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More on Exxon
Posted by: Dale Franks on Tuesday, February 12, 2008

I also want to point out, as an addendum to McQ's point below, that the $11 billion quarterly profits—while a large number taken by itself, isn't the full story at all.

Last year, Exxon had $404.55 billion in sales, and ended up with $40.61 billion in profits. That's a net profit margin of 10.04%. Compare and contrast with the companies below:

Microsoft
Sales: $57.90 Bil
Income: $16.96 Bil
Net Profit Margin: 29.29%

3M
Sales: $24.46 Bil
Income: $4.10 Bil
Net Profit Margin: 16.97%

Monsanto
Sales: $9.12 Bil
Income: $1.08 Bil
Net Profit Margin: 12.11%

General Electric
Sales: $172.74 Bil
Income: $22.47 Bil
Net Profit Margin: 13.01%

Wells Fargo
Sales: $35.18 Bil
Income: $8.06 Bil
Net Profit Margin: 20.45%

We can keep going, but what's the point?

So, yes, $40 bil a year is a big number. But it represents only 10% of revenue. All of the rest goes to pay bills, or the government. in other words, for every dollar of sales that Exxon makes, anywhere in the world, they get to keep one thin dime.

That's what makes Obama's remarks so reprehensible. The only reason that Exxon rakes in the obscene profit of $40 bil a year is because they sell nearly half a trillion dollars in oil every year. That $40 bil profit represents one dime in profit for every dollar of sales.

But, a 10% profit is just too much for Barack Obama.

I guess his Houston volunteer office was displaying the right flag, after all.
 
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Comments
Can’t you see how the children are suffering and how far $40,000,000,000 of blood-drenched, caplitalist-pig-obtained money could go to alleviate that suffering? We don’t have time for statistics or conceptual thought while the children suffer!

 
Written By: Edward Roberts
URL: http://
It’s sort of like when conservatives talk about welfare cheats. It’s an easy target, but when you look at it, welfare cheating and corporate greed aren’t the massive evils that either side makes them out to be. But politicians on the right will complain about lazy cheats on welfare while politicians on the left will complain about greedy corporations raking in the profits. Ah, politics!
 
Written By: Scott Erb
URL: http://faculty.umf.maine.edu/~erb/blog.htm
Just more proof that Obama is as big a hypocrite as his opponents. He is featured on http://www.hypocrisy.com, and it’s a very good article.
 
Written By: Adrian
URL: http://www.hypocrisy.com
Questions you’ll never hear asked or answered:

How much profit is too much? Is that amount dependent on the amount of revenues that a company generates?

Is there a maximum dollar amount of net income that a company should be allowed to earn in a fiscal year?

What percentage of a company’s revenues is the maximum it should be allowed to retain as net income after taxes?

Does that percentage depend on the industry in which the company operates?

Is there a maximum percentage — of either revenues or net income before taxes — that the federal government should take from a company in taxes?

Is there a maximum percentage of a person’s earnings that the federal government should be allowed to take in taxes? (FYI, if you’re in the 25% tax bracket and below the FICA cap, the federal government takes about 40% of the next dollar you earn [including the employer’s FICA and Medicare contributions]. I’ll bet most Democrats say that that’s not enough.)

Is there a maximum amount in salary, benefits, dividends and capital gains that the federal government should allow an individual to earn, or keep, in any year?
 
Written By: DIffus
URL: http://
Another question I’d like to see asked of Hillary or Barak...

’Exxon makes about $0.30 cents per gallon of gas in profit. State and Federal taxes run anywhere from $0.35 to $0.50 cents per gallon. Is it fair to demean the oil companies when government is taking a bigger piece of the pie, with zero costs?’
 
