Full Version: Fortune 1000

Fortune 1000

Wal-Mart Stores
Rank: 1 (Previous rank: 1)
Compare tool: Wal-Mart Stores vs. Top 10
CEO: H. Lee Scott Jr.
Address: 702 S.W. Eighth St.
Bentonville, AR 72716
Phone: 479-273-4000
Website: www.walmartstores.com
A facelift and even lower prices kept the world's largest retailer afloat in a troubled economy.

Staring down the barrel of brutal fourth-quarter retail forecasts, CEO Lee Scott dramatically cut prices on 15,000 items - including popular toys and electronics - by 20% more than usual to lure holiday shoppers. That rocked the industry, pressuring other retailers to squeeze already tight margins.

The tactic worked: Wal-Mart grossed $100 billion, breaking its fourth-quarter sales record, and soundly beat Target in same-store holiday sales for the first time in nearly a decade. --Christopher Tkaczyk and David Goldman

Exxon Mobil
Rank: 2 (Previous rank: 2)
Compare tool: Exxon Mobil vs. Top 10
CEO: Rex W. Tillerson
Address: 5959 Las Colinas Blvd.
Irving, TX 75039
Phone: 972-444-1000
Website: www.exxonmobil.com
Exxon Mobil is the oil behemoth everybody loves to hate - except its shareholders, of course. It's the most profitable company on the Fortune 500 for the fifth year in a row, raking in a record-breaking $40 billion in 2007 earnings.

But the company's near single-track focus on fossil fuels - plus its massive profit amid record gas prices - has drawn criticism from the public. An Exxon executive was recently grilled on Capitol Hill, with legislators demanding to know why the company hasn't invested as much in renewables as some of its peers.

3. Chevron
Rank: 3 (Previous rank: 4)
Compare tool: Chevron vs. Top 10
CEO: David J. O'Reilly
Address: 6001 Bollinger Canyon Rd.
San Ramon, CA 94583
Phone: 925-842-1000
Website: www.chevron.com
The second-largest U.S. oil company posted its highest annual profit ever, with 2007 income of $18.6 billion.

Still, like the rest of the industry, its earnings from rising crude prices were pinched by increased refining costs. The company has also invested in energy alternatives, including geothermal and biodiesel fuels, and signed contracts to develop oil fields in China.

This past February, it was added back into the Dow Jones industrial average for the third time in the history of the index.

4. General Motors
Rank: 4 (Previous rank: 3)
Compare tool: General Motors vs. Top 10
CEO: G. Richard Wagoner Jr.
Address: 300 Renaissance Center
Detroit, MI 48265
Phone: 313-556-5000
Website: www.gm.com
GM's recovery is slow going. High gasoline prices, weak auto sales, layoffs, buyouts and a looming recession helped shrink sales 12% and led to a $39 billion loss.

Still, GM remains the world's largest automaker, though it very nearly lost its top position in global car sales - which it has held for 76 years - to Japanese rival Toyota.

A two-day nationwide autoworkers strike (the company's first since 1970) resulted in a cost-saving labor deal that could make the company more competitive with nonunion rivals. It also created a trust fund for retiree health benefits, the first of its kind for autoworkers.

5. ConocoPhillips

Rank: 5 (Previous rank: 5)
Compare tool: ConocoPhillips vs. Top 10
CEO: James J. Mulva
Address: 600 N. Dairy Ashford Rd.
Houston, TX 77079
Phone: 281-293-1000
Website: www.conocophillips.com
Not every oil giant was fat and happy last year. In June, the company was forced to pull out of oil-rich Venezuela following an impasse with President Hugo Chavez. The company estimated that the pullout cost it $4.5 billion and, as a result, ConocoPhillips' earnings plunged 23.5% to $11.8 billion.

But it wasn't all bad news in 2007: ConocoPhillips became the first U.S. oil producer to support mandatory national regulation of greenhouse gas emissions. It recently announced plans to join forces with BP to construct a $30 billion natural gas pipeline in Alaska.

