Many companies in the U.S. have suffered since the 2007 financial crisis. Many of them have weathered the storm however there are a few which are still struggling to get a footing. To date, many fortune 500 companies in the U.S. are still suffering huge losses, a trend which is expected to continue in the next few years. Considering Fortune 500 companies are the top 500 companies in the U.S. in terms of the gross revenue, bad performance causes great concern. Below is a list of top 20 fortune 500 companies which have lost and keep losing the most.
20. First Data: Loss of $516 Million in Past Year
Number 20 on the list of fortune 500 companies which have lost and keep losing the most is First data. First Data is among the top players in the credit card processing business. Despite enjoying a huge market share, the company keeps suffering losses the most recent being a $516 million loss in the past financial year. Given the fact that people are still struggling to pay off credit card debt in the U.S., First data isn’t expected to return to profitability anytime soon.
19. Rite Aid: Lost $555 Million in 2011
Rite Aid has been suffering losses for the past five years consecutively despite being ranked number 113 in the fortune 500 list of companies. The only good news for Rite Aid revolves around reducing losses. Considering the company suffered a $555 million loss in 2011, the company still has a long way to go.
18. Masco: Lost $575 Million in 2011
Masco has been in the home improvement and construction business for over 80 years. Since the housing bubble burst, the company has faced serious challenge such as high commodity prices, low demand for its services and restructuring problems. All these factors combined made the company suffer huge losses in the past few years the record loss being $575 million in 2011.
17. The Great Atlantic and Pacific Tea: Loss of $599 Million in Past Year
After being in bankruptcy for over a year, The Great Atlantic and Pacific Tea emerged in early 2012. Of course the company will take some time to recover considering the company suffered a $599 million loss in the last financial year. It is also important to note that the company is in debt. It will definitely take The Great Atlantic and Pacific Tea a few years to return to profitability.
16. Alpha Natural Re
Alpha Natural Resources is undoubtedly one of the largest coal companies in the U.S. Ranked 356th in the fortune 500 list, you would think the company enjoys huge profits considering coal is a highly sought after commodity. This isn’t the case. Alpha Natural Resources has been suffering since the U.S. started getting mild winters driving down heating costs. Many households have also switched to natural gas for heating. This explains why the company suffered a record $677 million in losses in 2011 a trend which is expected to continue.
15. Caesars Entertainment: Loss of $688 Million in Past Year
Caesars Entertainment started facing problems after its 2007 buyout by TPG & Apollo Global Management. Just after the buyout, the company started encountering problems such as declining revenues and debt in excess of $22.5 billion. Having suffered a $688 million loss in the past financial year, Caesars Entertainment will definitely keep losing.
14. Eastman Kodak: Loss of $764 Million in Past Year
Ranked 408th in the fortune 500 list, Eastman Kodak has also had it rough in the past few years a trend which is expected to continue. In the last financial year, the company suffered losses in excess of $764 million which made the company file for bankruptcy. Knowing how the bankruptcy road goes, the company will definitely take more than a year to get back its footing back.
13. Liberty Global: Lost $773 Million in 2011
Although Liberty Global’s future looks bright, the company hasn’t been able to avoid losses just yet. In 2011, the company suffered a loss of $773 million despite being engaged in one of the most ambitious acquisition sprees in the cable industry. The company is yet to show signs of reaping the benefits of its past years undertakings which is why the company finds itself on this list.
12. Nationwide: Loss of $793 Million in Past Year
Nationwide is 12th place in this list with a record loss of $793 million in the past financial year. The outlook for Nationwide looks cloudy given the fact that the company had to pay over $2.3 billion in claims (weather related) last year caused by hurricane Irene and many tornadoes that caused serious damage in many areas in the South. Considering the company hasn’t been spared in previous years, the future doesn’t look rosy.
11. Avaya: Loss of $863 Million in Past Year
Although Avaya isn’t making losses surpassing the billion dollar mark, the company is really struggling to co-exist in the communications industry which is very competitive. In the past financial year, the company recorded $863 million in losses on the back of week IT spending and costs stemming from the companies 2009 Nortel Networks acquisition and ongoing restructuring. It will definitely take a few years before this fortune 500 company returns to profitability.
10. Supervalu: Loss of $1.5 Billion in Past Year
Supervalu is the biggest grocery store operator in the U.S. The company is ranked number 75 in the fortune 500 list. Supervalu has been suffering for the past few years as a result of aggressive price cutting and tough competition. This has forced the company to lay off workers as well as close many stores. In the last financial year, the company suffered a record loss of $1.5 billion. A complete turnaround will take a few years.
