ExxonMobil shatters US profit record

[ladiesbballcoach]

Well, a) this is ain't going to go over well in the media and on Capitol Hill; b) is ridiculous in this economic climate; c) should be good for my retirement portfolio.

 

http://www.usatoday.com/money/companies/earnings/2009-01-30-exxonmobil_N.htm

 

HOUSTON — ExxonMobil (XOM) on Friday reported a profit of $45.2 billion for 2008, breaking its own record for full-year earnings by a U.S. company, even as fourth-quarter profit tumbled 33%.

The previous record for annual profit was $40.6 billion, which the world's largest publicly traded oil company set in 2007.

 

The extraordinary full-year profit wasn't a surprise given crude's triple-digit price for much of 2008, peaking near an unheard of $150 a barrel in July. Since then, however, prices have fallen roughly 70% as a global economic crisis worsens.

 

In the fourth quarter alone crude tumbled 60%, prompting spending and job cuts in an industry that was reporting robust, often record, profits as recently as last summer.

 

 

I do have to say that it is troubling that they have record profits so much for 3 quarters that it breaks a yearly record and then cut jobs at the end of the year instead of using some of those profits to maintain jobs is a real crummy way to handle it.

[Dlbdonn]

Well, a) this is ain't going to go over well in the media and on Capitol Hill; b) is ridiculous in this economic climate; c) should be good for my retirement portfolio.

 

http://www.usatoday.com/money/companies/earnings/2009-01-30-exxonmobil_N.htm

 

HOUSTON — ExxonMobil (XOM) on Friday reported a profit of $45.2 billion for 2008, breaking its own record for full-year earnings by a U.S. company, even as fourth-quarter profit tumbled 33%.

The previous record for annual profit was $40.6 billion, which the world's largest publicly traded oil company set in 2007.

 

The extraordinary full-year profit wasn't a surprise given crude's triple-digit price for much of 2008, peaking near an unheard of $150 a barrel in July. Since then, however, prices have fallen roughly 70% as a global economic crisis worsens.

 

In the fourth quarter alone crude tumbled 60%, prompting spending and job cuts in an industry that was reporting robust, often record, profits as recently as last summer.

 

 

I do have to say that it is troubling that they have record profits so much for 3 quarters that it breaks a yearly record and then cut jobs at the end of the year instead of using some of those profits to maintain jobs is a real crummy way to handle it.

Amen Brother :madman:

[TonyDanza]

In the fourth quarter alone crude tumbled 60%, prompting spending and job cuts in an industry that was reporting robust, often record, profits as recently as last summer.[/i]

 

 

I do have to say that it is troubling that they have record profits so much for 3 quarters that it breaks a yearly record and then cut jobs at the end of the year instead of using some of those profits to maintain jobs is a real crummy way to handle it.

 

Remember I am not "samrt"....please explain this to me?

[ladiesbballcoach]

Remember I am not "samrt"....please explain this to me?

 

It seems when crude prices tumbled they got rid of workers instead of using record profits from the previous 3 quarters to tie them over through the bad spots. Now if they span would have been longer, I can see them having to get rid of workers. But it seems a pretty quick response to get rid of workers when the company itself is making record profits.

 

That is my unsamrt response. I hope that is not taunting and I get in trouble again. It is not meant to be.:lol:

[TonyDanza]

It seems when crude prices tumbled they got rid of workers instead of using record profits from the previous 3 quarters to tie them over through the bad spots. Now if they span would have been longer, I can see them having to get rid of workers. But it seems a pretty quick response to get rid of workers when the company itself is making record profits.

 

That is my unsamrt response. I hope that is not taunting and I get in trouble again. It is not meant to be.:lol:

 

No worries! :thumb: and thank you for your wisdom.

[ladiesbballcoach]

No worries! :thumb: and thank you for your wisdom.

 

Do you agree that it is kinda slimy to be making record profits but laying people off?

[2 Humped Camel]

Do you agree that it is kinda slimy to be making record profits but laying people off?

