P&G, GE, IBM among companies born during downturn
Recession might be pinching businesses badly, but some American corporate giants, including the likes of Procter & Gamble, General Electric and IBM, were born in times of economic turbulence.
By PTI |
NEW YORK: Recession might be pinching businesses badly, but some American corporate giants, including the likes of Procter & Gamble, General Electric and IBM, were born in times of economic turbulence.
Terming them as "six companies born during downturns", US magazine Fortune has listed the names of Procter & Gamble, IBM, General Electric, General Motors, United Technologies Corp and FedEx.
"Think a recession is a bad time to start a company? Imagine if the founders of these major corporations had thought the same...," the publication wrote about the six firms.
While Procter & Gamble and General Electric were founded during the "panic of 1837", IBM came into existence at the time of "long depression, 1873-1896".
Similarly, General Motors was founded during the "panic of 1907". Currently, the auto maker is adversely impacted by the economic turbulence and had asked for financial assistance from the Federal government.
Fortune noted that United Technologies Corp, which is into aerospace industry, came into existence "in 1929, amid the Great Depression".
FedEx, which is mainly into the shipping industry, was founded during the oil crisis of 1973, it added.
On Procter & Gamble, the magazine said with 83.5 billion dollars in revenue in 2008, the company has built a portfolio of some of the most recognisable brands in the US, including Tide, Pampers, Oral-B, Iams, Pantene, Duracell and Pringles.
"P&G had net earnings last year of 12.1 billion dollars. Because consumers rely on P&G products in good times and bad, it is considered a titan even in a rough economy," it noted.
"If it's true that what doesn't kill you makes you stronger," Fortune said, "IBM came into this recession well-fortified: Big Blue is a veteran of near-death experiences."
About General Electric, the magazine said that Thomas Edison had set up a facility in the US in 1876. "There, he produced the first light bulb in 1879 - the same year the panic officially ended.
"Although economic conditions would remain poor until 1896, Edison had gained enough momentum to start a company he called Edison General Electric Company," the report noted.
Further, the magazine said, "In 1896, Edison's GE landed a spot on the first-ever Dow Jones Industrial Average. Today, it is the only remaining company of the original 12."
General Motors was founded on "September 16, 1908" and the same year, it became a holding company for Buick and Oldsmobile.
"Historians consider the Panic of 1907, also known as the Banker's Panic, to have ended in June 1908, even though the market didn't reach pre-1907 levels until 1909. That was perfectly timed for GM, which went on to acquire many more companies in that rebound year," Fortune noted.
Terming them as "six companies born during downturns", US magazine Fortune has listed the names of Procter & Gamble, IBM, General Electric, General Motors, United Technologies Corp and FedEx.
"Think a recession is a bad time to start a company? Imagine if the founders of these major corporations had thought the same...," the publication wrote about the six firms.
While Procter & Gamble and General Electric were founded during the "panic of 1837", IBM came into existence at the time of "long depression, 1873-1896".
Similarly, General Motors was founded during the "panic of 1907". Currently, the auto maker is adversely impacted by the economic turbulence and had asked for financial assistance from the Federal government.
Fortune noted that United Technologies Corp, which is into aerospace industry, came into existence "in 1929, amid the Great Depression".
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FedEx, which is mainly into the shipping industry, was founded during the oil crisis of 1973, it added.
On Procter & Gamble, the magazine said with 83.5 billion dollars in revenue in 2008, the company has built a portfolio of some of the most recognisable brands in the US, including Tide, Pampers, Oral-B, Iams, Pantene, Duracell and Pringles.
"P&G had net earnings last year of 12.1 billion dollars. Because consumers rely on P&G products in good times and bad, it is considered a titan even in a rough economy," it noted.
"If it's true that what doesn't kill you makes you stronger," Fortune said, "IBM came into this recession well-fortified: Big Blue is a veteran of near-death experiences."
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About General Electric, the magazine said that Thomas Edison had set up a facility in the US in 1876. "There, he produced the first light bulb in 1879 - the same year the panic officially ended.
"Although economic conditions would remain poor until 1896, Edison had gained enough momentum to start a company he called Edison General Electric Company," the report noted.
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Further, the magazine said, "In 1896, Edison's GE landed a spot on the first-ever Dow Jones Industrial Average. Today, it is the only remaining company of the original 12."
General Motors was founded on "September 16, 1908" and the same year, it became a holding company for Buick and Oldsmobile.
"Historians consider the Panic of 1907, also known as the Banker's Panic, to have ended in June 1908, even though the market didn't reach pre-1907 levels until 1909. That was perfectly timed for GM, which went on to acquire many more companies in that rebound year," Fortune noted.
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