The World's Most Richest Companies in 2012

We live in a world where word of mouth is the No. 1 driver of sales and competitive advantage—and because there’s a strong correlation between a company’s reputation and consumers’ willingness to recommend it, businesses need to focus on building those strong bonds with stakeholders. Companies should of course strive to earn the trust and esteem of consumers in its native land, but given that a multinational gets a majority of its revenue from international markets, it really needs to be liked everywhere else, too.

There’s almost always a standard out there with which companies compare themselves. But some companies don’t compare themselves with an standards. They make their own! And they are usually the ones at the top of the food chain! So today, we’ll tell you about some of the Giants.

1. Royal Dutch Shell

Royal Dutch Shell

Rank: 1 (Previous rank: 2)
CEO: Peter R. Voser

Employees: 90,000
Address: Carel van Bylandtlaan 30 The Hague, 2596
Country: Netherlands
Website: www.shell.com

The company at the top of Fortune’s Global 500 list has made headlines for its push to drill in Arctic waters. It's been a controversial plan, in part, because a spill in cold water near Alaska would likely prove difficult to clean. Shell is pushing forward, hoping to begin drilling this July for some of the estimated 90 billion barrels of recoverable oil in the Arctic. Over the next 10-20 years, the company expects oil from the Arctic to be its largest source of crude.

In the short-term, Shell has done well, boosting its earnings for the first quarter of 2012 by 11%, compared to the previous year, to $7.7 billion. Part of the increase in earnings comes from Shell’s long-term projects that have just started producing: namely, a gas-to-liquids plant in Qatar and projects in the Canadian oil sands.

2. Exxon Mobil

Exxon Mobil

Rank: 2 (Previous rank: 3)

CEO: Rex W. Tillerson

Employees: 99,100

Address: 5959 Las Colinas Blvd. Irving, Texas 75039

Country: U.S.

Website: www.exxonmobil.com

Exxon Mobil topped the Fortune 500 this year with a banner 2011, raking in $41.1 billion in profits, up 35% from the previous year. To keep the energy giant growing, CEO Rex Tillerson has made a big bet on natural gas. The company now produces roughly as much natural gas as oil. Tillerson believes the long-term play will pay off over the next 25-30 years.

In the short term, the price of natural gas remains low in the U.S. and other markets. This past quarter, Exxon Mobil's profits decreased by about 11.3% from the previous year, due to a decrease in oil and gas production, according to the company. Like other oil majors, Exxon Mobil is champing at the bit to boost production by drilling in the Arctic this year.

3. Wal-Mart Stores

 Wal-Mart Stores

Rank: 3 (Previous rank: 1)

CEO: Michael T. Duke
Employees: 2,200,000
Address: 702 S.W. Eighth St. Bentonville, Arkansas 72716
Country: U.S.
Website: www.walmartstores.com

The world’s biggest retailer enjoyed robust profits overseas, but continued struggling at home with weak sales and public relations debacles. For fiscal year 2011, Wal-Mart saw operating income rise by 6.4% to more than $25 billion. But while the Bentonville, AR-based chain saw gains abroad, executives found it harder to lure U.S. shoppers.

The chain saw foot traffic decline, and Wal-Mart tried to bring back shoppers pinched by high unemployment and gas prices. The company also began opening 40 smaller “Walmart Express” stores in rural and urban areas.

Beyond sales, the chain also struggled with a shaky public image. In June 2011, the U.S. Supreme Court threw out a discrimination lawsuit accusing the retailer of favoring men over women in promotions and pay. While executives may have breathed a sigh of relief, Wal-Mart suffered another blow when U.S. lawmakers launched an investigation in April 2012 following allegations of bribery at the chain’s Mexican affiliate.

4. BP

BP

Rank: 4 (Previous rank: 4)

CEO: Robert W. Dudley
Employees: 83,400
Address: 1 St. James Sq. London, SW1Y 4PD
Country: Britain
Website: www.bp.com

With the Deepwater Horizon oil spill in the Gulf of Mexico two years ago, BP was forced to sell $30 billion of its assets to pay for related costs and claims, but with profits rebounding from a $3.3 billion loss in 2010 to nearly $26 billion last year, it appears the third-largest energy company in the world is well on its way to righting itself.

Throughout 2011, the company focused on three main priorities – reviewing and restructuring its safety procedures, cooperating with efforts related to the oil spill, and establishing a 10-point plan to grow its operating cash flow. “We remained mindful of the tragic events seen in 2010 and the need to ensure such an accident never happens again,” wrote BP chairman Carl-Henric Svanberg in a letter to shareholders.

