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Feb. 18 (Bloomberg) -- Exxon Mobil Corp. overtook General Electric Co. as the world's biggest company by market value, underscoring the emergence of energy stocks as leaders amid surging oil prices.

Exxon Mobil, the largest publicly traded oil producer, was valued at $385.8 billion as of 2:30 p.m. in New York, according to data compiled by Bloomberg. The figure surpassed the $378.59 billion value of GE, whose 11 units include financial services, health care and the NBC television network.

``Exxon mirrors the importance of the energy industry,'' said Forrest Mervine, who helps manage $1.4 billion at Philadelphia Corp. in Philadelphia. ``That's going to be the case for a while until alternate sources of energy come along.''

The change in leadership took place after Exxon Mobil's shares rallied 16 percent this month, compared with GE's 0.9 percent decline. GE led in market value by $49 billion at the end of January.

Today, Exxon shares climbed $1.65 to $59.78, while GE fell 21 cents to $35.82 in New York Stock Exchange trading.

Energy shares are the Standard & Poor's 500 Index's best performers for the second straight year as crude-oil futures approach $50 a barrel in New York. Their industry index has gained 16 percent in 2005 after rallying 29 percent in 2004, when oil climbed to a record $55.67 on Oct. 25.

Oil and gas producers account for 8.3 percent of the S&P 500's value, up from 5.9 percent in 2001, when crude touched a low of $17.45. Financial-service companies are the largest group at 20 percent.

`Icing on Cake'

Exxon Mobil resulted from Exxon Corp.'s $88 billion purchase of Mobil Corp. in December 1999, the largest-ever corporate takeover at the time. Mobil shareholders received stock in the combined company.

Fourth-quarter net income at the Irving, Texas-based company, run by Chief Executive Officer Lee Raymond, increased 27 percent to a record $8.42 billion as fuel sales climbed and energy prices rose.

Crude-oil futures have increased 11 percent this year, following a 34 percent increase in 2004, amid surging global demand. Developing countries such as China and India are using more oil, and demand has outstripped supply. Crude oil for March delivery advanced 1.7 percent to $48.35 a barrel on the New York Mercantile Exchange.

The quarterly profit, reported last month, was the fourth- highest on record for any U.S. company, according to Bloomberg data. Exxon Mobil has recorded six of the country's 10 biggest profits in history.

``Under the management of Lee Raymond, Exxon Mobil's goal is to be the most efficient and most profitable company,'' said Tom Cirigliano, a spokesman. Being the largest ``is just icing on cake,'' he said.

Above 10 Percent

Shares of Exxon Mobil have almost doubled since reaching a 4 1/2-year low of $29.75 a share on July 22, 2002. The advance exceeds the 60 percent gain in GE's stock from its 2002 low, $22.48, set on Feb. 14.

GE's profit growth fell below 10 percent during the first three years of Jeffrey Immelt's tenure as CEO. Immelt replaced Jack Welch in 2001. Annual profit rose 12 percent to 19 percent in Welch's last five years, peaking in 2000.

Last year, net income at the Fairfield, Connecticut-based company climbed 11 percent. Fourth-quarter earnings at GE rose 18 percent as takeovers and demand for engine parts and loans drove the largest sales increase under Immelt, an 18 percent jump to a record $43.7 billion.

The company shed lower-return businesses, including satellite leasing and some insurance units, while making more than $60 billion of acquisitions in faster-growing areas like water treatment, consumer finance and health care.

`Still Expensive'

Immelt forecast on Dec. 14 that profit will increase this year by 13 percent to 17 percent and earnings per share will climb 10 percent to 15 percent to between $1.75 and $1.83. Revenue will rise about 10 percent, he said.

``We focus on building and operating the businesses that produce the earnings growth that increases the value of the company for corporate customers and for shareholders,'' said David Frail, a GE spokesman. ``We don't focus on rank.''

Exxon Mobil's shares may outperform GE's because the oil company represents a better value relative to profit growth, some investors said.

