Steady As She Goes

$100 billion dollars. At 50 cents a pop, that would buy enough cans of soda laid end-to-end to encircle the earth 600 times. The annual revenues of nine manufacturers at the very top of this year's IW 1000 beat the $100 billion mark by at least $7 billion. In so doing they exceeded the gross national income of more than 100 of the world's countries according to World Bank estimates, including Chile, the Czech Republic, Ireland and Malaysia.

Indeed, piloting one of these mega-manufacturers can be a lot like steering a ship of state. Anyone who's ever paddled a canoe with children on board can understand the challenge of plotting an economically prosperous course and getting hundreds of thousands of employees to pull in the same general direction without rocking the boat. Less like a canoe and more like a battleship, such companies may not turn on a dime, but they can withstand rough economic seas that would swamp many smaller craft.

Among the group of 12-digit (count the zeros on your fingers and toes) corporations, Exxon Mobil (No. 1) is a giant among giants. The company topped the list for the third year in a row with over $200 billion in annual sales despite a 4% decline in total revenues. In second place, General Motors (No. 2), trailed Exxon by almost $18 billion.

As a group, the world's 1,000 largest publicly traded manufacturing companies chalked up over $9.5 trillion in sales in 2002. Sure, some had better years than others. AOL Time Warner (No. 39) -- the media conglomerate and one of the world's largest publishers -- topped the list of poor performers with a staggering net loss of $98.6 billion as the company marked down the value of goodwill from its 2000 merger. While fortune may not always favor the big, only one of the $100-billion-plus companies reported negative earnings in 2002: Ford (No. 5) cut its annual loss to just below $1 billion from around $5.5 billion a year ago. Modest Growth For the most part, manufacturers held their own in 2002. The IW 1000 companies averaged 2.7% revenue growth, which compares with estimated global GDP growth of 1.8% in 2002, and three out of four of the largest publicly traded manufactures made money last year. Nothing to crow about but not too bad for an economy stuck in first gear. The 210 manufacturers reporting $10 billion or more in revenues had slightly higher average growth of 3.5% but a much larger proportion -- almost half -- reported losses. The Top 10 largest manufacturers on the IW 1000, almost exclusively petroleum and automotive manufacturers -- the exception being General Electric (No. 7), which remains in a class by itself -- accounted for 16% of total revenues. Winning Industries Sector-by-sector analysis reveals that while the total number of companies in some areas -- electronics/ electric equipment ($1.24 trillion), food ($816 billion), and chemicals ($677 billion) -- outnumber petroleum/coal products ($1.66 trillion) and motor vehicles and parts ($1.52 trillion) on the IW 1000, the latter two sectors outpace all others in terms of total revenues. Rounding out the Top 10 industrial sectors are metals ($419 billion), pharmaceuticals ($394 billion), computer/office equipment ($388 billion), industrial equipment ($319 billion) and miscellaneous ($307 billion). Surprisingly, the sector that leads all others in terms of average revenue growth is textiles (15%), followed closely by rubber/plastics (13%). At the forefront of textiles is Reliance Industries Ltd. (No. 239), a vertically integrated Indian producer of petroleum products including polypropylene and polyester that reported $8.7 billion in revenues in 2002, a 46% increase over the previous year. Mohawk Industries (No. 438), the U.S. manufacturer of carpet and other flooring materials, had 2002 revenues of $4.5 billion, up 31% with the acquisition of a ceramic tile operation. Pharmaceuticals reported the healthiest growth (7.9%) among sectors with a large number of companies on the list. With $51.8 billion in sales and annual growth of 8.5%, Merck (No. 27) remains the largest company in this industry. It soon will be challenged at the top by the combined Pfizer (No. 57)-Pharmacia (No. 151). The merger was finalized in mid-April and won't impact financial filings, and consequently the IW 1000 rankings, until next year. Amgen (No. 367) outpaced its peers with revenue growth of 38% in 2002 -- largely as a result of its acquisition of Immunex, a Seattle-based biotech company. Amgen reported a $1.4 billion net loss for the year however, attributed to the write off of acquisition-related in-process research and development. With a profit margin of 32%, Germany's Schering AG was the most profitable drug company in 2002. The