New York, April 3, 2006—FORTUNE announced today that Exxon holds the No. 1 spot on the FORTUNE 500, the annual list of America 's largest corporations according to revenue. The company "put up numbers the likes of which corporate America has never seen," says FORTUNE senior writer Ellen McGirt. "Back at No. 1 for the first time since 2001, it gushed almost $340 billion in revenues and $36.1 billion in profits." It made more than any U.S. company in history last year-more than the profits of the next four companies on the FORTUNE 500 combined. Rounding out the top ten on the list are Wal-Mart Stores (No. 2); General Motors (No. 3); Chevron (No. 4); Ford Motor (No. 5); ConocoPhillips (No. 6); General Electric (No. 7); Citigroup (No. 8); American International Group (No. 9); and IBM (No. 10). The list and related stories appear in the April 17 issue of FORTUNE, on newsstands April 10 and at www.fortune.com on April 3.

"This year had all the ingredients for a sputtering economy at best, a significant downturn at worst," says McGirt in her introduction to the list. "In spite of the portents of doom, however, America 's largest corporations sailed through in extraordinary style, setting records for both revenues and profits." The reasons vary from industry to industry, but a few things helped. Long-term interest rates remained relatively low, keeping the housing market afloat and consumer spending strong. And with accounting scandals and stateside terrorist attacks fading from memory, cash and equity-rich businesses did some shopping. Perhaps most important was something that didn't happen: an oil shock, allowing profits for petroleum refiners and mining/crude oil companies to rise 57.8% and 80.8% respectively.

"The biggest story of all," says McGirt, "was the global economy, which grew 4.25%, according to the OECD, led by a strong year in China and India , a credible recovery in Japan , and a few signs of life in Europe . Companies on the FORTUNE 500 tend to have substantial operations and sales overseas. So a good year for the global economy can translate directly to the bottom line. That helps to account for this year's record numbers: FORTUNE 500 companies brought in $9.1 trillion in revenues and $610 billion in profits. The growth extended up and down the list. At No. 500, title insurer LandAmerica Financial Group's $3.9 billion in revenues are $300 million more than last year's tail-ender."

Key FORTUNE 500 findings and stats:

• There are 28 non-public companies on the F500: 17 mutual insurers, 10 private, 1 CO-OP - Private companies (including co-ops) that file a 10K with the SEC. Mutual insurers are included because they file with a government agency.
• There are ten female CEOs in the F500 (1-500) and there are ten female CEOs (501-1000).
• There are six African American CEOs in the F500 (1-500) and one African American CEO in the F1000 (501-1000).
• Of the 74 industry groups in the FORTUNE 1,000, only three-airlines, building materials, and motor vehicles-lost money in 2005.
• Fastest-growing industries in 2005 were Pipelines, Internet Services & Retailing, Securities, Petroleum Refining, and Mining/Crude-Oil Production.
• Most profitable companies in 2005 were Exxon Mobil, Citigroup, Bank of America, General Electric, and Chevron.
• Texas jumped past California and New York to rank as the state with the most FORTUNE 500 companies (56). New York is No. 2 (55), while California is No. 3 (52). Illinois (32) and Ohio (28) follow at No. 4 and No. 5.
• China's growth of nearly 10% last year affected the companies on the list in various ways. Those that provide what China needs but doesn't produce-such as airlines, fertilizer, and chemicals-did well. For companies such as Levi Strauss (No. 484) that created manufacturing bases in China, profits improved-in Levi's case a staggering 413.2%.
• Profits grew 125.9% for Internet services and retailers, and the sector achieved enough critical mass to merit its own category for the first time.
• While the economy grew 3.5% last year, the FORTUNE 500 companies did much better, boosting revenue by 10.2%. But if the 500 is so important and had such a good year, why was the stock market so torpid? "Since 2000, large-cap stocks have responded nimbly to an economic downturn and the technology bust," explains McGirt. "But blue-chips have felt little love from market watchers, many of whom suspect they are overvalued. Instead, investors have focused on small caps and emerging-market stocks for the past several years."
• Overall FORTUNE 500 revenues increased 10.2% to $9.1 trillion
• Revenue from FORTUNE 500 companies as a proportion of GDP has risen from 39% in 1955 to 73% this year.
• Largest companies by market value are Exxon Mobil, General Electric, Microsoft, Citigroup, and Bank of America.
• Corporate giving typically accounts for 5% of U.S. philanthropy and in a year marked with great catastrophes, F500 companies gave about: 17% of total hurricane-related giving; 29% of the tsunami relief; and 58% of the relief for the Pakistani earthquake.
• The Texas-based company Frontier Oil (No. 496) is the only FORTUNE 500 company to rank among the top 20 in total returns for the past one, five, and ten years.

Susan Brown Williams
212-522-0133
susan_williams@timeinc.com

Phil DiIanni
212-522-6282
phil_diianni@timeinc.com

 

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