5. Sinopec Group

Sinopec Group

Rank: 5 (Previous rank: 5)

CEO: Fu Chengyu
Employees: 1,021,979
Address: 22 Chaoyangmen N. St. Beijing, 100728
Country: China
Website: www.sinopecgroup.com

Known as China Petroleum and Chemical Corp., China’s biggest oil producer and refiner continued to expand by increasing production of crude oil and natural gas. Sinopec’s scale is similar to major multinational oil and gas companies. But unlike its competitors, the state-owned company is more vulnerable to fluctuations in oil price margins because the Chinese government has pressured markets to avoid raising domestic energy prices. To compensate for losses from refining, the company plans to produce 50 million tons of crude overseas annually by 2015.

Nevertheless, the company continues to grow by forming partnerships and buying multinational oil companies worldwide. In one of its biggest acquisitions of 2011, Sinopec purchased Daylight Energy Ltd. in October for $2.1 billion in cash, gaining Canadian oil and shale-gas reserves and adding to the company’s expansion outside of Asia.

6. China National Petroleum

China National Petroleum

Rank: 6 (Previous rank: 6)

CEO: Jiang Jiemin
Employees: 1,668,072
Address: 9 Dongzhimen N. St. Beijing, 100007
Country: China
Website: www.cnpc.com.cn

China National Petroleum has become a major player in the oil industry, both by partnering with the governments of oil-rich nations such as Iraq and Qatar as well as by ramping up domestic oil and gas production. In 2011, CNPC produced 107.54 million tons of crude oil in China -- a 2% increase from the previous year -- the company stated in its 2011 financial report. Like many other oil companies, CNPC is also boosting its natural gas production.

7. State Grid

State Grid

Rank: 7 (Previous rank: 7)

CEO: Liu Zhenya
Employees: 1,583,000
Address: 86 W. Chang'An St. Beijing, 100031
Country: China
Website: www.sgcc.com.cn

China's government-owned power company is in pretty good shape compared to its neighbors in Europe. The turbulent economic situation overseas has left many countries -- including Spain -- turning to China for a lifeline. Just last month, State Grid announced its plan to buy high-voltage electricity transmissions from Spanish construction company Actividades de Construccion y Servicios for $938.2 million.

8. Chevron

Chevron

Rank: 8 (Previous rank: 10)

CEO: John S. Watson
Employees: 61,189
Address: 6001 Bollinger Canyon Rd. San Ramon, California 94583
Country: U.S.
Website: www.chevron.com

Chevron has managed to hold strong throughout the tough economic environment, raising its net income by 41.4% in 2011, up from just over $19 billion in 2010. The company is also generating a lot of positive buzz surrounding its development of a new ethylene plant -- one of the first to be built in the U.S. in more than a decade. The expansion comes at a time when lightweight plastics derived from ethylene are in high demand for the production of electric vehicles. According to market analyst firm Frost & Sullivan, the use of plastics in EVs is expected to reach a market revenue of $73 million by 2017, up from $500,000 in 2010.

9. ConocoPhillips

ConocoPhillips

Rank: 9 (Previous rank: 12)

CEO: Ryan M. Lance
Employees: 29,800
Address: 600 N. Dairy Ashford Rd. Houston, Texas 77079
Country: U.S.
Website: www.conocophillips.com

ConocoPhillips has a strategy for success: less is more. The company continued to shed the remainder of its LUKOIL assets in 2011 and shifted its focus toward assets that give the highest returns. In addition to reducing its debt by nearly $1 billion, ConocoPhillips increased its revenues by 26%, up from $198.7 million in 2010, according to its annual report.

10. Toyota Motor

Toyota Motor

Rank: 10 (Previous rank: 8)

CEO: Akio Toyoda
Employees: 325,905
Address: 1 Toyota-cho Toyota, 471-8571
Country: Japan
Website: www.toyota-global.com

Once the envy of the auto industry, the Japanese automaker has dealt with a tumultuous couple of years. And 2011 proved little different. Sales plummeted in April, May and June, following production disruptions caused by the March earthquake and tsunami. A few months later, floods in Thailand weighed on the company's suppliers’ ability to make up for Toyota’s earlier output losses.

For 2011, sales dropped 7% to 1.6 million vehicles. After holding the title for the past three years, Toyota lost its spot as the top-selling automaker in annual global sales, sliding behind General Motors and Volkswagen.

Executives forecast a brighter 2012, however. Last December, the company forecasted a 20% jump in global sales to a record 8.48 million vehicles as it builds inventory and meets pent-up demand in Brazil and China, among other countries.

