IW 50 Best Manufacturers -- Gas Hogs

Petroleum producers dominate this year's list of IndustryWeek's 50 Best Manufacturing Companies.

It's not as though you need to be told that petroleum is king. After all, filling your car or truck is testament enough that the big oil companies are enjoying record revenues and profits, thus putting them on the throne, complete with cape and scepter.

But to drive the point home, 15 companies on IndustryWeek's fourth annual list of the 50 best U.S. manufacturers fall under the petroleum and coal products industry.

And of the $1.27 trillion in revenue for all 50 companies on the list, petroleum and coal companies contributed $986 billion -- or 77% of the total revenue. The leader? Exxon Mobil Corp., with 2005 revenues of $363 billion, contributes 28% to total revenues and nearly 40% to the petroleum and coal products revenues.

IW 50 Tables

IW 50 Best U.S. Manufacturers Performance In 2005

33 Industry Leaders
With fears of supply disruption, increased demand in China and India and a spike in crude oil prices, it isn't hard to figure out why petroleum rules.

But for hard numbers, IndustryWeek's list considered financial measures that pertain to operational efficiency and market success. We selected this year's top performers by comparing financial performance during the past three years (2003 to 2005) in revenue growth, return on equity (ROE) and profit margin.

In addition to the market metrics, manufacturing specific metrics were chosen to address the capital/asset intensive nature of manufacturing. These include asset turnover, inventory turnover and return on assets (ROA).

See Also...

IW 50 Best Manufacturers -- Methodology

The 2006 IW 50 Best Manufacturing Companies
The six variables are weighted, with the most recent year contributing 50% of the calculation in each area. The IW 50 is culled from the IW U.S. 500 list, the largest publicly traded manufacturing companies in the United States.

So how did the other industries on the IW 50 perform? In terms of revenue, the chemicals industry -- led by Procter & Gamble Co.'s $56.7 billion 2005 revenues -- contributed $86.7 billion (6.8%) to the total revenue generated by all 50 companies on the list. Following chemicals, computers and other electronics added $61.4 billion (4.8%). Dell Inc. led the pack with $55.9 billion in revenue.

Adding 3.7% of the revenue generated by the top companies was the two beverages companies on the list -- PepsiCo Inc. ($32.6 billion) and Anheuser-Busch Cos. Inc. ($15 billion). In total, there were 16 industries represented on this year's list. With petroleum and coal products dominating, it begs the question, What if petroleum and coal were eliminated from the list?

IW 50 Best U.S. Manufacturers Performance In 2005

IndustryWeek compares financial performance in six categories to determine if companies should be placed on the IW 50 list. Here are this year's results.

