Exxon Mobil Shatters its Own Profit Record for a US Company, Raked in $45.2B For 2008

While millions of workers are losing their jobs and the country is experiencing the worst economic crisis in years, Exxon Mobil Corp., shattered its own profit record for an American company by raking in $45.2 billion in profits for 2008. With profits like that they could implement their own buyout plan of a sector of the faltering economy — automakers. Even as the company’s fourth-quarter earnings fell 33 percent from a year ago, Exxon has still made history. The previous record for annual profit was $40.6 billion, which the world’s largest publicly traded oil company set in ’07. Funny, didn’t Shell post its first loss in 10 years?

Of course, this wasn’t a surprise because of 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 percent amid a deepening global economic crisis. In the fourth quarter alone crude tumbled 60 percent, prompting spending and job cuts in an industry that was reporting robust, often record, profits as recently as last summer.

Exxon said net income slid sharply to $7.8 billion, or $1.55 a share, in the October-December period. That compared with $11.7 billion, or $2.13 a share, in the same period a year ago, when Exxon set a U.S. record for quarterly profit. It has since topped that mark twice, first in last year’s second quarter and then with earnings of $14.83 billion in the third quarter. Boohoo!

Revenue in the most-recent quarter for Exxon fell 27 percent to $84.7 billion. Of course, Wall Street took this news with guarded optimism. Shares rose $1.26 to $78.26 in premarket trading.

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Filed under: bailout, Crude, Exxon Mobil, Record Profits, Royal Dutch Shell

Exxon Mobil Posts Biggest Profit in U.S. History

Well Exxon Mobil Corp. has set a quarterly profit record for a U.S. company, surging past analyst estimates. The company said its third-quarter net profit was $14.83 billion, or $2.86 per share, up from $9.41 billion, or $1.70, a year earlier. That profit included $1.45 billion in special items.Exxon’s prior record was $11.68 billion in the second quarter of 2008.

The company said its revenue totaled $137.7 billion in the third quarter. According to CNN Money, Exxon’s earnings were buoyed by oil prices, which reached record highs in the quarter before declining. Oil prices were trading at $140.97 a barrel at the beginning of the third quarter, and had fallen to $100.64 at the end. Compare that to 2007, when prices traded at $71.09 a barrel at the beginning of the third quarter, and rose to $81.66 by the end.

So, why does Exxon Mobil need tax credits from the government? Isn’t this the argument that Barack Obama has been making? So, while the economy is in the tank, Exxon managed to make history once more. Ain’t America great?

Filed under: Barack Obama, Exxon Mobil, John McCain

Democratic National Committee Launches Exxon-McCain ’08 Campaign

I guess the Democratic National Committee has said enough is enough to the Republican taunts abut tire gauges. According to Politico, it is launching an “Exxon-McCain ’08” campaign, complete with a gas-pump logo and garish red buttons, bumper stickers and yard signs. The party is opening a Web site where campaign “chum” will be available for download, and the goodies will be distributed to state parties and organizers nationwide.

The campaign reinforces a new Obama ad in which the announcer says: “Oil’s filling John McCain’s campaign with two million dollars in contributions. Maryland Gov. Martin O’Malley will announce the campaign at DNC headquarters in Washington. “The oil industry was so generous with its campaign largesse,” a party official says, “John McCain has not only put Exxon on the ticket — but he has graciously stepped aside and is allowing Exxon … to run at the top of the ticket.”If the governor needs to check his tires, he can stop off at the RNC, a couple of blocks away.

Here we go folks, the presidential election war rages on. Sit tight for a rough ride.

Filed under: Barack Obama, Democratic National Committee, Exxon Mobil, John McCain

American Airlines Sticks it to the Consumer With $15 Fee For 1st Checked Bag

American Airlines is in the process of setting a very troubling precedent. It has now said that passengers flying on its airlines domestically will have to pay $15 to check a bag and check a second bag, that will be $25 more. All this will commence on or around June 15, 2008. The reason–rising fuel costs. The airline said that it will also lay off workers and cut domestic routes. The problem is that the consumer is always getting screwed royally in the process. So, are we now supposed to carry all our sh** in our carry on bag to avoid these fees? The consumer ultimately gets screwed in just about all these hair-brained schemes.

So, according to media reports, with skyrocketing fuel costs threatening their viability, many of the nation’s big airlines are set to retrench in ways that passengers won’t like one bit. Making a move that analysts expect other major airlines will follow. American Airlines, also unveiled deep service cuts it intends to make this fall, a time when air travel traditionally slows, and when cash pressures are expected to become dire for U.S. airlines.”The airline industry as it is constituted today was not built for $125 [per barrel] or $135 oil,” Gerard Arpey, American’s chief executive, told reporters. “It can’t continue in its present state.”

