STERN STEWART PERFORMANCE 1000 RANKING FEATURED IN FORTUNE; WAL-MART IS 'AMERICA'S BEST WEALTH CREATOR'
NEW YORK, Dec. 8 /PRNewswire/ -- The fifth annual Stern Stewart Performance 1000 ranking was released today, with the largest 200 companies featured in the current issue (Dec. 27, 1993) of FORTUNE magazine as "America's Best Wealth Creators." For the second year, Wal-Mart topped the list as the No. 1 most value-adding company in America, creating more than $64 billion for shareholders. At the other end, IBM overtook GM this year in the No. 1,000 spot. IBM fell from No. 2 only five years ago, destroying nearly $24 billion of value in the process. The Stern Stewart Performance 1000 ranks the 1,000 largest public companies in the U.S. according to value added to shareholders' investments over time. The ranking uses two key measures to look at corporate performance: "MVA," or "Market Value Added," is the stock market's assessment of management's efficiency at allocating capital within a company to create value; "EVA(TM)," or "Economic Value Added," is the internal performance measurement tool that managers can use to drive MVA. The table that follows lists the top ten and bottom ten MVA companies and top five and bottom five industries of 58 industry groups. According to FORTUNE, "To most people, MVA is a new and sometimes startling way of looking at corporate performance. Yet perhaps its greatest value is that it focuses on business people in their oldest, most fundamental role: not primarily as managers or even as leaders, but as stewards of capital." Bennett Stewart, senior partner and creator of the ranking, concurs. He comments, "Through all the complexity and turmoil of business today, one management principle endures -- to maximize shareholder wealth. The Stern Stewart Performance 1000 shows investors how well companies are faring in meeting this most basic mission." He adds, "The MVA measure provides investors with a ready scorecard of corporate performance, and EVA gives management a tool to improve their standing in the wealth creation game. Both MVA and EVA should be of interest to shareholders and corporate executives alike." Stern Stewart & Co. is a New York-based corporate financial advisory firm that works with companies to implement its proprietary EVA framework for financial management and incentive compensation that focuses managers on creating value for shareholders. The complete 1,000-company listing of the 1993 Stern Stewart Performance 1000 is available from Deborah Cohen, director of marketing, at 212-261-0726. 1993 STERN STEWART PERFORMANCE 1000 A Guide to MVA and EVA(TM) BY COMPANY TOP TEN BOTTOM TEN Rank Rank 1 Wal-Mart 1000 IBM 2 Coca-Cola 999 General Motors 3 Philip Morris 998 Ford 4 General Electric 997 DEC 5 Merck & Co. 996 RJR Nabisco 6 Bristol-Myers Squibb 995 McDonnell Douglas 7 AT&T 994 Occidental Petroleum 8 Johnson & Johnson 993 Champion International 9 Procter & Gamble 992 Time Warner 10 PepsiCo 991 United Technologies BY INDUSTRY TOP FIVE BOTTOM FIVE Rank Rank 1 Drugs & Research 58 Cars & Trucks 2 Discount & Fashion 57 Computers & Retailing Peripherals 3 Food Processing 56 Aerospace 4 Beverages 55 Aluminum 5 Medical Products 54 Coal -0- 12/8/93 /CONTACT: Deborah A. Cohen of Stern Stewart, 212-261-0726/
CO: Stern Stewart & Co. ST: New York IN: FIN SU:
GK-MP -- NY038 -- 1721 12/08/93 11:27 EST
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|Date:||Dec 8, 1993|
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