6. General Electric

Rank: 6 (Previous rank: 6)
Compare tool: General Electric vs. Top 10
CEO: Jeffrey R. Immelt
Address: 3135 Easton Turnpike
Fairfield, CT 06828
Phone: 203-373-2211
Website: www.ge.com
The conglomerate had a tough year. First, its financial services and mortgage units were hit by the credit crisis, and then its NBC Universal entertainment unit was slammed by the Writers Guild strike.

But year-end earnings were buoyed by big-ticket items such as locomotives, jet engines and water treatment plants - enough to make GE the second-most profitable corporation in the Fortune 500.

7. Ford Motor

Rank: 7 (Previous rank: 7)
Compare tool: Ford Motor vs. Top 10
CEO: Alan R. Mulally
Address: 1 American Rd.
Dearborn, MI 48126
Phone: 313-322-3000
Website: www.ford.com
Not only were Ford's U.S. auto sales down by nearly 12% for the year, but the manufacturer was surpassed as the nation's No. 2 automaker by Japanese rival Toyota.

It was hit by high gas prices, which put the brakes on demand for its SUVs and pickups, and the cost of cutting its North American workforce by about 33,000 people. Continued losses at some overseas brands prompted the company to put Land Rover, Jaguar and Aston Martin on the block.

Ford lost $2.7 billion for the year and remains a work in progress - it is slashing capacity to meet reduced demand and offering buyouts to its entire U.S. hourly workforce of 54,000.

8. Citigroup

Rank: 8 (Previous rank: 8)
Compare tool: Citigroup vs. Top 10
CEO: Vikram S. Pandit
Address: 399 Park Ave.
New York, NY 10043
Phone: 212-559-1000
Website: www.citigroup.com
Risky subprime loans delivered a huge blow to the financial services giant. The mortgage meltdown forced Citigroup to post the worst fourth-quarter loss in its 196-year history: $10 billion. The company also had to write down $18.1 billion on mortgage-backed securities and cut its dividend by 41%. Chief Executive Charles Prince was shown the door, and the company's shares fell 47%, making it the worst-performing Dow Jones industrial average component in 2007.

To solidify its balance sheet, Citi has raised about $20 billion since November from investors in Abu Dhabi, Singapore and New Jersey.

9. Bank of America Corp.

Rank: 9 (Previous rank: 9)
Compare tool: Bank of America Corp. vs. Top 10
CEO: Kenneth D. Lewis
Address: 100 N. Tryon St.
Charlotte, NC 28255
Phone: 704-386-5681
Website: www.bankofamerica.com
Bank of America wasn't hit quite as hard by the credit crisis as other financial institutions in 2007. But it did have the misfortune of taking a $2 billion stake in Countrywide, the nation's biggest subprime lender, in August.

It also took more than $5.5 billion in writedowns on mortgage-backed securities in the second half of the year.

This past January, CEO Ken Lewis agreed to buy Countrywide for $4 billion - although as the extent of Countrywide's woes becomes more apparent, it's not clear if the deal will be completed. If the companies do merge, they will control 25% of the U.S. loan market.

10. AT&T

Rank: 10 (Previous rank: 27)
Compare tool: AT&T vs. Top 10
CEO: Randall L. Stephenson
Address: 175 E. Houston St.
San Antonio, TX 78205
Phone: 210-821-4105
Website: www.att.com
The new AT&T, which jumps 17 spots on the Fortune 500, is the phoenix reborn from four different telecoms: the old AT&T, Cingular, BellSouth and SBC. That collective customer base sent sales skyrocketing 88%.

The new Ma Bell scored some high-tech street cred when it became the exclusive carrier offering Apple's iPhone. That deal helped it post a record quarterly increase of 2.7 million wireless subscribers in 2007's fourth quarter.

11. Berkshire Hathaway

Rank: 11 (Previous rank: 12)
Compare tool: Berkshire Hathaway vs. Top 10
CEO: Warren E. Buffett
Address: 1440 Kiewit Plaza
Omaha, NE 68131
Phone: 402-346-1400
Website: www.berkshirehathaway.com
Billionaire investor Warren Buffett's stable of more than 70 companies had a highly profitable year, posting returns double that of the benchmark S&P 500. Two of Buffett's biggest 2007 acquisitions: a $5 billion stake in Burlington Northern and a $1.6 billion piece of Sanofi-Aventis.

