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[wordsmythe]

Exxon shatters profit records

Oil giant makes corporate history by booking $11.7 billion in quarterly profit; earns $1,300 a second in 2007.

By David Ellis, CNNMoney.com staff writer
February 1 2008: 10:03 AM EST



NEW YORK (CNNMoney.com) -- Exxon Mobil made history on Friday by reporting the highest quarterly and annual profits ever for a U.S. company, boosted in large part by soaring crude 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.

That topped Exxon's 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 can put out some amazing numbers and this is one of those cases," said Jason Gammel, senior analyst at Macquarie Securities in New York.
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.

Analysts were looking for the company to report quarterly profit of $10.36 billion on revenue of $114.9 billion, according to earnings tracker Thomson Financial.

Despite topping Wall Street's estimates, Exxon (XOM, Fortune 500) shares slipped in morning trading.

Exxon 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.

Natural gas prices also jumped last year, albeit marginally. But costs have also increased for the oil companies, which is why profits haven't risen as rapidly as crude prices.

Big oil companies that both pump oil and refine crude into gasoline have to spend more for crude but are unable to pass on all the extra cost to consumers, which eats in to gasoline profit margins.

The average price for a gallon of regular gasoline hit an all-time high of $3.227 in May, according to the motorist organization AAA. 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.

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.

Exxon isn't the only oil giant to report impressive earnings. No. 2 Chevron (CVX, Fortune 500) also reported a jump in quarterly profit on Friday. Conoco (COP, Fortune 500), the nation's third largest oil company, trounced profit estimates by nearly 25% when it reported last week.

[Army_of_One]

Good news it is INDEED! All that money they made will help the thousands (if not millions) of people that invest in their stock make money. That would include the average joe also. (ME) My mom has oil wells on her land and every time oil goes up so does her oil checks... A lot of people benefit from those profits!!! Good call Wordy.

[wordsmythe]

As usual the rich get richer and the poor pay for it.

[Army_of_One]

Originally Posted by wordsmythe

As usual the rich get richer and the poor pay for it.

How so? I'm not rich but I have some investments that include oil companies. My mother is retired and not wealthy. There are MANY average, middle class Americans that invest in mutual funds and reap the reward of the oil companies making money. There are a lot of "poor" people out there that could do the same thing but they spend their money on lottery tickets, booze and such. Last time I checked mutual funds were open to anyone that wants to invest.

[wordsmythe]

hmmmm a hunnert bucks in mutual funds or pay the dr, bill, buy food and pour the rest in the tank, so Army and his mom can get a few extra bucks...

How irresponsible.

[Army_of_One]

Originally Posted by wordsmythe

hmmmm a hunnert bucks in mutual funds or pay the dr, bill, buy food and pour the rest in the tank, so Army and his mom can get a few extra bucks...

How irresponsible.

Yeah wordy...that's here. Here are some demographics of the "poor" you are talking about...

Understanding Poverty in America

Ninety-seven percent of poor households have a color television; over half own two or more color televisions.

Seventy-eight percent have a VCR or DVD player; 62 percent have cable or satellite TV reception.

Seventy-three percent own microwave ovens, more than half have a stereo, and a third have an automatic dishwasher.

Overall, the typical American defined as poor by the government has a car, air conditioning, a refrigerator, a stove, a clothes washer and dryer, and a microwave. He has two color televisions, cable or satellite TV reception, a VCR or DVD player, and a stereo. He is able to obtain medical care. His home is in good repair and is not overcrowded. By his own report, his family is not hungry and he had sufficient funds in the past year to meet his family's essential needs. While this individual's life is not opulent, it is equally far from the popular images of dire poverty conveyed by the press, liberal activists, and politicians.

So perhaps Wordy instead of a 2nd t.v and paying 75 bucks a month for cable they could invest in the oil companies and share a portion of the profits. In a lot of cases Wordy poverty is a choice.

[wordsmythe]

can you atcually buy a black and white TV anymore?

[Army_of_One]

Originally Posted by wordsmythe

can you atcually buy a black and white TV anymore?

Is that really relevant to the conversation?

[wordsmythe]

It is if your first point is that 97% of the poor have a color television.

It shows your information is skewed and biased.

[Army_of_One]

Originally Posted by hoarsewhisperer

don't break your arm patting yourself on the back

I'm not patting myself on the back. I'm just stating that even a poor working stiff like me can find a way to stash a couple of bucks a month in SOME type of fund. If I can do it anyone can. I'm a one income family with a child. It's not about patting on the back...