As the continent of the most powerful industrial powers, Europe is home to some of the biggest corporations in the world. Royal Dutch Shell is one such company based in the Netherlands. European companies have become global giants over the years, and some of them even have their headquarters in different countries. Listed below are the Top 10 Biggest Companies in Europe. They all have a lot to offer to customers, so it’s important to know about them!
The company has a global footprint and diversified portfolio of assets, resulting in higher returns on equity than the industry average. While it faces geopolitical risk and the ire of some Western politicians, Glencore has avoided serious trouble in the past. This company is listed on three stock exchanges in Europe: the London Stock Exchange, the Frankfurt Stock Exchange, and the Hamburger Wertpapiermarkt.
The company’s roots date back to 1926 and the Sudelektra AG infrastructure investment group was renamed Xstrata AG in 1999. Xstrata plc was created by floatation on the London Stock Exchange in 2002, at the same time as it bought $2.5 billion of coal assets from rival Glencore. The company employs over 70,000 people worldwide and operates in 20 countries. It reported a 31 percent drop in its first-half profits.
The company’s shares fell 10% on August 19 following its financial results. After a record high in early February, commodity prices have hit record lows. This is largely due to slow growth in China and emerging markets. Glencore stocks have slid since, however, amid concerns over the company’s debt. In spite of the high price, Glencore shares are cheap relative to other large companies.
While it is unknown whether the deal between Glencore and Xstrata will succeed, it is clear that the merger has the potential to create a giant. The combination of the two companies will create the world’s largest coal exporter. They also own vast reserves of nickel and copper in South America and central Asia. This deal will make Glencore Xstrata one of the 10 largest companies in Europe.
Royal Dutch Shell
One of the biggest companies in Europe is Shell. The oil and gas giant recently posted its biggest quarterly profit ever, reflecting high oil and natural gas prices and tight global energy markets. Shell also increased its dividend by 4 percent, its biggest increase in two years. However, the company’s fortunes are not over just yet. It will remain on the top 10 list of companies in Europe until 2029, after which it will be downgraded and relist.
The company was founded in 1892 by the Royal Dutch Petroleum Company. Kessler, who later became its president, founded the company in the Netherlands. The company was originally known as the Royal Dutch Company for Exploration of Petroleum Wells in the Netherlands. The company first established a pipeline in Sumatra in 1892 and began building storage facilities in the area by 1896. The company’s sales organization was headed by Hendrik W.A. Deterding.
One risk is the potential for a prolonged decline in oil prices. The company may see a significant drop in organic FCF if oil prices remain low. But the company also has ample liquidity and lower costs than the average company. This should allow the company to continue investing in growth assets and share buybacks. The company has ample cash and a solid balance sheet, so the company is well-positioned to weather the downturn.
As a premium manufacturer, Daimler has lost its competitive advantage in the mass-market vehicle sector. To make up for this, it is investing heavily in new technologies, such as powertrain electrification, alternative and autonomous mobility, and emissions targets. Despite this, Daimler’s balance sheet still looks healthy, as it has enough cash to keep the company afloat. This is good news for investors.
The company has broad geographical and business diversification. The company ranks first in the premium passenger-car segment with the MBC division, while it ranks second in North America, Japan, Brazil, and the UK in the heavy-truck segment. It also has leading positions in the global van and bus markets, although it faces some headwinds in these markets, including stringent emission regulations and regulatory investigations.
The automotive colossus of Germany is based at BMW headquarters, an historic monument in Munich. It has more than 110,350 employees worldwide, including the headquarters. It also makes motorcycles and armored vehicles. It is one of the “Big Three” in Germany. The company’s success has led to it making the list of Forbes Global 2000, where it ranked 50th with $101.1 billion in sales.
The German company began producing cars in 1926 and became known as Daimler-Benz. After merging with a rival company, Daimler-Benz engineers went on to design the classic “S” series Mercedes. The company also pioneered the use of diesel engines in passenger vehicles. Diesel Mercedes-Benz cars were introduced to the market in 1936. Daimler also owns the Mercedes-Benz bank.
The multinational food manufacturer Nestle SA has its headquarters in Vevey, Switzerland, and has factories in more than 80 countries. Its chief products include chocolate products, condensed milk, baby foods, instant coffees, soups, and ice cream. Nestle also produces pharmaceuticals and pharmaceutical ingredients. Its shares in several other companies are growing fast. The company is also diversifying into non-food areas, including premium water.
While many of the other food and beverage companies are attempting to reduce costs, Nestle has been successful in growing its health and science businesses. In addition to cutting costs, Nestle has also committed to investing billions of dollars in environmental initiatives. However, it faces some reputational risk. It recently divested the Nestle Skin Health line and its U.S. ice cream business, as younger consumers have become more concerned about the environment.
Despite the scandal surrounding the toxic melamine found in Nestle milk powders, the company has maintained its stance on the contamination. It has also sent 20 Swiss experts to five of its plants in China to examine the problem. Meanwhile, the company has been involved in several incidents of water pollution. A 1997 report found that Nestle exceeded water pollution levels in the United Kingdom over 2,152 times, with the situation much worse in China.
Alstom is one of the 10 biggest transportation companies in Europe, with orders of 83.4 billion euros at the end of the latest fiscal year. Its shares have lost nearly a fifth of their value this year as investors worry about inflation and the shortage of electronic components. Despite its recent struggles, Alstom still maintains a low debt ratio. Its major competitors have suffered as the COVID-19 lockdown in China has put pressure on their supply chains.
While Alstom was once known for building heavy gas turbines and electrical grids, it has since turned its focus to the railway industry. It has since sold off its power generation and transmission businesses to GE. That’s a sign that it’s focusing on its core rail business. While the company’s long-term business fundamentals are solid, investors should pay attention to its margins and revenue mix. Alstom should focus on signaling contracts and rolling stock/turnkey activities as entry points into higher-margin areas.
Founded in 1928, Alsthom began its journey in the rail industry with the merger of two companies: the Thomson-Houston Electric Company and the Compagnie Francaise pour l’exploitation des procedes Thomson-Houston. The company then acquired the French wind turbine manufacturer Ecotecnia and renamed it Alstom. The company adopted Alstom as its trading name and the French government’s EUR3.2 billion state-backed bailout in 2003. The company also diversified into shipbuilding in the early 2000s. The company also constructed the class 373 trains for Eurostar’s high-speed service.
Before the scandal broke, Siemens was a good company whose reputation was based on technological products, dependable services and activities in remote areas. It also won plenty of tenders and was known for developing high-quality products. In November 2006, the company was raided by police in Munich. The company quickly claimed innocence and blamed the events on a “small criminal gang.”
However, the company’s recent troubled history has not helped its financial outlook. In the wake of its recent CEO’s firing, Siemens has struggled with orders in Europe. Last month, the company announced that it would miss its full-year profit targets. The company has suffered in other markets as well. In Europe, segment sales fell 17% in 2017, with a 43% drop in Germany. With all this going on, the company has a long way to go before it can achieve its profitability goals.
The company is comprised of four main divisions, each with their own strengths and specialties. While the company is known for its power generation and distribution systems, its offerings also span the fields of energy and sustainable energy, infrastructure, and transportation. In 1991, Siemens installed the world’s first offshore wind power plant. Today, Siemens is a major player in both onshore and offshore wind power. It also manufactures laboratory diagnostic equipment, medical imaging equipment, and clinical information systems.