Still, in his annual letter to shareholders, Buffett declared that the "party is over" in the insurance business, and told shareholders to expect profit margins to "fall significantly in 2008."

12. J.P. Morgan Chase & Co.

Rank: 12 (Previous rank: 11)
Compare tool: J.P. Morgan Chase & Co. vs. Top 10
CEO: James Dimon
Address: 270 Park Ave.
New York, NY 10017
Phone: 212-270-6000
Website: www.jpmorganchase.com
CEO Jamie Dimon helped the firm weather the mortgage crisis better than its Wall Street counterparts by mostly steering clear of collateralized debt obligations, the securities that have otherwise slammed the financial industry. The bank's solid footing - along with a $29 billion guarantee from the Federal Reserve - helped it bail out Bear Stearns in a controversial deal this March.

Provisions for loan losses in its credit division took a toll on J.P. Morgan's results, but the bank still had the fattest profit of any of the big Wall Street firms last year.

13. American International Group

Rank: 13 (Previous rank: 10)
Compare tool: American International Group vs. Top 10
CEO: Martin J. Sullivan
Address: 70 Pine St.
New York, NY 10270
Phone: 212-770-7000
Website: www.aigcorporate.com
The world's largest insurance group was forced to take an $11 billion writedown last year on its weakened credit derivatives portfolio, resulting in a fourth-quarter loss of $5.3 billion - its biggest ever.

Adding to its problems: A legal battle continues against former CEO Hank Greenberg and six other former executives, who are accused of misappropriating $20 billion in company stock.

For the year, the company's earnings plunged 56% to $6.2 billion.

14. Hewlett-Packard

Rank: 14 (Previous rank: 14)
Compare tool: Hewlett-Packard vs. Top 10
CEO: Mark V. Hurd
Address: 3000 Hanover St.
Palo Alto, CA 94304
Phone: 650-857-1501
Website: www.hp.com
The turnaround of HP under Chief Executive Mark Hurd is in full swing. Not only did the tech giant outpace competitor Dell in computer sales, it also outsold Sun Microsystems and IBM in the server market.

The fact that 67% of its sales come from abroad has helped HP weather the U.S. economic slump and post a healthy 2007 profit.

One hiccup: Its printer division continues to sag.

15. International Business Machines

Rank: 15 (Previous rank: 15)
Compare tool: International Business Machines vs. Top 10
CEO: Samuel J. Palmisano
Address: 1 New Orchard Rd.
Armonk, NY 10504
Phone: 914-499-1900
Website: www.ibm.com
Capitalizing on the "International" part of the company's name, IBM's focus on overseas business helped boost 2007 numbers. IBM generated 63% of its revenue from overseas sales last year, helping it overcome U.S. economic woes.

Adding to lucrative businesses in China and India, the tech giant announced in December that it would build a research and innovation center in Johannesburg with the intention of tapping into the quickly developing market on the African continent.

16. Valero Energy

Rank: 16 (Previous rank: 16)
Compare tool: Valero Energy vs. Top 10
CEO: William R. Klesse
Address: 1 Valero Way
San Antonio, TX 78249
Phone: 210-345-2000
Website: www.valero.com
The independent oil refiner, which also owns over 5,000 gas stations, has been one of the fastest-growing companies in the U.S. in recent years. So it comes as a surprise to see a dip in profit.

The reason? Oil refiners saw margins squeezed last year, as crude prices spiked while the rise in gas prices didn't keep pace. Valero also had some unplanned refinery outages, and is now selling off underperforming facilities.

17. Verizon Communications

Rank: 17 (Previous rank: 13)
Compare tool: Verizon Communications vs. Top 10
CEO: Ivan G. Seidenberg
Address: 140 West St.
New York, NY 10007
Phone: 212-395-1000
Website: www.verizon.com
The second-largest telecom in the United States has relied on its fast-growing wireless business to offset its quickly disintegrating core home phone business, which saw subscribers shrink by 11% last year.

The biggest threat comes from cable companies offering bundles of TV, phone and Internet service. Verizon created its own fiber-optic TV service in 2005 - the "triple play" is offered in select markets and has about 1 million subscribers, far fewer than rivals.