Written By: meagain
URL: http://
It’s sort of like when conservatives talk about welfare cheats.
Except it’s not. "Welfare cheats" take something to which they have no right or entitlement, often by grossly misrepresenting their financial and/or social situations. They also produce no tangible effects to anyone but themselves by their efforts. Exxon puts a good deal of effort and expense into their measly 10% profit margin, by contrast. And the benefits of their efforts are myriad to their shareholders (Did you look at the top holdings of your mutual funds lately?) and customers.
 
Written By: D
URL: http://
Those profits won’t be taken. Oil companies will pay more taxes to the government. Where will they get the money? From everyone who buys their product, or everyone who buys anything transported by their product.

In other words, a vote for the Democrat is a vote for higher gas prices. Do me a favor. Don’t complain when you get what you asked for.

If that doesn’t work, they can consider nationalizing the oil companies. Think of every gas station run like a DMV. Once they pump the Strategic petroleum Reserve dry, you won’t need to worry about gas prices. There will be none available at any price.

 
Written By: MarkD
URL: http://
It’s sort of like when conservatives talk about welfare cheats.
Except it’s not...
Well, you know, to be a centrist, you simply must talk of the left and right in complete moral equivalents. Lest you be thought of as not, uh, centrist. You point to a fact that does not comport with the populist script and so must be thrown out. Sorry.
 
Written By: Rob
URL: http://
It’s sort of like when conservatives talk about welfare cheats.
Except that Exxon provides value to others, which is why it makes a profit.

Welfare recipiants are not providing value to anyone else for that welfare. And that’s ALL people on welfare, not just the cheats . . .

 
Written By: Don
URL: http://
As I noted in the other thread, "good" companies like Google (which has tarnished its image somewhat of late) and Apple show larger profit margins than Exxon. Google showed a profit margin of 35% last year.

I bet they’ve earned them, though.
 
Written By: Slartibartfast
URL: http://
Plus, it’s only three and a half billion. Maybe it’s the amount that bothers.
 
Written By: Slartibartfast
URL: http://
"That’s what makes Obama’s remarks so reprehensible."

What remarks? Context, please.
 
Written By: None_None
URL: http://
What’s not mentioned here is how they’ve "earned" that half a trillion in revenue. It’s disingenuous to look at profit, when revenue is the real ticket. They’ve made such money by inflating the price of oil. A war in the Middle East, a refusal to invest more in new refineries, etc.

All of this was likely a part of the Cheney energy policy attended by Big Oil, and kept quiet with an unprecedented lawsuit that went all the way to the Supreme Court to keep it hushed up. If it wasn’t ripping off the US citizen, why keep it quiet?

Big Oil is now an oligopoly sanctioned by the curent administration. For all the talk of the welfare cheats, they haven’t gotten us into an unwinnable war with trillions spent, fought global warming, and wanting to despoil the AWR. Big Oil has.
 
Written By: Jeff
URL: http://www.jeffreymarks.com
’...Cheney and his secret oil meeting...’ ’...How can Bush sleep at night...’ Sheesh. Enough, already. Is anyone here adept enough with their own investments to actually look at a fund statement? Exxon (and their ilk) ARE, indeed, garnering obscene profits while we struggle to fill our gargantuan gas tanks - but - the REAL reason gasoline is over $3.00 (well over) a gallon is not because of supply and demand in a historic sense. Not at all. Peak oil? OPEC crunching us? Nonsense - your hedge fund manager and your ’team playing’ speculative buyer are more the cause of increased energy costs than any corporation is and the government - if they are to shoulder ANY of the blame - can only be found guilty of not regulating your retirement fund management to a point that would actually strangle the economy. Bottom line? Suck it up. It will never change no matter WHO the president is or how much oil OPEC is forced to sell us. The price we pay is here to stay. Hopefully you’ll enjoy your retirement. Enron? Nothing compared the shafting we’re ALL taking now. Hundreds and hundreds of BILLIONS of dollars gone and NOT for the war - no, this money is in the pockets of those who truly run things. Do some research.
 
Written By: BtO
URL: http://

 
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