Big business in the Americas

Big business in the Americas

What do Apple, Hewlett-Packard and Google all have in common?

Answer: All three companies had lower profits in the third quarter of 2009 than Petrobras and Vale.

Petrobras is Brazil’s massive energy company; you might have heard of it. But unless you live in Brazil or track big companies, you likely have never heard of Vale – the Brazilian mining company.

But both companies quietly are shoveling in huge profits. A representation of sort of Brazil’s quick exit from the global economic meltdown.  

Economic consulting firm Economatica on Wednesday released a list of the most profitable companies in all the ‘Americas’ for the third quarter of 09 – and it’s interesting to scan.

Here it is:

1. Exxon Mobil – USA - $4.7 billion
2. Petrobras – Brazil – $4.1 billion
3. Chevron Texaco – USA – $3.8 billion
4. JL Morgan Chase – USA – $3.58 billion
5. Microsoft Corp – USA – $3.57 billion
6. Wal Mart – USA – $3.44 billion
7. Merck & Co – USA – $3.42 billion
8. Johnson&Johnson – USA – $3.34 billion
9. Proctor & Gamble – USA – $3.30 billion
10. AT&T – USA – $3.27 billion
11. Berkshire Hathaway – USA – $3.23 billion
12. Wells Fargo – USA – $3.23 billion
13. Intl Business Machines – USA – $3.21 billion
14. Goldman Sachs – USA – $3.18 billion
15. Pfizer Inc – USA – $2.87 billion
16. General Electric – USA – $2.49 billion
17. Ambac Financial Group – USA – $2.18 billion
18. Coca Cola – USA – $1.89 billion
19. Intel – USA – $1.85 billion
20. Phillip Morris Intl – USA – $1.79 billion
21. Pepsico Inc – USA – $1.71 billion
22. Vale – Brazil – $1.68 billion
23. Apple – USA – $1.66 billion
24. Hewlett-Packard – USA – $1.64 billion
25. Google – USA – $1.63 billion

Source: Economatica

(One caveat: Economatica didn’t include Canada in their research)

I don’t want to make too much of these numbers. But the growth of Petrobras and Vale does strike me as remarkable. They used to be perceived as the developing country giants. Now, they are simply the giants. Period. Anyone who looks at this list can't possible say otherwise.

The fact that Petrobras was the second most profitable company in that quarter, says a lot about the company and its global stature and where Brazil stands right now in the world. Same goes for lesser-known Vale.

Everyone in Brazil knows both companies very well. They are household names. Petrobras is not seen as a company for many Brazilians. It's seen simply as part of Brazil's identity. And it's certainly not breaking news in Brazil that both Petrobras and Vale companies are very wealthy.

But outside Brazil, I suspect it's a little different. I would venture to guess if you were to pick out an “average” person on the streets of Delhi, Dallas or Dubrovnik and asked them to list the most profitable companies in the Americas, global names like Google, Apple and Chevron might spill right off their tongues. But Petrobras? Vale? Probably not.

As the Economist magazine recently screamed in a succinct front-cover headline, “Brazil takes off”.

Yes it has. And so has Petrobras and Vale. Only, few people outside Brazil probably ever knew to what degree.