The Biggest Abroad

FORTUNE'S 500, an annual ranking of the largest U.S. industrial corporations, has long been a kind of Burke's Peerage of business. Less widely known is FORTUNE'S listing of the top 200 foreign industries. The results of the overseas survey, as published in the magazine's current issue, will come as an eye opener to most U.S. businessmen.

For the first time in three years, foreign companies outperformed the 500 leading U.S. firms in the growth rate of sales. The combined sales of the 200 were up 8.3% in 1967, down from the previous year's 9.5% but still ahead of the 500 U.S. companies, whose sales increase as a group was 7.9%. The profit picture was even more startling. Earnings of the 200 went up by 6.7%, compared with 1966's paltry 0.7% increase over 1965 and in sharp contrast with a 3.1% decrease in earnings for the U.S. 500.

Remaining at the top of the 200 are the joint British-Dutch companies, Royal Dutch/Shell ($8.4 billion in sales) and Unilever ($5.6 billion). British Petroleum ($3 billion) stayed in third place. Hit by a slump in domestic sales, Volkswagenwerk of Germany went from fourth to seventh place, giving up the No. 4 spot to Britain's Imperial Chemical Industries (sales: $2.69 billion v. Volkswagenwerk's $2.33).

Out in Front. The elite "billion-dollar club" of companies with annual sales of $1 billion or more was joined by six newcomers, now boasts a total membership of 38. Their combined sales of close to $69.9 billion represent 45% of the total for all 200 listed.

One of the most significant trends reflected in the latest foreign directory is the onrush of Japanese companies. In 1967 they were out in front with the biggest sales increases of all national groups. The 38 Japanese firms that appeared on both the 1966 and 1967 lists had a 23.7% growth in sales. Meanwhile, five additional Japanese firms made the grade, joining FORTUNE'S 200 for the first time. Japan's participation in the 200 group is now 43, second only to Britain's 53.

Leading the Japanese from the No. 12 slot was Hitachi Ltd., a manufacturer of many types of machinery, notably atomic power plants. With 1967 sales of $1.7 billion, Hitachi was up from last year's No. 18 place on the list. Nissan Motor Co., maker of Datsun cars, whose sales were $1.27 billion, shot up from 42nd to 25th place, followed by Toyota Motor Co. ($1.26 billion), which was up from 40th to 28th.

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