STUTTGART (dpa-AFX) - The largest corporations from the US and Asia outperformed Europe's top companies in terms of revenue and profit last year. This is shown by a study in which the auditing and consulting firm EY analyzed the balance sheets of the 1,000 companies with the highest sales on the stock exchanges worldwide. The top companies from the United States increased their sales by an average of 4.5 percent in 2024, while those from Asia grew by 3.2 percent. Europe's large companies suffered a decline of 1.1 percent.
The gap in profits is even more pronounced: according to the study, Asian corporations increased their operating income by almost a fifth (19.5 percent), while companies from the US increased theirs by 8.2 percent. In Europe, the profits of the top players fell by an average of 6.5 percent. German corporations performed particularly poorly: their sales declined by 3.1 percent and profits fell by 8.5 percent.
The group of the 1,000 stock exchange companies with the highest sales is dominated by the US, which accounts for 317 companies. China (137) and Japan (110) follow. Germany ranks fourth with 43 corporations.
EY expert: "The situation is serious"
According to EY expert Jan Brorhilker, Europe's top companies are coming under increasing pressure in global competition – not least due to weakening industrial sectors, geopolitical tensions, and customs duties. "The situation is really serious and is currently coming to a head: while the top US companies have recently grown strongly and increased their profits, European companies are increasingly finding themselves on the defensive," he said.
Europe's particular strength in the industrial sector is currently proving to be a major challenge. This is because traditional industries such as the automotive sector are undergoing profound change. In this complex situation, the chaotic US customs policy comes at a very inopportune moment. It is leading to further financial burdens and enormous uncertainty.
Digital supremacy: Europe is lagging behind
At the same time, US tech companies dominate. None of the ten most profitable listed companies in the world are from Europe. Seven, on the other hand, are from the US, including Apple, Google's parent company Alphabet, software giant Microsoft, and chip manufacturer Nvidia. Europe has little to counter this market power, Brorhilker said. Only very few European companies are playing in the top league in the technology sector.
This weak position is proving to be an additional stumbling block: "While industrial companies are suffering massively from tariffs, trade restrictions and disrupted supply chains, digital corporations are posting record profits and can invest billions in innovation," said Brorhilker.
No European company in the top 10 in terms of profits
The stock market company with the world's largest profit was the oil company Saudi Aramco. The Saudis made an operating profit of around US$191 billion. The most profitable European company was the oil and gas group Shell. The British company ranked 13th. The first German company in the global profit ranking was Deutsche Telekom (19th place) with a good €26 billion.
The stock exchange companies with the highest turnover in 2024 were the retail giants Walmart and Amazon, as well as Saudi Aramco. The highest-ranked German companies in terms of turnover were the car manufacturers Volkswagen (9), Mercedes-Benz (35) and BMW (36), as well as Deutsche Telekom (50)./jwe/DP/zb
