Johnson & Johnson, a giant in the pharmaceutical and personal care products industry, has topped the annual list of leading global corporations for the second consecutive year, while General Electric has slid far below the fifth position it held for the past five years.
This list has been compiled for the fifth consecutive year by the financial weekly Barron’s, based on the assessment of financial experts of the 100 largest corporations in the world. Warren Buffett’s Berkshire Hathaway ranks second, followed by Procter & Gamble, Apple, and Wal-Mart Stores. GE, which was first on the list in 2005, second in 2006, and fifth in 2007, has now dropped significantly to 43rd place on the list of the most respected global corporations published by Barron’s on Monday. Barron’s highlights that GE’s reputation as a company with strong earnings has been undermined by unmet expectations from last year. "To regain investor respect, as well as its own financial solidity, GE must cut dividends and systematically reduce part of its GE Capital business," said one of the experts surveyed.
While GE has sunk, the fast-food chain McDonald’s has recovered. After completely falling off the list last year, it has reappeared this year at 7th place. Google has slipped from last year’s sixth to this year’s 26th place, attributed to a decline in its stock price by about a third over the past year. Financial experts emphasize that the most respected companies in 2009 were characterized by strong management, solid business strategy, competitiveness, ethical business practices, and growth in revenue and profit. Financial firms, after significant losses and lost investor confidence, have also slipped. Bank of America has dropped to 98th from 82nd place, and HSBC Holdings to 63rd from 48th place. (H)
