NEW YORK, July 22, 2002 (PRIMEZONE) -- Fewer corporations adopted new names in the first half of 2002, according to the 33rd semi-annual survey of corporate name changes released today by Enterprise IG, the world's largest brand and identity consultancy. The consultants reported a decline of 30 percent from the same period last year, from 1993 names to 1397.
According to Enterprise IG spokesman Scott Lerman, CEO, the Americas, "This is the most dramatic decrease in name changes that we've seen in the last two decades. The significantly lower numbers can be traced to business concern over the status of the economy at home and abroad, and continuing uncertainty on both local and international fronts."
Enterprise IG's name change survey for the previous six months reflects a growing recognition of the marketing significance of the corporate name. It shows a drop in frivolous name changes, as surviving dotcoms recognize the importance of carefully chosen, more appropriate names. It also shows that a number of wellknown corporations streamlined their names or selected new ones more in line with their current and future operations.
As usual, financial institutions including banks, thrifts, investment houses, brokerages and mutual funds accounted for the largest number of new names, a total of 647 or 46 percent, a decline of 28 percent. This was partially due to fewer new names among mutual, bond and money market funds as major houses completed consolidating current and earlier acquisitions. Communications firms comprised 167, or 12 percent of the total, followed by manufacturing and industrial companies with 140, or 10 percent. Energy corporations dropped from 107 in 2001 to 90 this year; health care institutions remained the same at 67; food firms rose from 36 to 41; retailers slid from 64 to 29; and transportation and technology firms declined from 40 to 27 and 32 to 24 respectively.
Name changes due to corporate restructuring, including mergers and acquisitions, divestitures, sales of assets, and spinoffs, among others, totaled 767, about 10 percent less than last year. An additional 630 companies adopted new names without the impetus of a structural change, a decline of 40 percent from 2001's 1053.
Among the new names on the corporate score card, Minnesota Mining & Manufacturing changed to the name by which it has long been known, 3M. World Wildlife Fund administered a coup de grace to World Wrestling Federation Entertainment by establishing its exclusive right to the initials WWF, leaving the wrestlers with WWE for World Wrestling Entertainment. Morgan Stanley buried Dean Witter, a firm founded in 1924. Aubrey C. Lanston became part of Mizuho Securities USA in name as well as in fact. Philip Morris adopted Altria Group, the umbrella name for its holdings, although the Philip Morris name will remain with the tobacco company. Deutsche Bank eliminated Alex Brown in favor of Deutsche Bank Securities. And PwC Consulting, in perhaps the most controversial name change so far this year, introduced to us Monday.
Among non U.S. firms, Korean Pohang Iron & Steel Co. simplified its name to POSCO, PanCanadian Energy and Alberta Energy merged into EnCana Corp., and Renault and Nissan joined in a new holding company RenaultNissan NV. In Britain, postal authorities bowed to public will and are changing Consignia, the name it adopted 15 months ago, to Royal Mail Group.
New corporate names encompassed 40 states with New York leading with 86 names; followed by California with 72, Massachusetts with 45, Texas with 36, and Illinois with 33. Among the 34 non-U.S. countries with companies reporting new names, the United Kingdom led with 72; Canada was second with 67; Japan edged out Germany with 31 to the latter's 26; and France retained fifth place although it dropped from 24 to 18.
Notes to editors: About Enterprise IG Enterprise IG, a WPP company, is the world's largest brand and identity consultancy. The company provides a wide range of corporate and consumer branding services including brand strategy, corporate identity, naming, brand analytics and implementation. Enterprise IG employs over 700 people worldwide based in offices in Amsterdam, Bangkok, Cape Town, Copenhagen, Detroit, Dublin, Hamburg, Hong Kong, Johannesburg, London, Melbourne, New York, Oslo, Perth, San Francisco, Shanghai, Singapore, Stockholm, Sydney, Taipei and Tokyo. Clients include Bank of America, CocaCola, Disney, AXA, Ford Motor Company, Instinet, Merck, Qwest and Reuters.
About WPP
WPP (Nasdaq:WPPGY) is one of the world's leading communications services groups, providing national, multinational and global clients with advertising; media investment management; information and consultancy; public relations and public affairs; branding and identity, healthcare and specialist communications. Collectively, WPP employs 65,000 people in 1300 offices in 102 countries. As of June 28, 2002
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