next best sectors in terms of growth, motor vehicles and food, reported an average 6% revenue increase for 2002. Porsche AG (No. 380), the venerable German sports-car company, was the most profitable automaker with a profit margin of 9.2%. In the food sector, a newcomer to the IW 1000, the Brazilian brewer Companhia de Bebidas das Americas (No. 823), posted the strongest financial results, reporting 12.3% revenue growth and a 20.6% profit margin. Four industrial sectors lost ground in 2002. Average revenues for makers of computers and office equipment fell 3.4%. Computer software developers were down 3.6%, and manufacturers of stone, clay and glass products dropped 4.2%. Electronics/electric equipment struggled the most. Average revenues fell 5.7% last year. Even though the company's total revenues fell 22% to $2.7 billion, Rohm Co. Ltd. (No. 678) still managed to post the highest profit margin in the electronics sector at 12.2%. The Japanese firm makes displays, passive electronic components and semiconductor products. Other companies with profit margins exceeding 10% in the electronics sector included some household names: Qualcomm (No. 619), Intel (No. 74), GE (No. 7) and Energizer Holdings (No. 951). GE maintained its long-running, recession-defying record of strong earnings performance. Energizer, which was spun off in April 2000 from Ralston Purina (currently a subsidiary of Nestl No. 17), bounced back from a $39 million loss in 2001. Country By Country With $3.4 trillion in total revenues and 321 companies, U.S.-headquartered manufacturers represented one-third of the world total. Japanese industry took second place, posting $1.8 trillion in total revenues from 234 companies. Only 10 other countries accounted for $100 billion or more in revenues. These included Germany ($821 billion), France ($661 billion), the United Kingdom ($586 billion), and The Netherlands (327 billion). Total revenues for IW 1000 manufacturers based in South Korea, Italy, Switzerland, Canada, Sweden and Finland, ranged between $100 billion and $250 billion. Looking at the top six countries, industry in France performed best in 2002 with average revenue growth of 3.7%; two-thirds of French manufacturers posted net revenue gains. Japan had the worst showing with a 1.4% decline in average revenues. No surprise that five of the 10 largest Japanese manufacturers lost money in the most recent fiscal year. How did China fare? State-owned enterprises don't qualify for the IW 1000, but the country does have five publicly traded manufacturing companies on this year's list: four petroleum/chemical companies plus Aluminum Corp. of China Ltd., a manufacturer of raw aluminum products. China Petroleum & Chemical Corp. (No. 38) lead the way with $41 billion in sales. Four of the five Chinese companies are traded on the New York Stock Exchange. New Arrivals Mergers, acquisitions, divestments and delistings always make room for newcomers on the IW 1000. In 2003 there are 82 new companies. First-timers include such notables as Intier Automotive (No. 510), a Canadian auto-part supplier formed in 2001; Fromageries Bel (No. 916), a French maker of soft cheeses known for its laughing-cow logo; Electronic Arts Inc. (No. 961), the video-game publisher (John Madden Football and The Sims); and Greif Bros. Corp. (No. 981), a 125-year-old supplier of industrial packaging headquartered near Columbus, Ohio. When it comes to charting a profitable course in 2003, another first timer, Hanjin Heavy Industries & Construction Co. Ltd. (No. 1000), offers some guidance. The Korean construction and shipbuilding firm narrowly inched onto the list with $1.603 billion in sales. The company builds large liquid-natural-gas carriers, oil tankers, container ships and a variety of smaller craft. With the trend to larger vessels and more stringent safety standards, the company uses the latest simulation techniques to study the effects on its hull designs in order to develop superior ships that will offer safe passage through the worst weather on the high seas. Batten down the hatches, 2003 is shaping up to be another stormy ride. ********** World's Largest Companies By Country

USA -- 321 Companies $3,467,665 Total Revenues 1.6% Average Revenue Growth
2003 Rank	Company	Revenue ($US millions)	Profit Margin (%)	Revenue Growth (%)
1	Exxon Mobil Corp.	204,506	5.6	-4.2
2	General Motors Corp.	186,763	0.9	5.4
5	Ford Motor Co.	162,586	-0.6	0.1
7	General Electric Co.	131,698	10.7	4.6
10	ChevronTexaco Corp.	99,049	1.1	-6.8
13	IBM Corp.	81,186	4.4	-5.5
14	Altria Group Inc.	80,408	13.8	-10.6
15	Verizon Communications Inc.	67,625	6.0	0.7
23	ConocoPhillips	57,224	-0.5	113.0
24	Hewlett-Packard Co.	56,588	-1.6	25.1
26	Boeing Co.	54,069	0.9	-7.1

