Price fixing I say.

CDN_Merlin · Post by **CDN_Merlin** » Fri Jan 30, 2009 11:26 am

By The Associated Press

HOUSTON - Exxon Mobil is reporting a profit of US$45.2-billion for 2008, breaking its own record for full-year earnings by a U.S. company, but fourth-quarter profits tumbled 33 per cent.

The fourth-quarter decline is not a surprise with oil's swift 60 per cent plunge in the final three months of the year. The previous record for annual profit was $40.6 billion, which Exxon Mobil set in 2007.

Crude prices began the year by passing the $100 mark and by July neared $150 per barrel.

Since then, however, prices have fallen roughly 70 per cent amid a deepening global economic crisis.

Tunnelcat · Post by **Tunnelcat** » Fri Jan 30, 2009 12:08 pm

Well, that explains why pump prices were going up for the last month here counter to the recent falling prices for a barrel of oil, up until last week when they started to drop again. Trying to boost sagging profits? Poor babies.

CDN_Merlin · Post by **CDN_Merlin** » Fri Jan 30, 2009 12:10 pm

Price at pumps has been rising for the last 2 weeks or so here. Why I have no sympathies for these companies.

CUDA · Post by **CUDA** » Fri Jan 30, 2009 12:50 pm

Prices are going up because production has gone down. even with the crude prices dropping. I'm not defending the oil companies. but they are only making average $.08 or 2.5% profit for each gallon of gas sold. while the government is making .50+ a gallon in taxes alone. dont blame the gas companies if we consume billions of gallons of fuel each year and they make their paultry 2.5% profits. while most other companies in this country work on a 25% to 40% profit margin or more

Dakatsu · Post by **Dakatsu** » Fri Jan 30, 2009 2:32 pm

Exxon, according to Yahoo Finance, has a 10.99% profit margin. They rank 48th. Admittedly it is an overall lower profit margin, but when you are such a large necessity, and you rake in large profits, you can do many things, such as:
-Lower the cost of your product
-Spend to develop other resources

The point of capitalism and industry is to improve your industry with your profit, either by lowering your prices, improving your product, improving the wages of your employees, or expanding; not cramming it into the pockets of your CEOs.

AlphaDoG · Post by **AlphaDoG** » Fri Jan 30, 2009 3:36 pm

Profits are profits, they are NOT losses. I don't have any sympathy for any company that makes a profit.

CUDA · Post by **CUDA** » Fri Jan 30, 2009 4:43 pm

AlphaDoG wrote:Profits are profits, they are NOT losses. I don't have any sympathy for any company that makes a profit.

thats has to be the single dumbest thing I've heard in Months!!!!

what company is in business to make losses?????

Canuck · Post by **Canuck** » Fri Jan 30, 2009 5:20 pm

The Government

and money laundering setups.

Duper · Post by **Duper** » Fri Jan 30, 2009 5:21 pm

almost 11%??!! yikes!!

Those in business know that's not good. A company needs about 20% to keep it head above water. Most companies run between 17 and 25%. Where I work, we enjoy 35-48% profit with 13% growth (over all) the last 5 years. The economy is helping put a cap on that though.

Notice that the article conveniently left out their percentage profit margin? It, instead, throws a HUGE figure at us to get our hackles up.

I'm not defending them either, but let's keep things perspective while realizing that those writing would like to shine a light on topics from their own slant. Sometimes what ISN'T said is more important that what is.

dissent · Post by **dissent** » Sat Jan 31, 2009 7:57 am

Here people, read this -

http://i-r-squared.blogspot.com/2009/01 ... html#links

(now don't be lazy; read all the links in Robert's several posts here) Let's all be more informed, shall we, instead of succumbing to foaming at the mouth silliness.

Profits are not evil, folk. OK, here's an idea; let's take away all the profits from domestic American gasoline producers. Since you can't grow and maintain such a capital intensive business without profits, these producers soon go under - bah, good riddance, you say. Heck, we can always just import refined product (e.g., gasoline). Yeah, let's count on foreign sources for our refined product too - oh yeaahhhh, that makes a lot more sense. /sarcasm

Dakatsu · Post by **Dakatsu** » Sat Jan 31, 2009 12:07 pm

Quit repeating profit margins like we should feel sorry for the poor oil companies because they are making a measily 11% profit margin. That doesn't matter when said industry has made $45.2 billion dollars in extra money, while the average US consumer can barely stay afloat with such high gas prices. They can afford to lower their prices, their profit margin can take a small hit for the American consumer. All that money goes into the pocket of big executives as well, not into the employees, or into alternative energy, or improving the company.