11. Total

Total

Rank: 11 (Previous rank: 11)

CEO: Christophe de Margerie
Employees: 96,104
Address: 2 Pl. Jean Millier Courbevoie, 92400
Country: France
Website: www.total.com

Europe’s third-largest oil producer continued its ambitious plans for exploration. Not only did it say it would drill twice as many frontier exploration wells, the company also predicted output to climb at 2.5% a year from 2012 to 2015, driven largely by projects in Angola and Nigeria. And banking on interest in renewable energy, Total agreed to buy as much as 60% of solar panel-maker SunPower Corporation for $1.38 billion.

12. Volkswagen

Volkswagen

Rank: 12 (Previous rank: 13)

CEO: Martin Winterkorn
Employees: 501,956
Address: Brieffach 1848-2 Wolfsburg, 38436
Country: Germany
Website: www.volkswagenag.com

For Volkswagen, it’s not just about innovation, it’s also about domination. As one of its goals, the German company has pledged to become the leading automaker in the world by 2018 while still adhering to strict environmental standards. To that end, it opened a new plant in Chattanooga, refreshed vehicles such as the Beetle and Golf Cabriolet, and introduced new lines like the compact, urban-friendly New Small Family of cars.

13. Japan Post Holdings

Japan Post Holdings

Rank: 13 (Previous rank: 9)

CEO: Jiro Saito
Employees: 237,000
Address: 1-3-2 Kasumigaseki Tokyo, 100-8798
Country: Japan
Website: www.japanpost.jp

The once state-run postal service had a solid 2011, with net profit for the fiscal year soaring 11.9% over the previous year to 468.9 billion yen -- the most since Japan privatized its system in 2007.

Though 2011 profits rose, much of that was driven by cutting costs, as the company continued to struggle with with a national decline in mail volume. While Japan Post cut bonuses substantially, its overall operating revenue fell by 4.6% to 16.66 trillion yen.

The company features mail delivery, banking, insurance and over-the-counter services divisions. While net profit rose for Japan Post Bank, profits fell for Japan Post Insurance Co. And Japan Post Service saw net losses.

14. Glencore International

Glencore International

Rank: 14 (Previous rank: 18)
CEO: Ivan Glasenberg
Employees: 58,000
Address: Baarermattstrasse 3 Baar, 6341
Country: Switzerland
Website: www.glencore.com

Glencore International produces and trades a variety of bulk commodities including metals, minerals, oil, coal and cotton. The company faced a tough loss in 2011, losing roughly $330 million trading cotton, which the company attributes to volatility in the commodities market.

Glencore dismissed the head of its cotton unit last year, and is now working on a proposed merger with mining group Xstrata. Key Xstrata shareholders should vote on the merger in July 2012.

The company sees increased demand for commodities in the U.S., thanks to strength in the automobile and aerospace industries, Glencore said in its 2012 first-quarter production report. Demand in Europe continues to be weak, it said, though demand in China still looks promising.

15. Gazprom

Gazprom

Rank: 15 (Previous rank: 35)
CEO: Alexey B. Miller
Employees: 401,000
Address: 16 Nametkina St. Moscow, 117997
Country: Russia
Website: www.gazprom.com

This Russian energy company has long enjoyed a tight-knit relationship with its country’s government. The company's former chairman, Dimitri A. Medvedev, was elected president of Russia in 2008 and now serves as the country's prime minister. Gazprom recently reached a deal with Europe's EDF, an integrated energy company based in France, to jointly invest in gas-fired power plants in Europe. The new agreement only strengthens the company's position as the leading natural gas provider in the country, making Gazprom as the exclusive supplier of natural gas for the project.

16. E.ON

E.ON

Rank: 16 (Previous rank: 29)
CEO: Johannes Teyssen
Employees: 78,889
Address: E.ON Platz 1 Düsseldorf, 40479
Country: Germany
Website: www.eon.com

Germany's largest utility company, E.ON, is struggling in the face of a couple of tough conditions: For one, demand in Europe for energy is flatlining. And last year, the German government called for the shutdown of its nuclear reactors in the wake of the Fukushima plant disaster in Japan.

E.ON and other utilities companies are suing the German government for damages as a result of its decision to close the reactors. E.ON is asking for €8 billion (about $10 billion) in damages. Going forward, the company plans to continue to survive the economic environment by selling non-core assets and boosting its efforts in renewable energy, CEO Johannes Teyssen said during the company's interim report for the first quarter of 2012.