Japan -- 234 Companies $1,843,582 Total Revenues -1.4% Revenue Growth
2003 Rank	Company	Revenue ($US millions)	Profit Margin (%)	Revenue Growth (%)
8	Toyota Motor Corp.	126,002	4.1	12.5
16	Hitachi Ltd.	66,676	-6.1	-5.0
19	Sony Corp.	63,210	0.2	3.6
20	Honda Motor Co. Ltd.	61,410	4.9	13.9
22	Matsushita Electric Industrial Co. Ltd.	57,358	-6.3	-10.5
28	Nissan Motor Co. Ltd.	51,689	6.0	1.8
33	Toshiba Corp.	45,607	-4.7	-10.1
36	NEC Corp.	43,468	-5.9	-6.8
37	Fujitsu Ltd.	41,763	-7.6	-8.7
45	Japan Tobacco Inc.	37,903	0.8	0.9

Germany -- 49 Companies $821,373 Total Revenues 1.5% Average Revenue Growth
2003 Rank	Company	Revenue ($US millions)	Profit Margin (%)	Revenue Growth (%)
6	DaimlerChrysler AG	156,135	3.3	-2.2
11	Volkswagen AG	95,075	3.0	-1.7
12	Siemens AG	89,075	3.0	-0.2
31	RWE AG	50,326	-2.7	NA
35	Bayerische Motoren Werke AG	44,134	4.8	10.1

France -- 45 Companies $661,934 Total Revenues 3.7% Average Revenue Growth
2003 Rank	Company	Revenue ($US millions)	Profit Margin (%)	Revenue Growth (%)
9	Total Fina Elf SA	107,031	5.8	-2.6
21	Vivendi Universal SA*	59,872	-23.7	34.6
25	Peugeot SA	55,223	3.2	2.0
32	France Telecom	48,672	-44.5	8.4
44	Renault SA*	37,943	2.9	-9.5

*2001 year-end revenue

United Kingdom -- 56 Companies $586,186 Total Revenues -0.8% Average Revenue Growth
2003 Rank	Company	Revenue ($US millions)	Profit Margin (%)	Revenue Growth (%)
4	BP PLC	178,721	3.8	2.6
30	Unilever Group	50,384	4.2	-6.3
50	GlaxoSmithKline PLC	34,022	18.6	3.5
111	British American Tobacco PLC*	18,238	8.9	4.2
113	Diageo PLC	18,095	14.3	-12.0

*2001 year-end revenue

Netherlands -- 20 Companies $326,967 Total Revenues 1.9% Average Revenue Growth
2003 Rank	Company	Revenue ($US millions)	Profit Margin (%)	Revenue Growth (%)
3	Royal Dutch/Shell Group	179,431	5.3	32.7
54	Royal Philips Electronics NV	33,214	-10.1	-2.3
61	EADS NV	31,211	-1.0	-11.6
141	Akzo Nobel NV	14,615	5.8	-0.8
198	Heineken NV	10,744	7.7	12.3

