15 Companies Losing the Most Money
5. Target Corp. (NYSE: TGT)
> Fiscal 2014 net loss: $1.6 billion
> Fiscal 2014 revenue:$72.6 billion
> Industry: Retail
> 1 yr. stock price change: -28.7%
Target reported a $1.6 billion loss in its fiscal 2014 (which ended January 31, 2015) on revenues of $72.6 billion. Target operated 1,934 stores, 1,801 in the United States and 133 in Canada as of the end of 2014. At the end of its fiscal 2014, Target announced plans to leave Canada. The closing of the Canadian stores resulted in a $4.1 billion charge for discontinued operations against Target’s income, resulting in the loss. Target, which was founded in 1902 and is headquartered in Minneapolis, Minnesota, had approximately 347,000 full-time, part-time, and seasonal employees as of January 31, 2015. During its peak sales period — from Thanksgiving through the end of December — Target employs about 447,000 workers. In fiscal 2013, Target reported a profit of just under $2 billion on revenues of $73.3 billion, and in fiscal 2012 the discount retailer had profits of just under $3 billion on revenues of $72.0 billion. For its 2014 fiscal year, Target paid shareholders $1.99 per share in dividends, up from $1.65 in 2014.
4. Anadarko Petroleum Corporation (NYSE: APC)
> Fiscal 2014 net loss: $1.8 billion
> Fiscal 2014 revenue: $18.5 billion
> Industry: Energy
> 1 yr. stock price change: -5.4%
Because of the significant drop in oil prices last year, oil and gas exploration company Anadarko Petroleum reported a loss of $1.8 billion for 2014. The Woodlands, Texas-based Anadarko was founded in 1959 and had about 6,100 employees as of December 31, 2014. The company’s weak year-end report was the result of lower crude oil prices and natural gas liquids sales. The company’s 2014 loss included a $4.4 billion contingent loss related to a settlement of environmental claims against the Kerr-McGee Corporation, which Anadarko acquired in 2006. In 2014, Anadarko paid shareholders dividends totaling 99 cents per share for the year, up from the 54 cents per share it paid in 2013.
3. Transocean Ltd. (NYSE: RIG)
> Fiscal 2014 net loss: $1.9 billion
> Fiscal 2014 revenue: $9.2 billion
> Industry: Energy
> 1 yr. stock price change: -56.1%
Switzerland-based Transocean is a global oil and gas offshore contract driller It performs contract drilling services in regions of the world it describes as “technically demanding” with its mobile offshore drilling fleet and associated equipment. As of December 31, the company had about 13,100 employees. Transocean operated the Deepwater Horizon drilling rig that exploded in 2010 in the Gulf of Mexico, killing 11 workers and causing one of the largest oil spills ever recorded. In September, a Louisiana court found Transocean was negligent and 30% at fault for the disaster. The company wrote off in excess of $4 billion as a result of the ruling and asset impairments. Transocean paid an annual dividend of $3.00 per share in 2014, up from $2.24 in 2013. For 2015, the annual dividend was cut to 60 cents per share.
2. Ensco plc (NYSE: ESV)
> Fiscal 2014 net loss: $3.9 billion
> Fiscal 2014 revenue: $4.6 billion
> Industry: Energy
> 1 yr. stock price change: -47.2%
Ensco plc, one of the largest providers of offshore drilling services, reported a $3.9 billion loss in 2014 due primarily to a $3 billion writedown of goodwill. The company’s goodwill valuation typically takes into account commodity prices, which fell in the fourth quarter of 2014. The London-based Ensco owns the second largest rig fleet in the world, operating in about 20 countries. The company recorded a loss of $1.2 billion in 2014 from “discontinued operations,” largely on account of the sale of one of the six rigs Ensco announced it would sell. In June 2014, Carl Trowell became Ensco’s CEO and president, succeeding Dan Rabun who retired after eight years as CEO. Ensco’s losses followed the decline in oil prices in 2014, which in turn led to a drop in drilling activity. Ensco, despite the loss, increased its annual dividend to $3.00 a share in 2014, up $1.00 from 2013. Ensco relies heavily on offshore oil and natural gas exploration, which account for a major portion of its revenues. During 2014, five customers accounted for nearly half of Ensco’s revenues. Its largest customer, BP, provided 16% of its revenues.
1. Apache Corp. (NYSE: APA)
> Fiscal 2014 net loss: $5.4 billion
> Fiscal 2014 revenue: $13.9 billion
> Industry: Energy
> 1 yr. stock price change: -21.6%
Oil and natural gas producer Apache Corp. lost a colossal $5.4 billion in its fiscal 2014, as its revenues plunged 10.9% from 2013 largely due to falling oil prices. Apache wrote off $2.4 billion of assets which lost value because of the drop in oil prices. Despite the loss, Apache in 2014, raised its annual dividend to $1.00 per share from 80 cents in 2013. At the end of 2014, Apache had 4,950 employees. Apache’s principal operations are in the Anadarko basin in western Oklahoma and in the Texas panhandle, the Gulf Coast, and parts of Western Canada. It also has operations in Egypt. Its losses followed a more than 50% drop in crude oil prices during the year, which also affected other oil producing companies. Apache’s long-time CEO G. Steven Farris abruptly resigned in January, a month before the company’s earnings report was released, and about a week after the company said it was laying off 5% of its staff, or about 250 employees.