Forbes List: Most Profitable Publicly-Traded Corporations
Forbes.com has just published this years list of the top corporations. The Forbes web site allows you to sort the list according to different criteria, including national origin, industry, profits, etc.
Just for kicks I sorted by the amount of profit generated. The results were interesting and telling:
18 of the top 100 profit producers were in the banking industry and included, the number one profitable bank, Citicorp/Citibank. On top of that, 11 were in the financial investments industry, which is closely tied to the banking industry. Two of the top 100 were in the insurance industry, which is tied to the banks and the financial investment industry.
It's striking that the bankers are posting top profits, buying up smaller banks, and still lobbying the hell out of congress, crying poor mouth because of the number of people that are declaring bankruptcy from overwhelming unsecured credit card debt. With all the fees, late fees, "real person" helpline fees, APR jumps and general all-around screwing the banks are giving the average consumer, it's not surprising to see that they are in the top 100 so often.
As for the financial investment firms, they get paid whether an investor makes a profit or takes a major hit. They get paid by companies for managing 401K plans, and then charge an additional 1-3% to the employee for "managing" the account... Doesn't it seem weird that they take a hands-off approach to advising folks how to assign the 401K funds, but claim they are managing the account? It also seems a little askew when reports indicate that most 401K investment plans are not making money for the employees, even over the long term... even with significant divestiture.
The reputation of the insurance industry speaks for itself. Most of us have to buy insurance... and most of us are only happy with our insurance coverage when it actually pays out... minus all the denied claims, legal fees and rigmarole.
Fourteen of the top 100 were oil and gas companies. Those of us paying for heating oil, propane, diesel or gasoline are not too surprised that these companies are posting HUGE profits. Additionally, 3 top earners were in the utilities/energy industry. No one paying their electric bill is surprised by that revalation either. One other company from a similar industry, chemical production, was in the top 100 as well. Another related industry posting in that elite group involved transportation and delivery... It was brown... and slower than molasses on a cold winter morning when it comes to delivering packages to residential customers.
Four companies posted were listed in the "consumable durables" category, but all four were major car producers... and none of them were from Detroit, but all of them have factories in the US. No surprise there.
Nine of the elite earners were in the telecommunications industry, with an additional seven in the computer & technology industry. Microsoft was among them, but it was not the top dog. But we all have seen the cost of telecommunication fall but still cost the end-user so much more... strange but true.
Nine more of the top earners were in the pharmaceutical/biotechnology industry... all of them recognizable to anyone that has had to take OTC or prescription medications. One was in the household products industry, which is to say they sell detergents, scouring pads, and floor wax.
Two companies were in the retail industry... one was Wally World and the other was Home Depot.
It seems to me that these companies have not only tapped the consumer market, but taken every advantage--legitimate or otherwise--to screw the consumer in the process.
Look at the bright side... Congress is considering additional tax incentives for those utility, oil and pharmaceutical companies... What a surprise!
Just for kicks I sorted by the amount of profit generated. The results were interesting and telling:
18 of the top 100 profit producers were in the banking industry and included, the number one profitable bank, Citicorp/Citibank. On top of that, 11 were in the financial investments industry, which is closely tied to the banking industry. Two of the top 100 were in the insurance industry, which is tied to the banks and the financial investment industry.
It's striking that the bankers are posting top profits, buying up smaller banks, and still lobbying the hell out of congress, crying poor mouth because of the number of people that are declaring bankruptcy from overwhelming unsecured credit card debt. With all the fees, late fees, "real person" helpline fees, APR jumps and general all-around screwing the banks are giving the average consumer, it's not surprising to see that they are in the top 100 so often.
As for the financial investment firms, they get paid whether an investor makes a profit or takes a major hit. They get paid by companies for managing 401K plans, and then charge an additional 1-3% to the employee for "managing" the account... Doesn't it seem weird that they take a hands-off approach to advising folks how to assign the 401K funds, but claim they are managing the account? It also seems a little askew when reports indicate that most 401K investment plans are not making money for the employees, even over the long term... even with significant divestiture.
The reputation of the insurance industry speaks for itself. Most of us have to buy insurance... and most of us are only happy with our insurance coverage when it actually pays out... minus all the denied claims, legal fees and rigmarole.
Fourteen of the top 100 were oil and gas companies. Those of us paying for heating oil, propane, diesel or gasoline are not too surprised that these companies are posting HUGE profits. Additionally, 3 top earners were in the utilities/energy industry. No one paying their electric bill is surprised by that revalation either. One other company from a similar industry, chemical production, was in the top 100 as well. Another related industry posting in that elite group involved transportation and delivery... It was brown... and slower than molasses on a cold winter morning when it comes to delivering packages to residential customers.
Four companies posted were listed in the "consumable durables" category, but all four were major car producers... and none of them were from Detroit, but all of them have factories in the US. No surprise there.
Nine of the elite earners were in the telecommunications industry, with an additional seven in the computer & technology industry. Microsoft was among them, but it was not the top dog. But we all have seen the cost of telecommunication fall but still cost the end-user so much more... strange but true.
Nine more of the top earners were in the pharmaceutical/biotechnology industry... all of them recognizable to anyone that has had to take OTC or prescription medications. One was in the household products industry, which is to say they sell detergents, scouring pads, and floor wax.
Two companies were in the retail industry... one was Wally World and the other was Home Depot.
It seems to me that these companies have not only tapped the consumer market, but taken every advantage--legitimate or otherwise--to screw the consumer in the process.
Look at the bright side... Congress is considering additional tax incentives for those utility, oil and pharmaceutical companies... What a surprise!
posted by Jim Downey at 7:26 PM
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