Thursday, October 27, 2005

Exxon Mobil's Corporate Greed Revealed

Prepare yourself for this one.

Exxon Mobil hauled in a remarkable $100 billion in just three months, and $10 billion of it was pure profit.

Astonished? Well consider this; Exxon Mobil's profit actually exceeded Microsoft's first-quarter sales. And how about this mind-boggling nugget; the company earned $4.48 million an hour -- in profit -- during the quarter.

The oil company's third-quarter revenue and profit were both records for any publicly traded company. Given the current climate of high gas prices, the company's gains were so gigantic that even Senate Majority Leader Bill Frist, a Republican, called for hearings on the higher fuel prices.

The company is quite concerned that Congress will level a windfall profit tax on the industry, which would spoil the party. In an effort to fend off the likely political backlash, not to mention the PR mess that will surely ensue, the company took out full page ads in newspapers claiming that its profit is not all that different from other industries.

You buying that?

Exxon Mobil's reported earnings were up 75 percent from the same quarter a year ago.

Feeling gouged?

With gas prices exceeding $3 per gallon in many states, it's little surprise if you are. The Exxon Mobil earnings report destroys the argument that Hurricanes Katrina and Rita were the sole reasons for the severe gas price hikes that followed in their aftermath. Apparently Exxon Mobil, and perhaps other oil giants as well, was the primary reason.

Providing a fine example of Wall Street's schizophrenic nature and obsession with expectations, despite this eye-popping earnings report, Exxon Mobil's stock price actually fell 1%. That's because the $1.32 per share earnings were below the $1.38 per share that had been anticipated. Go figure. But I'll bet the execs aren't complaining.

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1 comment:

  1. Yeah only in the USA. I was reading what had to say about Exxon and other oil companies and this person had some interesting thoughts about going against the oil companies like everyone goes against tobacco.