Thursday, August 8, 2013

67 Largest US Corps 2Q 2013 Earnings Up 5% .....Financials Up 46% and Non-Financials Down 7%

There were 67 US Corps which generated After-tax Adjusted Earnings of more than $1 bil in either the 2Q 2013 or the 2Q 2012.

These 67 US Corps generated Total Adjusted Earnings from Continuing Operations of $165.3 bil in the 2Q 2013, up 5% from the 2Q 2012.  If both Fannie Mae and Freddie Mac are excluded, this Total Adjusted Earnings growth drops down to 1%.

The clear story here is how the Financial Corps performed on the Earnings front in the 2Q 2013 versus how the Non-Financial Corps performed.

The 18 Financial Corps generated Total Adjusted Earnings in the 2Q 2013 of $51.8 bil, up an incredibly high 46% over the 2Q 2012.

On the other hand, the 49 Non-Financial Corps generated Total Adjusted Earnings in the 2Q 2013 of $113.4 bil, down 7% from the 2Q 2012.

Yeah, that's a 53% earnings change between the Financial Corps' total earnings being up 46% versus the Non-Financial Corps' total earnings being down 7%.

Thus, the Total Earnings of the 18 Financial Corps comprised 31.4% of the Total Earnings of all 67 Largest Corps in the 2Q 2013, substantially higher than the 22.7% of the Total Earnings the Financial Corps comprised only one year earlier in the 2Q 2012.

This bifurcation between the 2Q 2013 earnings growth of the US Big Financial Industry and the rest of Corporate America is just massive.  This is taking the US towards what existed before the 2008 financial bubble, where the Earnings of the US Big Financial Corps comprised a very significant portion of the Total Earnings of all of Corporate America.

This is a very bad development, being triggered by the substantial propping up of the US Big Financial Industry by the US Congress, which is under effective control to a large extent by the Big Financial Industry, and by US Fed action, which has overwhelmingly benefited the Big Financial Industry and the wealthy.

And this horrible economic development is also being triggered by an uncompromising US Congress which is bent on stopping the US economy in its tracks, which it certainly did very successfully in the 2Q 2013.  And it's also triggered by a US Congress determined to keep expanding the huge economic wealth gap between the wealthy and everyone else.

And I suggest that capitalism is not working properly in the US when the Government Sponsored Enterprise Fannie Mae earns three times what a spectacular company like Google earned in the most recent 2Q 2013, and also when the Government Sponsored Enterprise Freddie Mac earns more in the 2Q 2013 than Coke and Pepsico combined earned.  I'm just saying.  

Below here are the earnings of these 67 Largest US Corps for the 2Q 2013 and for the comparable 2Q 2012:

2Q 2013 2Q 2012


Adjusted Adjusted


Net Net Adjusted Adjusted

Income Income Net Net

From From Income Income

Continuing Continuing Increase Increase

Operations Operations (Decrease) (Decrease)

mil $s mil $s Amount %
US Largest Corps With After-tax Adjusted Earnings above $1 bil






Financial Corps



Fannie Mae 10,095 5,119                 4,976 97%
JPMorgan Chase 6,496 4,960                 1,536 31%
Wells Fargo 5,519 4,622                     897 19%
Freddie Mac 4,988 3,020                 1,968 65%
Citigroup 4,188 2,979                 1,209 41%
Bank of America 4,012 2,463                 1,549 63%
Goldman Sachs 1,931 962                     969 101%
AIG 1,655 1,678                     (23) -1%
MetLife 1,593 1,432                     161 11%
US Bancorp 1,444 1,378                       66 5%
United Health 1,436 1,337                       99 7%
American Express 1,405 1,339                       66 5%
American Express 1,392 1,325                       67 5%
Capital One Financial 1,236 193                 1,043 540%
Visa 1,225 1,055                     170 16%
PNC Financial 1,123 546                     577 106%
Prudential Financial 1,090 648                     442 68%
Morgan Stanley 1,009 562                     447 80%





Total all 18 Financial Corps 51,837 35,618               16,219 46%





Non-Financial Corps



Apple 6,900 8,824               (1,924) -22%
Exxon Mobil                 6,860                 8,410               (1,550) -18%
Chevron 5,365 7,210               (1,845) -26%
Microsoft 4,380 6,123               (1,743) -28%
Johnson & Johnson 4,289 3,644                     645 18%
Oracle 4,114 4,143                     (29) -1%
Pfizer 4,003 4,449                  (446) -10%
Berkshire Hathaway 3,919 3,720                     199 5%
WalMart 3,784 3,742                       42 1%
General Electric 3,685 4,010                  (325) -8%
AT&T 3,606 3,902                  (296) -8%
IBM 3,579 4,077                  (498) -12%
Google 3,233 3,362                  (129) -4%
Coca Cola 2,869 2,791                       78 3%
Cisco Systems 2,728 2,605                     123 5%
Merck 2,530 3,227                  (697) -22%
Procter & Gamble 2,320 2,403                     (83) -3%
Phillip Morris Intl 2,124 2,317                  (193) -8%
Verizon Communications 2,097 1,825                     272 15%
Pepsico 2,050 1,765                     285 16%
Intel 2,000 2,827                  (827) -29%
Walt Disney 1,847 1,831                       16 1%
Ford Motor 1,833 1,203                     630 52%
QualComm 1,823 1,486                     337 23%
ConocoPhillips 1,750 1,500                     250 17%
Comcast 1,734 1,348                     386 29%
Hewlett Packard 1,698 1,949                  (251) -13%
United Technologies 1,552 1,466                       86 6%
Schlumberger 1,536 1,349                     187 14%
Amgen 1,444 1,433                       11 1%
General Motors 1,411 1,496                     (85) -6%
McDonalds 1,397 1,347                       50 4%
AbbVie 1,319 1,267                       52 4%
Boeing 1,289 1,128                     161 14%
Occidental Petroleum 1,276 1,332                     (56) -4%
Altria Group 1,266 1,225                       41 3%
Eli Lilly 1,255 924                     331 36%
Home Depot 1,226 1,035                     191 18%
3M 1,197 1,167                       30 3%
CVS Caremark 1,197 1,042                     155 15%
DuPont 1,189 1,421                  (232) -16%
Medtronic 1,124 1,036                       88 8%
Union Pacific 1,106 1,002                     104 10%
Deere 1,084 1,056                       28 3%
United Parcel Service 1,071 1,116                     (45) -4%
Honeywell 1,021 902                     119 13%
Caterpillar 960 1,699                  (739) -43%
Phillips 66 935 1,417                  (482) -34%
Seagate Technology 447 1,028                  (581) -57%





Total all 49 Non-Financial Corps 113,422 121,581               (8,159) -7%





Grand Total all 67 Largest Corps 165,259 157,199                 8,060 5%