Fortune magazine is out with its list of the 500 biggest U.S. companies.
Wal-Mart Stores remains at the head of the list although its profits are #11. ExxonMobile falls from #2 to #4, and its profits dipped to #27. Apple remained #3 and profits were #1.
Berkshire Hathaway moved from #4 to #2 with profits ranked in the third spot. #2 in profits was JP Morgan Chase although its revenues placed it in 23rd place.
The top 10 in revenues were (profits ranking is in parentheses):
1 – Wal-Mart
2 – Berkshire Hathaway
3 – Apple
4 – ExxonMobil
5 – McKesson
6 – United Health Group
7 – CVS Health
8 – General Motors
9 – AT&T
10 – Ford Motor
The top 10 in profits were (revenues ranking is in parentheses):
1 – Apple (3)
2 JP Morgan Chase & Co. (23)
3 Berkshire Hathaway (2)
4 Wells Fargo (27)
5 Alphabet (36)
6 Bank of America Corp (26)
7 Microsoft (25)
8 Johnson & Johnson (39)
9 Citigroup (29)
10 Altria Group (149)
The rankings for Memphis companies in the 500 (revenues ranking in parentheses):
58 -FedEx (124)
133 – International Paper (209)
270 – AutoZone (167)
FedEx remained in the same place as previous year in revenues, International Paper dropped six places, and AutoZone climbed 10 spots.
Revenues:
FedEx – $50.4 billion, an increase of 6.1% since 2015
International Paper – $21.1 billion, a decrease of 5.8%
AutoZone – $10.6 billion, an increase of 4.4%
Profits:
FedEx – $1.8 billion, an increase of 73.3% since 2015
International Paper – $904 million, a decrease of 3.6%
AutoZone – $1.2 billion, an increase of 7%
The three Memphis companies on the Fortune 500 have cumulative revenues of $82.1 billion, which is slightly larger than the GDPs of Sudan and Sri Lanka, and one-third more than Guatemala, Ethiopia, and Kenya.
The three Memphis companies have cumulative revenues larger than the GDPs of New Orleans, Salt Lake City, Louisville, Oklahoma City…and Memphis, whose GDP is $71.3 billion.
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Comparing the revenues and profits of these global companies is interesting, but it’s just data.
What matters is how they distribute profits, especially in cities where they operate. FedEx, IP and AutoZone don’t do nearly enough to help the serious problems in Memphis. Of course they help by employing many, but they hardly have any impact on the daily lives of the tens of thousands of Memphians who live in stark poverty and suffer the poor schools and high crime that permeates all of Memphis.
FedEx employs many executives who make good money and live largely shielded from most of the Memphis crime and poverty, however the vast number who work at FE work in sort and warehouse jobs on night shifts are far from being highly paid. International Paper may have its headquarters here, but the truth is it only employs a small number of executives and administrative staff in Memphis. The same applies to AutoZone.
While it’s a blessing these companies are here, they do not do nearly enough to help the huge problems of poverty, crime and poor schools in a city that desperately needs help.
I’m ticked off that Fred Smith has such a supposedly good reputation but the reality is that he could have done so much more for the people of Memphis over the years. Granted he’s given, but he could have personally given so much more back to the city. FedEx as a company should also have given more. I know they employ people at mostly decent salaries, but it seems both Smith and FedEx could have and should do more for Memphis.
Fred Smith grew up in a small Mississippi town, he’s a former US Marine, Republican and as such I never got the impression he ever really loved Memphis. He is not a patron of the arts or a collector. He’s not a philamprothist. He funds the Zoo because his daughter liked animals and he funds sports because that what he personally likes and what he can write off as a business expense. We crave a well rounded CEO who fights for the city he loves and is busting at the seams with bold ideas and the influence and money to make things happen.
However, Fred is not that person.
Not to mention that FedEx only pays 75% of its property tax bill because it has a PILOT. Then again, so did the other two.
Of these 3 companies I do believe AutoZone gives back the most to Memphis. The Hyde founders connection still has roots there.
Fred Smith has never had much love for Memphis either through FedEx or personally. I dare not go into what may be behind his dislike for Memphis. All of them will gladly continue to take PILOT tax relief, and city gives away like candy.