Exxon Mobil posts biggest US quarterly profit ever

[meltodd69]

Exxon Mobil posts biggest US quarterly profit ever
By JOHN PORRETTO, AP Business Writer John Porretto, Ap Business Writer – 27 mins ago

http://news.yahoo.com/s/ap/20081030/ap_on_bi_ge/earns_exxon_mobil

HOUSTON – Exxon Mobil Corp., the world's largest publicly traded oil company, reported income Thursday that shattered its own record for the biggest profit from operations by a U.S. corporation, earning $14.83 billion in the third quarter.

Bolstered by this summer's record crude prices, the Irving, Texas-based company said net income jumped nearly 58 percent to $2.86 a share in the July-September period. That compares with $9.41 billion, or $1.70 a share, a year ago.

The previous record for U.S. corporate profit was set in the last quarter, when Exxon Mobil earned $11.68 billion.

Revenue rose 35 percent to $137.7 billion.

On average, analysts expected the company to earn $2.39 per share in the latest quarter on revenue of $131.4 billion.

Company shares fell 69 cents to $73.96 at the open of trade.

Exxon Mobil's results got a boost of $1.62 billion in the most-recent quarter from the sale of a natural gas transportation business in Germany. It also took a special, after-tax charge of $170 million related to a punitive damages award related to the 1989 Exxon Valdez oil spill.

Excluding those items, third-quarter earnings amounted to $13.38 billion — nearly 15 percent above its previous profit record from the second quarter.

As expected, Exxon Mobil posted massive earnings at its exploration and production, or upstream, arm, where net income rose 48 percent to $9.35 billion. Higher oil and natural gas prices propelled results, even though production was down from the third quarter a year ago.

Oil producers are coming off a quarter during which crude prices reached an all-time high of $147.27 — and their profits have reflected it. Crude prices, however, have quickly fallen 50 percent from the summer's highs, and the global economic malaise has raised questions about energy demand at least into 2009.

Some companies, especially smaller producers, are scaling back spending on new exploration and production projects because of the uncertainty, though analysts say that its less likely to happen at the well-heeled giants like Exxon Mobil.

[Fiabug]

<sigh> Sad but true, but hard not for them to get richer the way the prices have gone up.

I'm just happy that it's under $2.00 here finally after 2 years.

[LuvBigRip]

But what is the profit margin? If it lies within 7-10&#37;, then it is well within standards for running a business.

[Fiabug]

But what is the profit margin? If it lies within 7-10%, then it is well within standards for running a business.

I don't know too much about running a business or profit margins. I did find this
http://finance.yahoo.com/q/ks?s=xom

But it seems to me like it may need to be updated after the news above.

[LuvBigRip]

So, they are right at 10.17 percent. A little above what most businesses would consider a good profit year, not an excess profit year.

An update may also indicate higher costs, and could still maintain the profitability ratio. That is the problem with too many people, they see huge profits and think OMG I am being gouged, lets spread the wealth, but they do not take into account of the labor costs (the highest cost associated with running a business) investments into the company, losses accrued, insurance, and all other costs assosiated with running a solid business.

Jobs are created and the economy is boosted by companies like this. The large companies make a profit and decide to expand. They build a new facility, which creates construction jobs, who buy materials, suppliers need to hire people. The economy does not grow jobs from the bottom. The economy grows jobs from the top, and a 10.17 profitability margin is perfectly acceptable.

I have owned my own business and have worked for small contractors, to large contractors and have a very good concept of profitability margins and how the market on jobs works.

[Fiabug]

Not to totally disagree with you but for awhile there we were being gouged at the gas pump. Not just by Exxon but others too.

Again, I know very little about owning a business. Never have. Heck anything with numbers makes me cringe inside. LOL

[LuvBigRip]

Again, I would have to disagree. While the cost of gas had gotten considerably higher, we still pay way less for gas than virtually all civilized nations. Check out the cost of gas in Japan, England and so on.