17. ENI

ENI

Rank: 17 (Previous rank: 23)
CEO: Paolo Scaroni
Employees: 78,686
Address: Piazzale E. Mattei 1 Rome, 144
Country: Italy
Website: www.eni.com

If there is one word to describe ENI’s recent deals, it would be “adventurous.” But for this under-the-radar Italian oil and gas giant, they could also prove to be big wins. It signed a production agreement with CNOOC, China’s largest offshore energy producer, which will essentially grant ENI access to nearly 2,000 square miles of deepwater block. Potentially even more lucrative: A partnership with Russia’s largest oil producer Rosneft will see the two companies explore offshore oil reserves in Russia’s Barents and Black Sea, an area estimated to contain a total of 36 billion barrels of oil equivalent (BOE).

18. ING Group

ING Group

Rank: 18 (Previous rank: 17)
CEO: Jan H.M. Hommen
Employees: 104,419
Address: Amstelveenseweg 500 Amsterdam, 1081
Country: Netherlands
Website: www.ing.com

The Dutch financial services giant stepped into 2011 with hopes to complete two initial public offerings – one for its combined European and Asian businesses, the other for its U.S. insurance and investment management business.

But because of market turbulence amid Europe’s ongoing debt crisis, ING decided earlier this year to change part of its plan. It is now considering a sale of its Asian business, among other options. As for its European arm, it is still pursuing an IPO as one option. The firm has said it also plans to move forward with its U.S. public offering.

The Dutch government bailed out the firm during the financial crisis in 2008. As part of the deal, ING is working to split up its banking and insurance assets. The two are already operationally separated, but ING will be fully restructured by the end of 2013. The firm is also working to repay the government. Earlier this year, executives said they would not pay a dividend to shareholders until the state aid is paid off.

19. General Motors

General Motors

Rank: 19 (Previous rank: 20)
CEO: Daniel F. Akerson
Employees: 207,000
Address: 300 Renaissance Center Detroit, Michigan 48265
Country: U.S.
Website: www.gm.com

General Motors accomplished quite a feat under CEO Dan Akerson, who in 2010 led the company through the then-biggest IPO in history after recovering from bankruptcy the year before. In 2011, the company posted record profits of $7.6 billion.

But GM is not out of hot water yet. The U.S. Treasury still owns 500 million shares of the company, and shareholders are clamoring for better post-IPO stock performance. CEO Akerson agrees. At GM's annual meeting in Detroit, Akerson apologized for the fact that the stock is down 33% since the IPO. GM is the fifth largest Fortune 500 company in terms of revenue, Akerson said, but the 20th in terms of profit. His goal is to close the gap.

20. Samsung Electronics

Samsung Electronics

Rank: 20 (Previous rank: 22)
CEO: Oh-Hyun Kwon
Employees: 221,726
Address: 1320-10 Seocho 2-dong Seoul, 137-857
Country: South Korea
Website: www.samsung.com

It was a banner year for Samsung despite a lawsuit from Apple alleging the company had copied the iPad and iPhone's "look and feel." Samsung's Galaxy S II smartphone sold more than 10 million units worldwide, which helped propel the company to the number one spot in smartphones globally. And for the sixth consecutive year, Samsung cornered the TV market, selling nearly 48 million TV units and capturing a 27% share globally. All that helped drive revenues up 11% year-over-year to $149 billion.

21. Daimler

Daimler

Rank: 21 (Previous rank: 24)
CEO: Dieter Zetsche
Employees: 271,370
Address: Mercedesstrasse 137 Stuttgart, 70327
Country: Germany
Website: www.daimler.com

Europe's debt crisis may have truncated growth of the auto market in western Europe, but that doesn't mean all hope is lost for German automotive company Daimler. The company reported a 9% increase in revenues for 2011, up from about $120 million in 2010. While the company says it expects a slower growth rate in 2012, the Mercedes-Benz van market is expected to weather the industry's storms. Last year the van market saw a 17% growth in revenues. The German automaker recently signed a deal with Nissan Motor to expand its partnership with Russia-based auto manufacturer Kamaz. The deal allows the company to further its reach in the Japanese and Russian auto markets.

22. General Electric

General Electric

Rank: 22 (Previous rank: 16)
CEO: Jeffrey R. Immelt
Employees: 301,000
Address: 3135 Easton Turnpike Fairfield, Connecticut 6828
Country: U.S.
Website: www.ge.com

During Jeff Immelt’s 10^th year as CEO, General Electric saw its net income climb 22% to $14 billion despite a slight dip in revenue. The company invested $1 billion in the appliance business with new products expected to roll out over the next two years and plans to move most of the appliance product manufacturing back to the U.S. from China and Mexico. The company also reported a record backlog of orders -- $200 billion -- which Immelt said will help GE eventually reach its goal of growing industrial earnings by 10%.