Clash Of The Titans

2003 Rank	Company	Revenue Growth (%)	Profit Margin (%)
	Automobiles	4.6	2.9
2	General Motors Corp., U.S.A.	5.4	0.9
5	Ford Motor Co., U.S.A.	0.1	-0.6
6	DaimlerChrysler AG, Germany	-2.2	3.3
8	Toyota Motor Corp., Japan	12.5	4.1
11	Volkswagen AG, Germany	-1.7	3.0
18	Fiat SpA*, Italy	0.1	-0.7
20	Honda Motor Co. Ltd., Japan	13.9	4.9
25	Peugeot SA, France	2.0	3.2
28	Nissan Motor Co. Ltd., Japan	1.8	6.0
35	Bayerische Motoren Werke AG, Germany	10.1	4.8
44	Renault SA*, France	-9.5	2.9
53	Hyundai Motor Co.*, South Korea	22.6	2.9
	Motor Vehicle Parts and Components	12.1	1.1
71	Delphi Corp., U.S.A.	5.1	1.3
102	Johnson Controls Inc., U.S.A.	9.1	3.0
104	Denso Corp., Japan	19.2	3.0
110	Visteon Corp., U.S.A	3.1	-1.9
146	Lear Corp., U.S.A.	5.9	0.1
167	Magna International Inc., Canada	17.6	4.3
202	Valeo SA, France	-4.2	1.4
204	Aisin Seiki Co. Ltd., Japan	8.3	2.1
210	Faurecia*, France	64.6	-0.6
219	Dana Corp., U.S.A.	-7.4	-1.9
	Chemicals	-2.5	1.5
52	BASF AG, Germany	-3.5	5.0
55	Bayer AG, Germany	-2.4	6.7
70	Dow Chemical Co., U.S.A.	-0.7	-1.2
83	Du Pont & Co., U.S.A.	-3.3	-4.5
	Petroleum	19.0	4.4
1	Exxon Mobil Corp., U.S.A.	-4.4	5.6
3	Royal Dutch/Shell Group, Netherlands	32.7	5.3
4	BP PLC, United Kingdom	2.6	3.8
9	Total Fina Elf SA, France	-2.6	5.8
10	ChevronTexaco Corp., U.S.A.	-6.8	1.1
23	ConocoPhillips, U.S.A.	113.0	-0.5
29	Eni SpA, Italy	-1.7	9.4
	Aircraft and Defense Systems	6.6	1.2
26	Boeing Co., U.S.A.	-7.1	0.9
61	EADS NV, Netherlands	-11.6	-1.0
67	United Technologies Corp., U.S.A.	1.1	7.9
78	Lockheed Martin Corp., U.S.A.	-10.8	1.9
126	Northrop Grumman Corp., U.S.A.	-26.9	0.4
129	Raytheon Co., U.S.A.	-0.6	-3.8
157	General Dynamics Corp., U.S.A.	13.7	6.6
199	Thales*, France	19.7	-3.6
	Pharmaceuticals	1.9	15.0
27	Merck & Co. Inc., U.S.A.	8.5	13.8
46	Johnson & Johnson, U.S.A.	10.0	18.2
50	GlaxoSmithKline PLC, United Kingdom	3.5	18.6
57	Pfizer Inc., U.S.A.	0.4	28.2
92	Novartis AG, Switzerland	1.2	22.6
97	Aventis, France	-10.1	10.1
101	Roche Holding Ltd., Switzerland	1.7	-14.4
112	Bristol-Myers Squibb Co., U.S.A.	-6.7	11.4
114	AstraZeneca PLC, United Kingdom	8.3	15.9
116	Abbott Laboratories, U.S.A.	8.6	15.8
141	Akzo Nobel NV, Netherlands	-0.8	5.8
142	Wyeth, U.S.A.	3.2	30.5
151	Pharmacia Corp., U.S.A.	1.1	4.3
189	Eli Lilly & Co., U.S.A.	-4.0	24.5
205	Schering-Plough Corp., U.S.A.	3.9	19.4
	Personal Computers	-3.2	-1.5
13	IBM Corp., U.S.A.	-5.5	4.4
24	Hewlett-Packard Co., U.S.A.	25.1	-1.6
36	NEC Corp., Japan	-6.8	-5.9
37	Fujitsu Ltd., Japan	-8.7	-7.6
62	Dell Computer Corp.*, U.S.A.	-2.3	4.0
353	Apple Computer Inc., U.S.A.	7.1	1.1
430	MiTAC International Corp.*, Taiwan	NA	0.6
473	Gateway Inc., U.S.A	-31.4	-7.1
	Software	-6.6	13.3
66	Microsoft Corp., U.S.A.	12.1	27.6
220	Oracle Corp., U.S.A.	-10.9	23.0
279	SAP AG, Germany	1.0	43.5
627	Computer Associates Intl. Inc., U.S.A.	-29.4	-37.2
87-	PeopleSoft Inc., U.S.A.	-6.0	9.4
	Consumer Packaged Goods	-0.1	11.4
30	Unilever Group, United Kingdom	-6.3	4.2