Breakdown of Gas Prices
When you pump $30 into your tank, that money is broken up into little pieces that get distributed among several entities. Gas is just like any other consumer product: There's a supply chain and several groups who are responsible for setting the price of the product. The media can sometimes lead you to believe that the price of gas is based solely on the price of crude oil, but there are actually many factors that determine what you pay at the pump. No matter how expensive gas becomes, all of these entities have to get their slice of the pie. According to the U.S. Department of Energy, here's an approximation of where each dollar you spend on gas goes:


Taxes: 11 cents

Distribution and Marketing: 6 cents
Refining: 10 cents
Crude oil: 73 cents


http://auto.howstuffworks.com/gas-price1.htm


Taxes - Federal excise taxes are 18.4 cents per gallon, and state excise taxes average 18.2 cents per gallon. There may also be some additional taxes, such as applicable state sales taxes, gross receipts taxes, oil inspection fees, underground storage tank fees and other miscellaneous environmental fees. Add that to the state excise taxes, and it can average 27.4 cents. It could be worse. In Europe, gas prices are far higher than in America because taxes on gas are much higher.

Station markup - Of course some of the money you spend at the pump does go to the service station. While some consumers blame high prices on station markup, service stations typically add on a few cents per gallon. There's no set standard for how much gas stations add on to the price. Some may add just a couple of cents, while others may add as much as a dime or more. However, some states have markup laws prohibiting stations from charging less than a certain percentage over invoice from the wholesaler. These laws are designed to protect small, individually-owned gas stations from being driven out of business by large chains that can afford to slash prices at select locations.

http://auto.howstuffworks.com/gas-price1.htm

Gas (petrol) in England right now is approximately $1.08 British Pounds per litre which is approximately $1.78 american dollars, which at 4 litres to a gallon (approximately) that would be $7.12 per gallon.

Japan pays approximately 145 yen per litre which calculates to approximately $1.49 again times 4 is almost $6.00 per gallon.

[jeanea33]

I am not getting ripped off by exxon. They make a average profit. My own state has enough taxes on our gasoline. Just short of 50 cent a gallon. Remember congress wants to tax gas another dime, Because we started conserving. They are losing money. Even if you save, someone comes along and wants more.

[Bahet]

You cannot compare the cost of gas here to the cost of gas in Europe. For one thing, they have government health care. Part of that is funded from gas taxes. They don't pay out of their paychecks the way we do. Also, they have a lot better mileage on their cars than we do. It's not unusual for a car to get 50 miles/gallon there. They could make them here, but they don't. Even with just the mileage difference that cuts the price of gas essentially in half. That $7.12/gallon becomes more along the lines of $3.56 which is comparable to what we are paying (some of us aren't even close to being under $3/gallon yet) but they get healthcare too.

[LuvBigRip]

Which is what Obama says he is going to give us, and we are complaining about gas prices now.

[Bahet]

There is no free ride. We are going to pay for it one way or another. If we get Obama's plan it will be paid in part with gas tax but then it won't be taken out of paychecks. 6 of one, half a dozen of another.

[LuvBigRip]

Oh please. Like they are going to stop the income tax? No-one wants a free ride, except those who are already getting one, and don't want the gravy train to stop.

[jeanea33]

There is no free ride. We are going to pay for it one way or another. If we get Obama's plan it will be paid in part with gas tax but then it won't be taken out of paychecks. 6 of one, half a dozen of another.

I bet we pay for it both ways with Obama.

[Bahet]

Oh please. Like they are going to stop the income tax? No-one wants a free ride, except those who are already getting one, and don't want the gravy train to stop.

No Goofy! :lol They aren't going to stop income tax. They will stop taking money out of paychecks for company sponsored health care. At least I hope they don't stop doing income taxes. Then I'll be out of a job!

[LuvBigRip]

So, you think the balance of company sponsored healthcare will balance the hundreds upon hundreds of dollars more it costs you for gas? What about those people whose company pays for their healthcare, and that of their families?

[Bahet]

What company pays for all an employee's health care? I've never heard of any. You have some taken out of your paychecks then there are co pays, deductibles, etc. Even the government takes money out of employee's paychecks for part of their health care.

[LuvBigRip]

My company pays for 100&#37; of all my insurance and that of my children, we have a 500.00 deductable, which the company matches 1/2. We have a $15.00 copay.

[Bahet]

Are they hiring???

[LuvBigRip]

Actually, they usually are, and there is an office in Phoenix, I transferred up here to the corporate office.

[LuvBigRip]

I also meant to say that deductable is for dental only, we have a $0 deductable for healthcare, except dental.