One victory: In April, Verizon won an FCC auction for wireless spectrum to build what could be the largest mobile phone network within two years, potentially besting AT&T.

18. McKesson

Rank: 18 (Previous rank: 18)
Compare tool: McKesson vs. Top 10
CEO: John H. Hammergren
Address: 1 Post St.
San Francisco, CA 94104
Phone: 415-983-8300
Website: www.mckesson.com
The health care services provider is also a pharmaceutical wholesaler, delivering more than $1 billion worth of medicines to pharmacies and hospitals each week - about one-third of all medications consumed in the United States. The company, which counts Wal-Mart and the U.S. military as big customers, saw profit shoot up 21.6%, thanks to stellar drug sales.

Its smaller businesses include distribution of medical supplies - from rubber gloves to surgical lasers - and health information technology solutions.

19. Cardinal Health

Rank: 19 (Previous rank: 19)
Compare tool: Cardinal Health vs. Top 10
CEO: R. Kerry Clark
Address: 7000 Cardinal Place
Dublin, OH 43017
Phone: 614-757-5000
Website: www.cardinal.com
The drug wholesaler and medical supply manufacturer sold off its pharmaceutical technologies and services division last April to the Blackstone Group for $3.3 billion, which helped to nearly double annual profit.

Cardinal is the second-largest drug distributor in the United States, after McKesson, and is the largest provider of specialized nuclear medications used to treat cancer and heart disease.

In July, the company reached a settlement with the SEC that concluded an investigation into its financial reporting from 2000 to 2004, resulting in a $35 million fine.

20. Goldman Sachs Group

Rank: 20 (Previous rank: 24)
Compare tool: Goldman Sachs Group vs. Top 10
CEO: Lloyd C. Blankfein
Address: 85 Broad St.
New York, NY 10004
Phone: 212-902-1000
Website: www.gs.com
The Wall Street powerhouse seems to have beaten the credit crunch, for the most part. It posted record sales and profit, thanks to its booming trading business - and the fact that it mostly stayed away from the mortgage-backed securities that got its counterparts in trouble.

The firm did take some small writedowns on its mortgage holdings and, like the rest of Wall Street, is facing lower returns in a weakened economy. Still, it did well enough to award employees record bonuses totaling $20.2 billion, up 23% from 2006.

21. Morgan Stanley

Rank: 21 (Previous rank: 20)
Compare tool: Morgan Stanley vs. Top 10
CEO: John J. Mack
Address: 1585 Broadway
New York, NY 10036
Phone: 212-761-4000
Website: www.morganstanley.com
The second-largest investment bank became one of the hardest-hit firms in the mortgage crisis. In the fourth quarter, it took a $9.4 billion writedown on its mortgage-related securities and posted its first-ever quarterly loss of $3.6 billion.

That led to the departure of Co-President Zoe Cruz, a rising star who had been viewed as CEO John Mack's successor. For his part, Mack eschewed his annual bonus, pocketing only $1.5 million in salary. Thanks to heavy trading volume earlier in the year, the company ended 2007 in the black, with a $3.2 billion profit.

22. Home Depot

Rank: 22 (Previous rank: 17)
Compare tool: Home Depot vs. Top 10
CEO: Francis S. Blake
Address: 2455 Paces Ferry Rd. N.W.
Atlanta, GA 30339
Phone: 770-433-8211
Website: www.homedepot.com
The home improvement retailer was hit with a double whammy last year: a housing market downturn and customer service problems that have plagued the company for years.

Also on the company's to-do list: preventing patrons from fleeing to competitor Lowe's, which has been chipping away at HD's lead. In-store makeovers were a start, and the company also has been seeking skilled workers to replace inexperienced part-timers who'd previously been hired to help cut costs.

New CEO Frank Blake took the helm early last year, but sales still slid nearly 7%.

23. Procter & Gamble

Rank: 23 (Previous rank: 25)
Compare tool: Procter & Gamble vs. Top 10
CEO: Alan G. Lafley
Address: 1 Procter & Gamble Plaza
Cincinnati, OH 45202
Phone: 513-983-1100
Website: www.pg.com
The world's largest maker and distributor of consumer products - such as Crest, Gillette, Pampers and Pringles - has maintained steady growth. Profit climbed 19% last year, thanks to streamlined operations and a renewed focus on productivity.

