Fortune magazine released the 2012 update of its Fortune 500 list, and the top spot has changed hands, with Exxon Mobil knocking Wal-Mart Stores Inc. out of the No. 1 position. Exxon has been ranked No. 2 on last years list.
While Wal-Marts recent bribery scandal has dealt a short-term fiscal blow to the retailing behemo, the oil giants ascension was driven by the simple fact of making an awful lot of money. As Fortune notes:
It’s tough to beat the kind of year Exxon Mobil had in 2011. Shares rose by 20% and profits surged by 35% to $41.1 billion. Revenues jumped 28% to $452.9 billion . . . Exxon has certainly benefited from rising oil prices, particularly during the last quarter of 2011. But the company has also positioned itself well to capitalize on the latest controversial trend in domestic energy production: Fracking. Exxon now produces just about as much gas as it does oil, thanks to its $35 billion purchase of XTO Energy in 2010.
In addition to Exxon, two other energy companies are in the top five: Chevron is at No. 3 (right behind Wal-Mart, which fell to No. 2) and ConocoPhillips comes in at No. 4. The fifth slot is filled by General Motors, which rose up three spots from last years showing at No. 8.
Wal-Mart, which had topped the list for two consecutive years, slipped as a result of the still-struggling U.S. economy:
The retailer was forced to aggressively cut prices to reverse its declining same store sales in the U.S. That helped push revenues up by 6% during 2011, to $447 billion, but it hurt Wal-Mart’s bottom lineprofits declined by 4.6% during the year, to $15.7 billion.
The world’s largest retailer has struggled to maintain growth at its U.S. stores, even as the economy has shown signs of recovery. Although the unemployment rate has fallen, the housing market remains unstable and consumer spending hasn’t reflected a new attitude for many Americans.
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