Spidey · Post by **Spidey** » Sat Jan 31, 2009 1:45 pm

So let’s assume they lower their profit margins to 6%, you would save maybe 10 cents per gallon, and they would be a a marginal profit level.

Would that make you happy?

Like 10 cents in going to make all that much difference to your bottom line, but could be the difference in the very existence of them.

You are letting all the huge numbers boggle your mind, as well as the class warfare practiced by the left. These companies make huge money by doing huge volume…not price gouging.

You want to mess around with some big numbers…look into the “expences” of these companies.

CUDA · Post by **CUDA** » Sat Jan 31, 2009 3:23 pm

to piggy back on what Spidey said. even if they lowered their profits by 50% that would still be a $22 Billion profit and you people would still piss and moan about them making too much money, many of you would not be happy unless they gave it away for FREE

ccb056 · Post by **ccb056** » Sun Feb 01, 2009 9:21 pm

Sounds like Obama needs to take some advice from the Exxon CEO to get us out of this rut.

woodchip · Post by **woodchip** » Mon Feb 02, 2009 7:24 am

I realise some of you are too young to appreciate the fact you will someday retire. You do understand that your pension fund is put into stocks? Now that I have informed, ask your self:

1) Do I want my pension stocks invested in companies that have miserly or no profits and thus the value of those stocks will never increase very much?

2) Do I want my pension kept in those same stocks when I finally do retire as your monthly income will be based on the dividends that the companies pay out...which is based on how much \"Profit\" the company pays.

So go ahead and follow the \"Change we can believe in\" corporate profit vilification the Alfred E Obama crowd wants to mind warp you with. As I see, a obscene profit making corporation is where I want my retirement income to come from.
Secondarily, realise profits also go into company expansion (read more jobs) and gets invested in other start up companies (read more jobs).

I hope at some point in the future, when you see something knocked about by a political group, you at the very least ask yourself why and what is the outcome.

ccb056 · Post by **ccb056** » Mon Feb 02, 2009 5:19 pm

2 words, class envy

Gooberman · Post by **Gooberman** » Tue Feb 03, 2009 6:34 pm

Spidey wrote: Would that make you happy?

Like 10 cents in going to make all that much difference to your bottom line, but could be the difference in the very existence of them.

Tell that to the trucking industry, in which almost all stores depend on, groceries, cars, clothing, electronics, Amazon/Internet, etc. Tell that to the airline industry, which, ok, that one has been poorly managed for years....but still, tell that to the trucking industry.

CUDA · Post by **CUDA** » Tue Feb 03, 2009 9:48 pm

Gooberman wrote:
Spidey wrote: Would that make you happy?

Like 10 cents in going to make all that much difference to your bottom line, but could be the difference in the very existence of them.
Tell that to the trucking industry, in which almost all stores depend on, groceries, cars, clothing, electronics, Amazon/Internet, etc. Tell that to the airline industry, which, ok, that one has been poorly managed for years....but still, tell that to the trucking industry.

let the Trucking Industry complain to the Government, maybe they could convince them to drop the 50+ cent a gallon tax

Spidey · Post by **Spidey** » Tue Feb 03, 2009 11:08 pm

Sure Goob, every penny counts when you have to buy huge amounts of something to do your business. But isn’t a bit disingenuous, to criticize what is one of the smallest contributors to the price of fuel (profit) and ignore the major factors?

fliptw · Post by **fliptw** » Wed Feb 04, 2009 3:49 pm

in short: other people's profits are a sin.

those in this thread whom moan about Exxon's profits will never bedevil their own profits.

Will Robinson · Post by **Will Robinson** » Wed Feb 04, 2009 8:58 pm

fliptw wrote:in short: other people's profits are a sin.

those in this thread whom moan about Exxon's profits will never bedevil their own profits.

I think I should be able to have a profit margin in line with my competitors but I don't think I should be able to manipulate the market demand of my product driving my profits through the roof by fueling speculation in the futures market every time an arab or jew sneezes in the middle east....

Price fixing I say.

Price fixing I say.

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