In July, Dunkin' Donuts signed P&G to make and distribute its popular coffee to 40,000 retail and grocery outlets. Later this year, P&G will add Frederic Fekkai hair care products and spin off household coffee brand Folgers.

24. CVS Caremark

Rank: 24 (Previous rank: 51)
Compare tool: CVS Caremark vs. Top 10
CEO: Thomas M. Ryan
Address: 1 CVS Dr.
Woonsocket, RI 02895
Phone: 401-765-1500
Website: www.cvs.com
The company, formed last year by the merger of the nation's leading pharmacy retailer CVS and benefits provider Caremark, now hopes to redefine health care in America via its MinuteClinic subsidiary. One of several new retail health care outfits to spring up in recent years, MinuteClinic's 500 locations provide affordable health care in retail outlets, such as shopping malls, with on-call nurse practitioners available 12 hours a day.

25. UnitedHealth Group

Rank: 25 (Previous rank: 21)
Compare tool: UnitedHealth Group vs. Top 10
CEO: Stephen J. Hemsley
Address: 9900 Bren Rd. E.
Minnetonka, MN 55343
Phone: 952-936-1300
Website: www.unitedhealthgroup.com
A series of big acquisitions have proved a bitter pill to swallow for some of the insurer's plan members, who have voiced complaints about denied claims, poor service and rising costs.

The company is currently facing a potential $1.3 billion fine for allegedly failing to pay claims at its PacifiCare unit. In December, ex-CEO William McGuire agreed to return $618 million in executive pay to settle claims brought by shareholders and the SEC over backdated stock options, bringing a massive scandal to a close. The company was forced to restate its earnings by $1.5 billion and announced a $55 million settlement with the IRS.

26. Kroger

Rank: 26 (Previous rank: 26)
Compare tool: Kroger vs. Top 10
CEO: David B. Dillon
Address: 1014 Vine St.
Cincinnati, OH 45202
Phone: 513-762-4000
Website: www.kroger.com
Facing soaring food costs, as well as fierce competition from rivals such as Wal-Mart, Safeway and Whole Foods, the largest nationwide grocery chain initiated a more targeted marketing strategy using incentives, such as coupons based on shoppers' buying habits. It also continues to invest heavily in its line of private-label foods. The grocer's sales increased 6.2%, with a 5.9% rise in profit.

27. Boeing

Rank: 27 (Previous rank: 28)
Compare tool: Boeing vs. Top 10
CEO: W. James McNerney Jr.
Address: 100 N. Riverside Plaza
Chicago, IL 60606
Phone: 312-544-2000
Website: www.boeing.com
The launch of the eagerly awaited 787 Dreamliner still hasn't happened, but the aerospace manufacturer is flying high. Profit rose 83.9%, thanks to new plane orders, commercial plane deliveries, and contracts with the military and government, including three successful space shuttle launches in 2007.

In March, the company lost a tanker deal with the U.S. Navy to a group that includes Airbus-parent EADS, the first time the Pentagon has awarded a major aerospace contract to an overseas company.

28. AmerisourceBergen

Rank: 28 (Previous rank: 29)
Compare tool: AmerisourceBergen vs. Top 10
CEO: R. David Yost
Address: 1300 Morris Dr.
Chesterbrook, PA 19087
Phone: 610-727-7000
Website: www.amerisourcebergen.com
The pharmaceutical wholesaler's profit was stagnant, growing less than 1% to $469 million, after it united its institutional pharmacy business with that of Kindred Healthcare to form the publicly traded PharMerica in July. In October, the company acquired Bellco Health, a privately held distributor of branded and generic drugs, for $190 million.

29. Costco Wholesale

Rank: 29 (Previous rank: 32)
Compare tool: Costco Wholesale vs. Top 10
CEO: James D. Sinegal
Address: 999 Lake Dr.
Issaquah, WA 98027
Phone: 425-313-8100
Website: www.costco.com
Like Wal-Mart (which operates rival warehouse retailer Sam's Club), Costco benefited from a lax economy as shoppers sought bargains for everyday items, such as groceries and household goods. Revenue rose 7.1% and inventory turnover hit a record, although profit slid 1.9% due to the costs of a new return policy and reimbursing workers for tax losses on stock options. This past February, the company received government approval to sell its own brand of beer.

