the oil industry at large, a Chinese company stepping into exploration outside the region into the Mideast is big step forward not only onto a more global stage, but further highlights the importance of the region.

It also tells us that demand for energy will continue and Sinopec is taking steps to be the player in Asia for years to come.

Does Geography Matter for Global 5000 ?

In this economic mess, there is a lot of debate about which economy, which country and which industries will lead the way out of the doldrums.

Part of the interest is focused on companies and which ones are truly global and where are the companies located. In a world economy and one that has shrunk with technology and instant, constant information flow …. it matters less and less every day.

Take a company like Chevron (CVX : NYSE). It is headquartered in the US. It is in the top 10 in global revenues. But 2/3 of it’s revenue comes from outside the US. So, when thinking about marketing or selling to companies — it is less about where they say they are located. It is all about where their business comes from and therefore where their needs might be.

Growth in the Fortune 500

Every year when Fortune publishes their list of largest US companies — the Fortune 500 or 1000 — it is always interesting to get a sense of growth in business. Especially these days.

If you wanted to make the F1000 this year, your sales/revenue needed to be $1.729 billion. That honor goes to Career Education. That is 5.6% higher than last year’s #1000 on the list – -Helmerich & Payne. For the previous year, the change was 3.8% for that top spot.

Want to be in the top 500? Last year, that was SCANA at $4.621 billion. This year, it only grew by 0.3%. Legg Mason made it at #500 with revenue of $4.634 billion.