40	Procter & Gamble Co., U.S.A.	2.5	10.8
46	Johnson & Johnson, U.S.A.	10.0	18.2
162	Kimberly-Clark Corp., U.S.A.	-6.6	12.3
	Automation and Controls	-1.9	0.0
7	General Electric Co., U.S.A.	4.6	10.7
12	Siemens AG, Germany	-0.2	3.0
87	ABB Ltd.*, Switzerland	3.3	-0.6
95	Honeywell International Inc., U.S.A.	-5.8	-1.0
187	Invensys PLC, United Kingdom	-11.3	-12.5
	Consumer Electronics	-1.4	-1.8
16	Hitachi Ltd., Japan	-5.0	-6.1
19	Sony Corp., Japan	3.6	0.2
22	Matsushita Electric Industrial Co. Ltd., Japan	-10.5	-6.3
33	Toshiba Corp., Japan	-10.1	-4.7
42	Samsung Electronics Co. Ltd.*, South Korea	6.7	6.6
54	Royal Philips Electronics NV, Netherlands	-2.3	-10.1
63	Mitsubishi Electric Corp., Japan	-11.6	-2.1
82	LG Electronics Inc.*, South Korea	31.5	3.4
118	Sanyo Electric Co. Ltd., Japan	-5.8	0.1
138	Sharp Corp., Japan	-10.4	0.6
	Contract Electronics Manufacturing	1.7	-12.3
179	Solectron Corp., U.S.A.	-34.3	-25.3
238	Sanmina-SCI Corp., U.S.A.	116.1	-30.8
256	Celestica Inc., Canada	-17.3	-5.4
282	Flextronics International Ltd., Singapore	-37.7	-1.2
540	Jabil Circuit Inc., U.S.A.	-18.1	1.0
	Imaging Products	10.5	1.5
85	Canon Inc.*, Japan	4.5	5.6
103	Fuji Photo Film Co. Ltd., Japan	66.7	3.4
133	Xerox Corp., U.S.A.	-6.8	0.6
169	Eastman Kodak Co., U.S.A.	-3.0	6.0
442	Konica Corp., Japan	-0.8	2.1
454	Olympus Optical Co. Ltd., Japan	13.2	2.0
466	Minolta Co. Ltd., Japan	10.0	-6.7
489	Nikon Corp., Japan	-0.2	-1.2
	Wireless Phones	-11.8	-3.5
60	Nokia Corp., Finland	-3.8	7.6
72	L.M. Ericsson Telephone Co.*, Sweden	-20.6	-8.9
76	Motorola Inc., U.S.A.	-11.1	-9.3
	Packaged Food	-4.4	8.4
17	Nestl SA, Switzerland	7.3	8.3
30	Unilever Group, United Kingdom	-6.3	4.2
64	Kraft Foods Inc., U.S.A.	-12.3	11.4
149	Groupe Danone, France	-6.3	9.5
	Raw Foodstuffs	13.7	2.3
69	ConAgra Foods Inc., U.S.A.	1.6	2.8
89	Archer-Daniels-Midland Co., U.S.A.	17.0	2.2
150	Bunge Ltd., Bermuda	22.6	1.8
	Construction Equipment	-1.4	-2.6
100	Caterpillar Inc., U.S.A.	-1.5	4.0
213	CNH Global NV, Netherlands	2.3	-4.3
237	Komatsu Ltd., Japan	-5.1	-7.5
	Farm Equipment	1.0	0.7
100	Caterpillar Inc., U.S.A.	-1.5	4.0
153	Deere & Co., U.S.A.	4.9	2.3
213	CNH Global NV, Netherlands	2.3	-4.3
261	Kubota Corp., Japan	-1.9	1.0
	Liquor	-3.6	11.3
113	Diageo PLC, United Kingdom	-12.0	14.3
357	Fortune Brands Inc., U.S.A.	0.0	9.3
780	Brown-Forman Corp., U.S.A.	1.3	10.3
	Beer	9.9	10.2
161	Anheuser-Busch Cos. Inc., U.S.A.	5.1	14.3
165	Kirin Brewery Co. Ltd., Japan	1.4	2.1
198	Heineken NV, Netherlands	12.3	7.7
290	Interbrew SA, Belgium	-6.8	6.7
481	SABMiller PLC, United Kingdom	35.8	7.9
701	Foster's Group Ltd., Australia	9.5	12.3
823	Companhia de Bebidas das Americas, Brazil	12.3	20.6

Note: Many of these companies compete in a number of sectors, the IW 1000 rankings are based on total revenues as reported in the companies' financial statements; the above rankings do not correspond to market share for a particular product. *2001 year-end revenue