MercoPress. South Atlantic News Agency

Energy firms rank at the top

Skyrocketing energy prices propelled Exxon Mobil Corp. to the top of the 2006 Fortune 500 list, and consigned Wal-Mart Stores Inc. to the No. 2 spot on the magazine's annual ranking of the United States' largest publicly traded companies.

Fortune compiled its list based on companies' 2005 revenues. Exxon Mobil raked in US$340 billion in revenue, a 25.5 percent increase over 2004, and had US$36.1 billion in profits, the most by any US company in history.

Exxon Mobil last appeared at No. 1 in 2001. Only Wal-Mart, Exxon Mobil and General Motors Corp. have topped the list since its inception in 1954.

Wal-Mart had US$315.654 billion in revenue, a 9.5 percent increase from last year. Because of its pervasive US presence, the world's largest retailer has struggled to sustain profit growth in the high teens as it had in previous years.

Other oil producers also rose in the rankings, boosted by crude prices that topped US$70 a barrel and gasoline prices that surpassed US$3 a gallon after hurricanes battered the Gulf Coast.

Both Chevron Texaco Corp. and Conoco Phillips saw their revenues jump in 2005, increasing by 28 percent and 37 percent, respectively. Chevron climbed two spots to No. 4, while Conoco edged up to No. 6 from No. 7 last year.

The major US automakers showed their vulnerability as they faced declining US sales and increasing benefit costs.

GM barely retained its hold on the No. 3 spot, while Ford Motor Co. slipped to fifth place from No. 4. GM's revenues decreased nearly one-half percent to US$192.604 billion, while Ford's rose less than three percent to US$177.21 billion.

General Electric slipped two rungs to No. 7, while its revenue rose 3.1 percent to US$157.153 billion. Citigroup and American International Group followed at Nos. 8 and 9, holding their places from 2005.

International Business Machines Corp. held onto the last spot in the top 10, although its revenues fell by 5.4 percent to US$91.134 billion.

In general, 2005 treated the top US companies to big revenues and profits. The 500 brought in a combined US$9.1 trillion in revenue, a 10.2 percent increase over last year, and US$610 billion in profits, record numbers on both accounts.

Low long-term interest rates, which spurred consumer spending, and a growing global economy helped the companies to hit those records. The global economy grew by 4.25 percent, led by China, India and a recovering Japan.

??We really are a one world economy,'' said Cait Murphy, assistant managing editor at Fortune. ??If the global economic growth is strong, then the 500 will do well, because they have substantial operations and sales abroad.''

Only three of the 47 industry groups that the magazine tracks lost money last year: the airline, motor vehicles and building materials industries.

The seven airline companies on the list lost a total of US$28.4 billion last year. Only Southwest Airlines Co. was profitable. Ten of the 16 motor vehicle companies were profitable, but big losses from GM and Delphi Corp. weighed down the sector. Pipelines, Internet services and retailing, petroleum refining and mining-crude oil production were the fastest-growing industries of 2005.

Internet services and retailing companies turned in a 125.9 percent increase in profits, prompting the magazine to create a new industry category. The most notable newcomers to the 500 fell into that category, with Google Inc. debuting at No. 353, Yahoo! Inc. at No. 412 and eBay Inc. at No. 458. The three combined for US$5.7 billion in profits.