30. Merrill Lynch

Rank: 30 (Previous rank: 22)
Compare tool: Merrill Lynch vs. Top 10
CEO: John A. Thain
Address: 4 World Financial Center
New York, NY 10080
Phone: 212-449-1000
Website: www.ml.com
Big drama unfolded at the Wall Street firm last year. Under CEO Stanley O'Neal, it had invested heavily in collateralized debt obligations backed by subprime mortgages. Following a third-quarter writedown of $8.4 billion for its mortgage losses, O'Neal floated the idea of a merger with the executives of Wachovia - except he didn't consult Merrill's board, a major breach of corporate conduct.

In October, O'Neal was ousted and later replaced by John Thain, former chief executive of the NYSE. With a fourth-quarter writedown of $14.6 billion and its worst-ever quarterly loss, Merrill ended the year in the red by $7.7 billion.

31. Target

Rank: 31 (Previous rank: 33)
Compare tool: Target vs. Top 10
CEO: Gregg Steinhafel
Address: 1000 Nicollet Mall
Minneapolis, MN 55403
Phone: 612-304-6073
Website: www.target.com
First, a slow retail year saw shoppers defect to cheaper competitors such as Wal-Mart, and then Isaac Mizrahi departed for Liz Claiborne. Now the discount retailer known for trendy design is going green. Starting in October, new Target stores are expected to carry more natural and organic beauty items, as well as a larger selection of consumer electronics and groceries. The company said in March that it's in talks with an unnamed investment partner to sell half its credit card receivables for about $4 billion.

32. State Farm Insurance Cos.

Rank: 32 (Previous rank: 31)
Compare tool: State Farm Insurance Cos. vs. Top 10
CEO: Edward B. Rust Jr.
Address: 1 State Farm Plaza
Bloomington, IL 61710
Phone: 309-766-2311
Website: www.statefarm.com
Homeowners in Florida are left stranded if they're looking for property coverage from the nation's largest home insurer. This past February, State Farm caused a stir when it announced it would stop writing new homeowner policies in Florida due to a state law that limits the rates insurance companies can charge for property insurance. Revenue losses due to hurricane settlements have forced the company to abandon 50,000 policies along the state's coast. The company also contended with California wildfire claims and the housing downturn, and annual sales grew just 1.8%.

33. WellPoint

Rank: 33 (Previous rank: 35)
Compare tool: WellPoint vs. Top 10
CEO: Angela F. Braly
Address: 120 Monument Circle
Indianapolis, IN 46204
Phone: 317-532-6000
Website: www.wellpoint.com
Additional memberships, administrative cost-cutting and a growing pharmacy mail-order business helped profit climb 8.1% at this health benefits company that operates the Blue Cross Blue Shield health plans. But medical costs continued to climb, ultimately affecting the bottom line. The insurer plans to cancel an expensive Medicaid contract in Ohio by the end of the year.

34. Dell

Rank: 34 (Previous rank: 34)
Compare tool: Dell vs. Top 10
CEO: Michael S. Dell
Address: 1 Dell Way
Round Rock, TX 78682
Phone: 512-338-4400
Website: www.dell.com
After losing PC market share to Apple and Hewlett-Packard in recent years, Dell finally embraced traditional sales and marketing tactics by partnering with major retail chains, including Wal-Mart and Staples. It was a big departure from the company's pioneering direct-sales approach, but sales rose 6% in 2007, and profit increased 14.1%.

This past January, the company announced it would close all 140 of its Dell Direct retail kiosks. This summer, the company is expected to enter the low-priced laptop market and compete with HP's $500 mini-notebook.

35. Johnson & Johnson

Rank: 35 (Previous rank: 36)
Compare tool: Johnson & Johnson vs. Top 10
CEO: William C. Weldon
Address: 1 Johnson & Johnson Plaza
New Brunswick, NJ 08933
Phone: 732-524-0400
Website: www.jnj.com
Last year, the maker of personal care products, branded pharmaceuticals and medical devices completed the integration of Pfizer Consumer Healthcare - a division of the pharma giant that includes Benadryl, Nicorette, Listerine and Sudafed - that it acquired in late 2006 for $16.6 billion.