US2006 Rank

Primary Industry

Company

Profit Margin

Sales Turns

Inv. Turns

Rev. Growth

ROA

ROE

418 Computer Software Activision Inc.

9.84

1.08

22.70

48.35

14.28

16.61

41 Petroleum & Coal Products Amerada Hess Corp.

5.43

1.20

23.49

35.52

7.61

22.19

361 Computers & Other Electronic Products Amphenol Corp.

11.41

0.94

4.05

18.15

15.79

42.84

64 Beverages Anheuser-Busch Cos. Inc.

12.23

0.91

14.25

0.68

11.37

68.93

404 Publishing & Printing Autodesk Inc.

21.59

1.12

12.78

23.46

28.80

50.75

2 Petroleum & Coal Products Chevron Corp.

7.25

1.55

39.46

27.34

15.13

31.17

380 Leather Products Coach Inc.

22.72

1.27

2.31

29.47

37.78

49.68

85 Chemicals Colgate-Palmolive Co.

11.86

1.34

6.10

7.68

15.58

108.51

135 Primary Metals Commercial Metals Co.

4.33

2.83

8.42

38.26

14.37

43.26

4 Petroleum & Coal Products ConocoPhillips

7.52

1.68

36.13

32.89

14.57

31.67

14 Computers & Other Electronic Products Dell Inc.

6.39

2.42

88.81

13.62

15.39

55.08

395 Machinery Donaldson Co. Inc.

6.93

1.44

7.39

12.77

11.04

20.13

235 Publishing & Printing Electronic Arts Inc.

16.11

0.72

20.44

5.81

14.82

18.82

209 Petroleum & Coal Products EOG Resources Inc.

34.79

0.47

7.23

59.39

21.72

42.76

1 Petroleum & Coal Products Exxon Mobil Corp.

9.95

1.74

19.70

23.91

18.50

35.51

308 Chemicals Georgia Gulf Corp

4.20

2.27

10.73

3.06

9.91

35.60

210 Petroleum & Coal Products Giant Industries Inc.

2.90

3.64

28.43

42.57

14.79

47.99

155 Motor Vehicles Harley-Davidson Inc.

16.91

1.08

15.35

6.64

17.50

29.82

474 Publishing & Printing Harte-Hanks Inc.

10.08

1.28

58.08

10.14

13.82

20.02

279 Furniture & Fixtures HNI Corp.

5.61

2.15

18.53

17.06

13.45

20.54

231 Petroleum & Coal Products Holly Corp.

5.22

2.81

24.39

43.02

17.06

49.32

440 Primary Metals Lone Star Technologies Inc.

17.40

1.31

5.34

32.92

34.58

63.07

12 Petroleum & Coal Products Marathon Oil Corp.

4.79

2.22

15.03

27.47

12.94

37.38

362 Primary Metals Maverick Tube Corp.

9.65

1.44

3.35

22.59

17.19

28.92

148 Publishing & Printing McGraw-Hill Cos. Inc.

14.06

0.94

7.29

14.34

14.40

28.29

381 Primary Metals Metal Management Inc.

5.42

3.55

16.55

57.09

22.70

45.48

82 Petroleum & Coal Products Murphy Oil Corp.

7.13

1.86

28.76

42.07

15.51

31.95

370 Petroleum & Coal Products Newfield Exploration Co.

19.75

0.35

18.05

30.26

8.04

17.25

322 Petroleum & Coal Products Noble Energy Inc.

30.81

0.24

17.19

63.48

18.75

44.23

75 Primary Metals Nucor Corp.

10.32

1.78

9.23

11.64

21.36

37.91

60 Chemicals Occidental Petroleum Corp.

32.48

0.62

8.65

41.22

24.69

50.06

69 Motor Vehicles Paccar Inc.

8.06

1.02

22.88

23.35

9.27

30.12

29 Beverages PepsiCo Inc.

12.52

1.03

8.77

11.28

14.57

30.16

351 Railcars, Ships, & Other Trans. Equip. Polaris Industries Inc.

7.51

2.48

7.73

5.72

18.07

39.61

13 Chemicals Procter & Gamble Co.

12.79

0.92

5.91

10.38

12.72

42.00

156 Communications Equipment Qualcomm Inc.

37.78

0.45

9.94

16.25

19.81

22.18

339 Primary Metals Quanex Corp.

7.88

1.79

12.18

34.84

16.69

30.99

226 Metals Reliance Steel & Aluminum Co.

6.09

1.91

6.64

14.37

13.14

24.98

500 Food Sanderson Farms Inc.

7.02

2.26

10.31

-4.38

18.84

25.29

28 Petroleum & Coal Products Sunoco Inc.

2.89

3.40

35.84

32.40

12.06

60.61

268 Publishing & Printing Symantec Corp.

20.76

0.46

23.54

38.11

12.03

22.10

59 Petroleum & Coal Products Tesoro Corp.

3.06

3.25

19.34

35.22

12.44

38.20

270 Motor Vehicles Thor Industries Inc.

4.76

2.98

14.34

16.94

15.97

23.80

399 Apparel Timberland Co.

10.51

1.99

5.34

4.34

21.73

32.18

477 Publishing & Printing Valassis Communications Inc.

8.43

1.62

31.65

8.33

12.93

67.89

10 Petroleum & Coal Products Valero Energy Corp.

4.37

2.51

23.47

50.43

18.51

46.04

421 Machinery Varian Medical Systems Inc.

14.94

1.05

5.40

11.90

17.65

33.66

457 Motor Vehicles Wabash National Corp.

9.15

2.21

10.65

16.58

25.71

67.50

208 Computers & Other Electronic Products Western Digital Corp.

5.45

2.29

20.23

19.43

17.12

40.69

202 Petroleum & Coal Products Western Gas Resources Inc.

5.24

1.70

28.72

28.96

11.28

30.42

Median

8.79

1.58

14.69

22.97

15.45

35.55

Average

11.49

1.67

18.02

24.35

16.68

38.68

33 Industry Leaders

IndustryWeek applies the IW 50 Best Manufacturers formula to the IW U.S. 500 list to extract the top performers in each of the 33 industries on the IW U.S. 500 list.