23. Petrobras

Petrobras

Rank: 23 (Previous rank: 34)
CEO: Maria das Graças Silva Foster
Employees: 81,918
Address: Av. Rep. do Chile 65 Rio de Janeiro, 20031-912
Country: Brazil
Website: www.petrobras.com.br

Brazil's state-controlled oil company has hit some rough waters. While it remains the world's largest deepwater oil producer, the company says it foresees a slight decrease in total production over the next five years -- about 2.5 million barrels per day in 2016, compared to the estimated 3 million barrels per day by 2015 the company projected in its 2011 five-year business plan. The forecast follows an earlier announcement of Petrobras' plan to increase gasoline prices by 7.8 percent and diesel prices by 3.9 percent.

24. Berkshire Hathaway

Berkshire Hathaway

Rank: 24 (Previous rank: 19)
CEO: Warren E. Buffett
Employees: 270,858
Address: 3555 Farnam St. Omaha, Nebraska 68131
Country: U.S.
Website: www.berkshirehathaway.com

The Omaha, NE conglomerate headed by billionaire investor Warren Buffett ended 2011 decently enough but struggled to outperform the stock market.

Berkshire Hathaway reported that its book value per share rose by 4.7%, beating the total return of the S&P 500 index, which remained relatively flat, rising only 2.1%. The results were underwhelming, given that Buffett has long trumped his record of beating the market when the stock market languished. Berkshire saw earnings decline, mostly driven by its core insurance business as the division dealt with high catastrophic losses following earthquakes in New Zealand and Japan.

The company has continued to put its money to work. Berkshire completed a $9 billion deal to buy engine lubricant-maker Lubrizol Corp. The company also named hedge fund guru Ted Weschler as a second investment manager, joining Todd Combs, another former hedge-fund manager, as a candidate to take over Berkshire’s portfolio some day.

In April 2012, Buffett was diagnosed with stage-1 prostate cancer, flaring ongoing speculation regarding succession at the firm. The 81-year-old CEO has said his diagnosis “isn’t remotely life threatening.

25. AXA

AXA

Rank: 25 (Previous rank: 14)
CEO: Henri de Castries
Employees: 96,999
Address: 25 Ave. Matignon Paris, 75008
Country: France
Website: www.axa.com

Europe’s second-largest insurer is betting on Asia to drive growth. At the height of the financial crisis, CEO Henri de Castries was forced to drop the firm’s 2012 earnings goasl. And in 2011, the financial climate proved tough amid Europe’s ongoing debt crisis. The firm posted an 82% drop to $423 million second half of the year, hurt by write-downs on Greek sovereign debt and lower sales in life insurance.

De Castries in June set a 2015 target to reach annual operating profits of more than 6 billion euros compared with 3.88 billion euros in 2010. Meanwhile, it has scaled back in Canada and the U.K., as the firm aims for 10% annual growth in operating earnings per share through 2015.

26. Fannie Mae

Fannie Mae

Rank: 26 (Previous rank: 15)
CEO: Timothy J. Mayopoulos 
Employees: 7,000
Address: 3900 Wisconsin Ave. N.W. Washington, District Of Columbia 20016
Country: U.S.
Website: www.fanniemae.com

27. Ford Motor

Ford Motor

Rank: 27 (Previous rank: 25)
CEO: Alan R. Mulally 
Employees: 164,000
Address: 1 American Rd. Dearborn, Michigan 48126
Country: U.S.
Website: www.ford.com

28. Allianz

allianz

Rank: 28 (Previous rank: 27)
CEO: Michael Diekmann 
Employees: 141,938
Address: Königinstrasse 28 Munich, 80802
Country: Germany
Website: www.allianz.com

29. Nippon Telegraph & Telephone

Nippon Telegraph & Telephone

Rank: 29 (Previous rank: 31)
CEO: Satoshi Miura 
Employees: 224,239
Address: 2-3-1 Ohtemachi Tokyo, 100-8116
Country: Japan
Website: www.ntt.co.jp

30. BNP Paribas

 BNP Paribas

Rank: 30 (Previous rank: 26)
CEO: Jean-Laurent Bonnafé
Employees: 198,423
Address: 16 Blvd. des Italiens Paris, 75009
Country: France
Website: www.bnpparibas.com

Source: http://money.cnn.com/magazines

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