The oil company is valued at 14.9 times trailing 12-month earnings, less than its average of 17.5 during the past five years, according to Bloomberg. GE trades at 22.6 times profit, about even with its five-year average of 23.1.

``GE is still expensive,'' said Eugene Sit, chairman of Sit Investment Associates, which oversees $6.3 billion of assets in Minneapolis. ``Exxon Mobil will continue to lead'' as demand for oil exceeds production, he said. Sit's firm owns GE and has more money invested in energy shares than benchmarks would suggest.

Former No. 1

Exxon was the biggest U.S. company in 1991 and 1992, after the U.S. drove Iraq out of Kuwait in the Gulf War, according to S&P. The company's market value in 1992 was $76 billion, or about 20 percent of its size today.

GE and Microsoft Corp., the world's largest software company, traded positions as No. 1 and No. 2 by market value during much of the past seven years.

Microsoft's market value climbed to $604 billion by the end of 1999, when it represented almost 5 percent of the S&P 500. GE followed at $507 billion, amounting to 4.1 percent of the index, according to S&P. Today, the Redmond, Washington-based company trails Exxon Mobil and GE with a market value of $277 billion.

Cisco Systems Inc. briefly climbed to the top in March 2000, at the height of the ``Internet bubble'' in technology stocks. Cisco, the world's largest computer-networking company, was valued at $555.4 billion at the time. The company, based in San Jose, California, was valued at $114.6 billion today.

By the Numbers

Exxon Mobil's and GE's market values are based on shares outstanding on Sept. 30, the most recent figures available for both companies. Exxon Mobil had 6.45 billion shares and GE had 10.57 billion.

Repurchases reduced the number of Exxon Mobil shares outstanding to 6.4 billion as of Dec. 31, Cirigliano said. GE will give an updated number in its annual report to be filed with the Securities and Exchange Commission, Frail said. He declined to elaborate.

To contact the reporter on this story:
Danielle Sessa in New York at dsessa@bloomberg.net.

To contact the editor responsible for this story:
John Melloy at jmelloy@bloomberg.net.

Last Updated: February 18, 2005 14:37 EST
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[anti-bush2008]

Yeah... the big W is doing flips right now screaming Yeeeeeeeeeeeeeeeeeeeeeeeeeee-haw!!!

:cry: It's sad!! :cry:

P.S. No matter how hard I try I can't get pictures to show up in "My Photo" or anything!! How do you do it??????

[learn to swim]

anti-bush2008 wrote: Yeah... the big W is doing flips right now screaming Yeeeeeeeeeeeeeeeeeeeeeeeeeee-haw!!!

:cry: It's sad!! :cry:

P.S. No matter how hard I try I can't get pictures to show up in "My Photo" or anything!! How do you do it??????


http://www.politicalcrossfire.com/forum/viewtopic.php?t=775

Should help. If you have any other questions you can ask there.

[gigatexal]

anti-bush2008 wrote: Yeah... the big W is doing flips right now screaming Yeeeeeeeeeeeeeeeeeeeeeeeeeee-haw!!!

:cry: It's sad!! :cry:

P.S. No matter how hard I try I can't get pictures to show up in "My Photo" or anything!! How do you do it??????

Sad? Those comments are one of the things I hate about the democratic party. At least regarding its socialist leaning anti-everything members.

GE and Exxon merge eh? All this means is that the same company that builds your light bulbs to the x-ray machine your doctor uses to the tanks and such as well as other military warfare tools is now partnered with a huge oil company. So now the Bush administration can write a check to one company, heh, Exxon-GE.

[ToonArmyIsComing]

Yeah ... nation states should be destroyed! We should have corporations ruling the world from now on IMHO! ;)

[lilrascal]

ToonArmyIsComing wrote: Yeah ... nation states should be destroyed! We should have corporations ruling the world from now on IMHO! ;)

They practically already do. The top 20 banks in the world have close to 425 billion in assets.