Leaders of the packs

Marius Kloppers, chief executive of BHP Biliton

To be highly respected in a particular sector does not necessarily mean a company is the biggest among its peers or the most profitable. Industry sector winners in this year's BRW Most Respected Companies list range from corporate giants which dominate their sectors to small, innovative outfits which have carved out their niche.

Participants in the industry leaders survey were asked to nominate and rate the organisation they respected most within their respective sectors. Further research was supported by interviews with industry analysts.

Of the 17 sector winners, five appear in the overall top 10 Most Respected Companies list: BHP Billiton (mining), Origin Energy (energy), Toyota Australia (Manufacturing/wholesale trade), Westpac Banking Corporation (banking) and Woolworths (retail trade).

Agriculture, forestry and fishing

Company: Bega Cheese

Why it is admired: Cheese maker Bega Cheese has forged alliances with larger partners. Its relationships with the likes of New Zealand dairy giant Fonterra have allowed Bega to generate almost $1 billion in annual sales - a figure it should reach this financial year. Bega has a culture of innovation and it has been focusing on exports to Asia and other markets, an important source of revenue (see 'Great and Small').

Business services

Company: McKinsey & Company

Why it is admired: McKinsey & Co alumni are scattered throughout the executive ranks of Australian business. Their success, and the breadth and depth of McKinsey's client base, are among the company's most admired traits. McKinsey consultants work on some of the biggest issues in Australian business, including as the lead adviser role in the $43 billion national broadband network project.

Communication services

Company: IBM

Why it is admired: IBM is truly a global technology giant. It has a market capitalisation of about $US166 billion ($178 billion) and its share price has doubled in the past year. In Australia, its innovative work practices and strong culture are listed as strengths by admirers. IBM Australia became the first Australian IT company to break the $4 billion annual revenue mark last year.

Construction

Company: Leighton Holdings

Why it is admired: Construction giant Leighton Holdings and its subsidiaries, such as John Holland and Thiess, have won a string of large infrastructure projects in the past year. It will lead the consortium that won the tender for the Victorian desalination project. Observers describe Leighton chief executive Wal King as a strong leader of an innovative and well-managed company. Leighton has $37 billion worth of work in hand.

Insurance

Company: QBE Insurance

Why it is admired: Chief executive Frank O'Halloran is admired by many in the market. Observers cite O'Halloran's leadership and his preparedness to take on and manage risk as QBE's strengths. It helps that he has taken the company from a market capitalisation of $7 million to $23 billion during his 22-year tenure. Its $1.01 billion net profit for the half year to June was a record result.

Pharmaceutical

Company: CSL

Why it is admired: It was only 15 years ago that the then Commonwealth Serum Laboratories was a fledgling $312,000 company newly listed on the Australian Securities Exchange. Today, it is a $20 billion market behemoth. Chief executive Brian McNamee's leadership is described as outstanding by admirers, who say the company's culture and commitment to innovation are significant strengths.

Financial services

Company: Ernst & Young

Why it is admired: Ernst & Young is a global accounting giant that has a strong presence in Australia. Clients say the firm has a strong brand, and that it is consistently professional and upbeat. The ability to service large corporate clients is also seen as a plus. Ernst & Young was the third-largest accounting firm ranked by BRW this year, with revenue of $943 million.

Investments

Company: UniSuper

Why it is admired: UniSuper, the superannuation fund for higher education and research workers, is a highly respected leader and solid performer in a sector that has had its challenges in the past few years. UniSuper is ranked as the fifth-largest super fund in Australia and 155th biggest in the world. Its investments include equity in the $3.5 billion Victorian desalination plant.

Property

Company: Lend Lease

Why it is admired: Lend Lease has ridden out the downturn thanks to its conservative approach to risk. Admirers cite the company's environmental credentials and staff development programs as strengths. Its building division, Bovis Lend Lease, won contract work valued at nearly $4.4 billion in the past financial year. The next move may be for GPT, which it used to manage, or another property trust after its ambition to become a stapled entity.

Health

Company: Ramsay Health Care

Why it is admired: Paul Ramsay has managed to strike a good balance between financial performance, concern for customers and staff satisfaction during his company's 12 years as a listed entity on the Australian Securities Exchange. Ramsay's involvement in the health sector goes back to 1964. The largest private hospital operator in Australia, Ramsay Health Care increased group revenue by 20.6 per cent to $3.2 billion in the past financial year.

Legal services

Company: Mallesons Stephen Jaques

Why it is admired: This giant law firm's business model is widely admired, and no wonder. It is the biggest such firm in the country with $552.6 million in annual revenue. And Mallesons' profit margin of 44 per cent - translating to a $245 million net profit - would have to be one of the best in corporate Australia. Clients also admire the firm's expansion in Asia, which is another strategy that has put Mallesons ahead of its peers.

Transport

Company: Linfox

Why it is admired: Transport and logistics giant Linfox shows little sign of slowing down, 53 years after it was founded by billionaire Lindsay Fox. He took a one-truck company and built it into a national leader that is synonymous with transport in Australia. Although Fox does not have a hands-on role these days, he remains a popular executive chairman of a company that had record earnings and sales in July and August.

BRW