US2006 Rank

Primary Industry

Company

Profit Margin

Sales Turns

Inv. Turns

Rev. Growth

ROA

ROE

23 Aerospace & Defense Lockheed Martin Corp.

4.90

1.34

18.32

4.75

7.14

25.99

399 Apparel Timberland Co.

10.51

1.99

5.34

4.34

21.73

32.18

29 Beverages PepsiCo Inc.

12.52

1.03

8.77

11.28

14.57

30.16

60 Chemicals Occidental Petroleum Corp.

32.48

0.62

8.65

41.22

24.69

50.06

156 Communications Equipment Qualcomm Inc.

37.78

0.45

9.94

16.25

19.81

22.18

418 Computer Software Activision Inc.

9.84

1.08

22.70

48.35

14.28

16.61

14 Computers & Other Electronic Products Dell Inc.

6.39

2.42

88.81

13.62

15.39

55.08

175 Electrical Equipment & Appliances Rockwell Automation Inc.

10.79

1.11

5.43

13.42

12.85

29.02

74 Fabricated Metal Products Illinois Tool Works Inc.

11.57

1.13

6.73

10.15

13.17

19.60

500 Food Sanderson Farms Inc.

7.02

2.26

10.31

-4.38

18.84

25.29

279 Furniture & Fixtures HNI Corp.

5.61

2.15

18.53

17.06

13.45

20.54

471 Instruments Waters Corp.

17.44

0.81

3.52

4.86

13.83

29.76

380 Leather Products Coach Inc.

22.72

1.27

2.31

29.47

37.78

49.68

421 Machinery Varian Medical Systems Inc.

14.94

1.05

5.40

11.90

17.65

33.66

180 Medical Instruments & Equipment Stryker Corp.

13.86

0.99

3.07

14.29

16.53

24.53

426 Metal Products Grant Prideco Inc.

14.00

0.88

2.39

42.76

14.06

26.79

226 Metals Reliance Steel & Aluminum Co.

6.09

1.91

6.64

14.37

13.14

24.98

254 Miscellaneous Alliant Techsystems Inc.

5.48

0.93

17.47

18.38

5.42

27.21

98 Motor Vehicle Parts Cummins Inc.

5.55

1.44

7.06

17.54

8.43

39.26

270 Motor Vehicles Thor Industries Inc.

4.76

2.98

14.34

16.94

15.97

23.80

62 Paper Kimberly-Clark Corp.

9.86

0.98

6.33

5.43

9.22

21.33

1 Petroleum & Coal Products Exxon Mobil Corp.

9.95

1.74

19.70

23.91

18.50

35.51

17 Pharmaceuticals Johnson & Johnson

20.61

0.87

3.62

6.69

19.53

32.73

424 Plastics AptarGroup Inc.

7.25

1.02

4.97

6.43

7.28

11.46

75 Primary Metals Nucor Corp.

10.32

1.78

9.23

11.64

21.36

37.91

404 Publishing & Printing Autodesk Inc.

21.59

1.12

12.78

23.46

28.80

50.75

351 Railcars, Ships, & Other Trans. Equip. Polaris Industries Inc.

7.51

2.48

7.73

5.72

18.07

39.61

49 Rubber Products Goodyear Tire & Rubber Co.

1.16

1.26

5.59

7.36

1.38

313.19

252 Stone, Clay, Glass & Concrete Products Vulcan Materials Co.

13.43

0.81

11.67

17.97

10.61

19.30

134 Textiles Mohawk Industries Inc.

5.41

0.83

4.48

12.58

8.14

13.43

7 Tobacco Altria Group Inc.

10.66

0.91

6.37

9.20

10.27

33.97

265 Wood Products Louisiana-Pacific Corp.

17.53

0.72

7.82

-8.79

13.20

25.77

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