Once again, Walmart (WMT) topped ExxonMobil (XOM) to lead the Fortune 500 2014 list, while tech giant Apple (AAPL) moved up one spot to number 5.
Here are the top 10 companies in the Fortune 500list for 2014:
The retail giant held on to the
top spot on the Fortune 500, edging out Exxon Mobil for the second year
in a row. For fiscal year 2014, Wal-Mart’s net sales totaled $473.1
billion, up 1.6% from the year-earlier period. While its sales grew
domestically, Wal-Mart said the expiration of a payroll tax cut,
reductions in the U.S. food stamp program, and poor winter weather hurt
its results. But in the U.S., Wal-Mart is bullish about its plans to
open even more small stores, which compete with drugstores and small
grocery stores.
In 2013, Exxon Mobil’s total revenue dropped 8.8% to $438.26
billion, and net income fell an even steeper 27%. Oil production took a
tumble in 2013, all while capital and exploration expenditures
increased. While Exxon has said it plans to start production at a record
10 major projects this year, capital spending is expected to decline
6.4% from 2012. Deepwater projects in the Gulf of Mexico and a liquefied
natural gas project in Papua New Guinea are among the ventures
scheduled for this year.
Chevron, the U.S.’s second-largest oil company after Exxon Mobil,
posted a 5.4% decrease in total revenue in 2013, to $228.9 billion.
Chevron Chief Executive John Watson said results were hurt by lower
global crude oil prices and refining margins, as well as fewer asset
sale gains and higher expenses. The company expects production will
increase in 2015 and beyond. Chevron says it has also made progress with
its projects in Australia and the Gulf of Mexico.
Berkshire Hathaway’s per-share book value climbed 18.2% in 2013,
but it underperformed the Standard & Poor’s 500 index, which grew by
more than 32% with dividends. The company traditionally outperforms the
S&P when the index falls or moderately rises, but falls short in
years when the market is strong. Berkshire kicked off 2013 with a
big-name acquisition, joining 3G Capital to pay $23 billion to acquire
H.J. Heinz. The earnings boost from that deal, which closed in June, is
expected to be substantial in 2014, according to Chief Executive Warren
Buffett.
Apple’s net sales keep climbing, as the tech giant continues to
sell more iPhones and digital content. But the company faces pressure in
the smartphone business, as Android phones grow increasingly dominant.
Meanwhile, Apple reported an annual drop in net income in fiscal year
2013, a first in more than a decade. Activist investor Carl Icahn last
year disclosed a stake in Apple and subsequently pushed for the company
to spend billions on share buybacks. In April, the company increased the
amount of shares it is authorized to repurchase and raised its
quarterly dividend by 8%, and in late May it announced it was acquiring
Beats Music and Beats Electronics for $3 billion.
The refining company reported a 4% dip in revenue in 2013 — the
first full-year results since it separated from the exploration division
of ConocoPhillips in 2012. Results were hurt by lower average prices
for crude oil and petroleum products. Phillips 66 is planning to spend
about 40% more on capital expenditures in 2014 compared to the prior
year, as the company invests in its midstream and chemicals segments to
capitalize on North America’s energy renaissance.
GM’s troubles with its dangerously defective vehicles don’t appear
to have hurt sales — at least not yet. In April, the automaker’s U.S.
sales rose 7% from a year ago as CEO Mary Barra explained to Congress
how GM would handle recalls of millions of its vehicles. This follows
higher vehicle sales in 2013 across many key markets, including the
U.S., South America and the Asia/Pacific. The company expects to spend
$1.7 billion to cover the cost of its record-setting number of recalls
so far in 2014.
Ford has benefitted from a stronger economic recovery in the U.S.,
as many drivers look to replace their aging vehicles. Executives also
expect it to be profitable in North America this year, albeit at a lower
level than in 2013. In Europe, where Ford has closed factories and cut
thousands of jobs, the company expects to report a narrower loss in 2014
and achieve profitability the following year. Worldwide, Ford’s 2013
revenue increased 10% from the previous year to $146.9 billion, while
profits climbed 26%.
GE kicked off 2013 with a large asset sale announcement, agreeing
in February to sell its remaining stake in NBCUniversal’s joint venture
with Comcast for $18.1 billion. Proceeds from that sale were used to
accelerate both share buybacks and the conglomerate’s restructuring
plans. In the year ahead, GE is looking to invest. In April, the company
made an offer to to buy French firm Alstom’s power and grid businesses
for nearly $17 billion — a deal that would, if approved, immediately
boost GE’s earnings.
Valero has benefited from increased oil and gas production in
North America, and the company has said domestic gasoline demand and
margins look positive heading into the summer driving season. This comes
after some big changes for the refining giant: Valero completed the
spin off of its retail business, CST Brands, last year. And earlier this
year, the company named its new CEO, Joe Gorder, who was previously the
company’s chief operating officer.
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