This is major because I believe it will set the stage for the next round of painful cuts that will definitely affect you and I, the consumer. In addition to charging more fees, more airlines will have to shrink on a large scale, reducing the number of flights they provide and eliminating service to some smaller cities to save money and stave off bankruptcy, analysts said. Yeah, packing travellers like sardines. The airlines hope fewer seats will allow them to raise fares sufficiently to offset the cumulative $17.98 billion jump in fuel costs.

Chicago-based United Airlines, American’s largest competitor at O’Hare International Airport, said it is “seriously studying” a new baggage fee. Funny how this new charge is being tacked on in the middle of the summer travel season, as the LA Times has stated, providing more grist for disgruntled passengers who already are contending with fewer amenities at airports and on planes. American said it is rolling out other fee increases ranging from $5 to $50 for a host of services, including checking pets and oversize bags. Altogether the higher fees will generate several hundred million dollars in revenue.

One analyst has said that it will be a ‘very perilous time’ if airlines can’t find new ways to make money, most airlines—even large, well-run carriers like American—could be at risk of bankruptcy over the next two years. So, the best place to make up for that money is to stick it the consumer. This is ridiculous! So as it stands, if we continue down this path, only the wealthy will be able to fly around because the middle class is being squeezed in every possible direction–at the gas pump, in the supermarkets, at the department stores, in the financial arena, filing for bankruptcy to stay afloat, losing jobs and I could go on and on. The sad reality is that the oil majors such as Exxon Mobil Corp., Chevron Corp., ConocoPhillips, Royal Dutch Shell Plc, Sunoco Corp., BP Plc and even companies that provide services to them such as Schlumberger Ltd. and Baker Hughes are raking in the dough and pulling in big salaries. So, we are faced with a really serious problem and American Airlines’ decision is a very troubling one. Just stick it to the consumer no matter what. People need to rethink their summer plans and find another airline to fly with other than American Airlines, who obviously couldn’t care less about their domestic passengers. We really need to rethink how we purchase oil and what we have here in the United States to drill. We are too dependent on the Saudis and other countries for oil, which is wreaking real havoc on just about everything we touch. Just my thoughts, you be the judge….

Filed under: American Airlines, BP Plc, ConocoPhillips, Extra Bag, Exxon Mobil, Gas Prices, New Fees

Exxon Hits All-Time Record Quarterly and Annual Profits in U.S. Corporate History

Let me say Exxon is doing something right, while the rest of the U.S. economy is in a free-fall. With the rising costs of gasoline, subprime mortgage fallout, recession, record foreclosures, it is a reality check to hear that this company has had record quarterly and annual profits for 2007, dare I say, the biggest in U.S. corporate history, aided by higher oil prices.

Exxon, the world’s largest publicly traded oil company, said fourth-quarter net income rose 14% to $11.66 billion, or $2.13 per share. That’s up from $10.25 billion, or $1.76 per share, in the year-ago period, topping its previous quarterly profit record of $10.7 billion, set in the fourth quarter of 2005, which also was a record for a U.S. corporation.

Exxon also set an annual profit record by earning $40.61 billion last year – or nearly $1,300 per second in 2007. That exceeded its previous record of $39.5 billion in 2006. In the fourth quarter, revenue rose 29.5% from a year ago to $116.64 billion.

News reports say that the company attributed its impressive results to strong performance across its divisions, but a large part of the profit surge was underpinned by climbing oil prices. Crude prices skyrocketed nearly 60% last year. The surge helped prices break through the $100 a barrel mark for the first time ever early last month. Since crossing that milestone, prices have eased to around $91 a barrel.

So while the consumer is crapped on, there is no relief in sight. Of course not. The average price for a gallon of regular gasoline hit an all-time high of $3.227 in May, the prices do not seem to be moving downward in the near future. The high prices were blamed on strong demand and a series of accidents that shut down refineries in the U.S. Slack demand for gasoline in the latter half of last year kept gas prices from rising as much as crude prices.

The reports have said that Exxon’s earnings are likely to draw fire from consumer rights groups, who contend the oil industry is deliberately restricting supply and profiting on the back of U.S. motorists. They have previously called for a windfall profit tax on oil firms and have proposed breaking up the big oil companies created during the 1990s merger wave.

Talk about “black gold!”

Filed under: black gold, earnings, Exxon Mobil, gasoline prices, oil, profits