9. Dean Foods: Lost $1.6 Billion in 2011
Dean Foods is undoubtedly a giant in the U.S. dairy industry. The company is ranked 207 in the fortune 500 list with sales exceeding its closest competitor by a record five times. This kind of monopoly automatically translated to profits according to many people however this isn’t the case. In 2011, the company suffered a record loss of $1.6 billion because of writing down its milk processing division. This was as a result of harsh industry conditions. Since then, the company hasn’t been able to weather the storm a trend which is expected to continue in the next few years.
8. Sunoco: Loss of $1.7 Billion in Past Year
Number 61 on the fortune 500 list of companies is Sunoco. The company has been in business for over a century. You would therefore be tempted to think that the company has perfected its business making it immune to losses. This isn’t the case for the oil refining giant. The company is slowly being pushed out of business having suffered a record loss of $1.7 billion in the last financial year. Given the fact that the company is restructuring its business to concentrate on oil retail and logistics business, the company is expected to continue suffering losses in the next few years.
7. Energy Future Holdings: Loss of $1.9 Billion in Past Year
The problems of Energy Future Holdings started in 2008 after the company’s buyout deal valued an excess of $45 billion. Natural gas prices started to plummet below break-even points forcing investors to start exiting slowly. In the financial year ending 2012, Energy Future Holdings suffered a record loss of $1.9 billion. This was a result of accumulating debt over the years amounting to $35 billion. Currently, the company has a CC credit rating. The future of the company surely looks dull.
6. AMR Corporation: Lost $2 Billion in 2011
Number 6 on this list is the AMR Corporation. This airline industry giant has been facing financial challenges for the past few years narrowly escaping bankruptcy. In 2011, things took a turn for the worst recently forcing the company to file for chapter 11 bankruptcy. AMR suffered a record loss of $ 2 billion as a result of high fuel costs and economic uncertainty. This kick started a major reorganization process which is expected to halt the company’s profitability for the next few years.
5. Anadarko Petroleum: Lost $2.6 Billion in 2011
Anadarko Petroleum makes it to this list because of recording losses consecutively from 2010 to date and achieving paradoxical victory back in 2011. The fortune 500 company posted record revenues in 2011 but still suffered a record loss of $2.6 billion. This was as a result of a $4 billion claims settlement for the oil giant BP. The company also continues to suffer other challenges i.e. a $5 billion acquisition lawsuit clouding the company’s profitability for the next few years.
4. Sprint Nextel: Lost $2.9 Billion in 2011
In 2011, Sprint Nextel was the 3rd biggest mobile phone service provider in the U.S. You would think this translates to profits however this wasn’t the case. In 2011, Sprint Nextel made a record loss of $2.9 billion. Sprint Nextel has been making losses annually for over five years now. Considering the company is number 90 in the fortune 500 list of companies, this is below average performance which shows huge revenue streams don’t always translate to profits.
3. Sears Holdings: Loss of $3.1 Billion in Past Year
Sears Holdings has also been performing badly in the past few years. For instance, the last financial year ending 2012, the company suffered a loss of $3.1 billion. This was the worst ever performance since the company merged with Kmart in 2005. Considering the company is ranked 65 in the fortune 500 list, the retail giant is doing very poorly a trend which is expected to continue considering the company is expected to close over 200 stores this year alone.
2. Freddie Mac: Loss of $5.3 Billion in Past Year
Number two on the list of biggest losers in the fortune 500 list of companies is Freddie Mac. This company is ranked number 25 on the fortune 500 list. The company however suffers the same predicament as Fannie Mae considering both companies are in the mortgage business which has suffered greatly for the past few years now. Having suffered a loss of $5.3 billion in the past financial year, Freddie Mac surely deserves to be in the top five of this list.
1. Fannie Mae: Lost $16.9 Billion in 2011
Number one in this list of the biggest losers in the fortune 500 list of companies is Fannie Mae. This company has been losing big money for three years consecutively since 2009. In 2011, Fannie Mae made a record loss of $16.9 billion. Considering the company is ranked number 8 in the Fortune 500 list, such a loss is unacceptably high. Also, it has been four years since Fannie Mae received government support. How this company is still making huge losses is anyone’s guess.
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