 

Yes which is why it is so important to get corporations out of the pocket of our lawmakers.

 

Windfall profits tax anyone?

[ladiesbballcoach]

Yes which is why it is so important to get corporations out of the pocket of our lawmakers.

 

Windfall profits tax anyone?

 

You mean like all the CEO's that O recently had at the White House and took a photo op with?

 

Not all CEO's are bad. Some are the greatest business leaders of our generation and their opinion/advice should be considered. But like parents, our leaders have to show leadership and tell those people NO sometimes.

[ladiesbballcoach]

 

Windfall profits tax anyone?

 

Didn't Sarah Palin do that? So, it must be a BAD idea for her to have done it.:sssh:

[2 Humped Camel]

You mean like all the CEO's that O recently had at the White House and took a photo op with?

 

Not all CEO's are bad. Some are the greatest business leaders of our generation and their opinion/advice should be considered. But like parents, our leaders have to show leadership and tell those people NO sometimes.

 

Agreed to an extent but they also have thier industries and companies interest in mind, not the American people. This is a problem on both sides!

[2 Humped Camel]

Didn't Sarah Palin do that? So, it must be a BAD idea for her to have done it.:sssh:

 

I didn't say all her ideas were bad, just most of them.:lol:

[ladiesbballcoach]

Agreed to an extent but they also have thier industries and companies interest in mind, not the American people. This is a problem on both sides!

 

Absolutely yes you are right.

But also they should know that a strong US economy, FOR MOST BUSINESSES, means a better situation for their company.

 

Some businesses though will do best when the economy is not doing well. There product is more of a staple item that people go back to buying when money is tight and buy less of when they have money.

[cch5432]

From my limited understanding of the world, here is what I gather:

 

The only reason these record profits happen now is because of excellent foresight and vision (and enormous risk) from these companies decades ago. They purchased, developed, and held on to reserves when oil prices were very low. Think of it this way- I am investing as much cash as I can gather right now (as a full-time college student I can assure you that this is not very much) so that 10, 15 years down the road it will be very valuable. Should I be punished? No, my punishment is that my money could be lost forever- the risk. However, if terrible fiscal policies made me think that I would not make my money back (which, ironically, they have) then I would never have invested. And without my investment, this economy is going nowhere. Similarly, if the oil companies had never done this years back, prices of gas would be astronomical now.

 

Furthermore, tax the heck out of profits (reduce incentives) and what will happen? Reduced exploration, drilling, development, etc. Who will this hurt? Everyone. The oil companies will have less profits. The investors will have less ROI. The consumers will pay higher prices. And, in a world of unintended consequences, specifically for the oil industry, who will have more control of oil? Not only OPEC but even Hugo Chavez or even Ahmadinejad.

[ladiesbballcoach]

From my limited understanding of the world, here is what I gather:

 

The only reason these record profits happen now is because of excellent foresight and vision (and enormous risk) from these companies decades ago. They purchased, developed, and held on to reserves when oil prices were very low. Think of it this way- I am investing as much cash as I can gather right now (as a full-time college student I can assure you that this is not very much) so that 10, 15 years down the road it will be very valuable. Should I be punished? No, my punishment is that my money could be lost forever- the risk. However, if terrible fiscal policies made me think that I would not make my money back (which, ironically, they have) then I would never have invested. And without my investment, this economy is going nowhere. Similarly, if the oil companies had never done this years back, prices of gas would be astronomical now.

 

Furthermore, tax the heck out of profits (reduce incentives) and what will happen? Reduced exploration, drilling, development, etc. Who will this hurt? Everyone. The oil companies will have less profits. The investors will have less ROI. The consumers will pay higher prices. And, in a world of unintended consequences, specifically for the oil industry, who will have more control of oil? Not only OPEC but even Hugo Chavez or even Ahmadinejad.

 

 

But the bolded does not seem to be occurring as record profits are going into the owner's pockets while the workers are being laid off.

[TonyDanza]

Do you agree that it is kinda slimy to be making record profits but laying people off?

 

YEP!!!!!!!!!