Along with those over-the-counter brands, the company also assumed the rights to Zyrtec, a formerly prescription-only allergy medication that the FDA granted OTC status once the Pfizer patent expired. Armed with a new medicinal treasure chest, revenue grew 14% for the year.

36. Marathon Oil

Rank: 36 (Previous rank: 30)
Compare tool: Marathon Oil vs. Top 10
CEO: Clarence P. Cazalot Jr.
Address: 5555 San Felipe Rd.
Houston, TX 77056
Phone: 713-629-6600
Website: www.marathon.com
Production delays and rising refinery costs beset the oil refiner, whose revenue remained static while profit declined 24% as a result of narrowing margins. In October, it completed a $6.9 billion acquisition of oil and gas explorer Western Oil Sands, with the intention of tapping into its oil reserves in Alberta. In January, Marathon announced it would review its portfolio with the intention of selling off underperforming and non-strategic assets.

37. Lehman Brothers Holdings

Rank: 37 (Previous rank: 47)
Compare tool: Lehman Brothers Holdings vs. Top 10
CEO: Richard S. Fuld Jr.
Address: 745 Seventh Ave.
New York, NY 10019
Phone: 212-526-7000
Website: www.lehman.com
After the announcement that J.P. Morgan Chase would bail out Bear Stearns, Wall Street worried that Lehman, the nation's largest underwriter of mortgage-backed bonds - and its fourth-largest securities firm - would be banking's next disaster.

To dodge that bullet, Lehman raised capital by liquidating three funds worth $1 billion after their assets declined in value during the credit crisis. It also repackaged $2.8 billion of unsold debt into an investment vehicle it named "Freedom," then pledged some of those securities as collateral for a short-term loan from the Fed. Lehman recently raised $4 billion from a stock sale.

38. Wachovia Corp.

Rank: 38 (Previous rank: 46)
Compare tool: Wachovia Corp. vs. Top 10
CEO: G. Kennedy Thompson
Address: 1 Wachovia Center
Charlotte, NC 28288
Phone: 704-374-6565
Website: www.wachovia.com
The fourth-largest U.S. bank's $24 billion acquisition of Golden West in 2006 has proved to be an expensive gamble due to the risky adjustable rate mortgages it assumed as part of the deal, which now account for $120 billion of Wachovia's $170 billion mortgage portfolio.

Slow to acknowledge the extent of its problem, executives at Wachovia continue to deny the bank was at risk, but hedged its bet with other investments. In April, the company set aside $2.8 billion for anticipated loan losses and announced plans to raise $7 billion in new capital by selling stock. Last fall, it acquired brokerage firm A.G. Edwards, which now operates as Wachovia Securities, for $6.8 billion.

39. United Technologies

Rank: 39 (Previous rank: 42)
Compare tool: United Technologies vs. Top 10
CEO: Louis Chênevert
Address: 1 Financial Plaza
Hartford, CT 06103
Phone: 860-728-7000
Website: www.utc.com
In December, the maker of aerospace equipment, elevators and air conditioners was awarded a $1.5 billion contract by the Pentagon to build Black Hawk and Medevac helicopters. The company is also a supplier of aviation parts for the Boeing 787 Dreamliner.

Strength in overseas sales, which account for half of its total, helped drive revenue up 14.5% for the year, thanks to a weaker dollar. Profit rose 13.2% and beat expectations for the third year in a row. This past March, the company made a $2.63 billion takeover bid for ATM maker Diebold.

40. Walgreen

Rank: 40 (Previous rank: 44)
Compare tool: Walgreen vs. Top 10
CEO: Jeffrey A. Rein
Address: 200 Wilmot Rd.
Deerfield, IL 60015
Phone: 847-914-2500
Website: www.walgreens.com
The drugstore chain, which operates more than 6,200 stores nationwide, is expected to acquire two worksite health centers this year. The move is a bid to grow beyond retail into a health care services company, and to compete with rival CVS, which merged with Caremark last year. Walgreen is planning to add in-store Take Care clinics at 400 of its locations in 2008. Revenue grew 13.4% in 2007.