Exxon posts most lackluster "windfall" profits in history

I couldn't help but comment on the Exxon story... When I got home I flipped on the news, and it happened to go to the local ABC affiliate here in SoCal. The first story I saw was on Exxon's record profits for the 4th quarter. They put on the weary consumers, tired of high gas prices and let them vent... "I don't know if it's because of the war [in Iraq], or because of Katrina... We're being gouged" was the sentiment of all those whose opinions were aired. They even had a tax advocacy group spokes-hole on who blamed the commodity market and Katrina. "They control the quantities... they control the supply..." Blah blah blah. They finally put on a Exxon representative who made two good points in her 10 seconds of air time. One, that Exxon is a global company, so the profit reflects global earnings, not just the money of hardworking Americans (Duh people, you think our gas prices are bad. And two, Exxon's profits are on par with other corporations. Good points. How on par is Exxon? Boots and Sabers (via Say Anything) takes a closer look at the numbers: Exxon Mobil earned a profit of $36.13 billion on the year. This is off of revenue of $371 billion. That is a profit margin of 9.78%. Exxon Mobil is earning less than a 10% profit. That is not obscene. Let’s look at the profit margins for some other businesses: Profit margin on a typical new home? 9.8% Big telecom? 35% The Left’s darling, Apple? 9.9% So while $10.71 billion is a big, record breaking number, it's really not that much profit when you look at the bigger picture. And if you're an investor, isn't the whole goal of a successful company to make a profit? Since Exxon is a corporation, who's really making all that money? Their investors; you and me (well you, if you were smart enough to buy their stock. I unfortunately had to sell all mine to help cover the closing costs for the fetching Mrs. Wookie's and my new house. The housing market better keep increasing in value at that 9.8% clip.) ABC/AP - The company's earnings amounted to $1.71 per share for the October-December quarter, up 27 percent from $8.42 billion, or $1.30 per share, in the year ago quarter. The result topped the then-record quarterly profit of $9.92 billion Exxon posted in the third quarter of 2005. Up 27% compared to a year ago. That sounds like a pretty good investment. Michael Medved today made the point that for much of the 80's Exxon was in the red. If I were a stockholder then, I'd have been pissed. Maybe we need a diagram to help show where all that money at the pump really goes. 43% is based on the price of a barrel of oil, and if you check the link it has 2000 barrel prices which have doubled since then thanks to in large part (drumroll please...) OPEC, our good buddies in the Middle East. So, wow, this "War for Oil" has done a number on getting us super cheap gas, huh. And if you think our prices are outrageous, check out the rest of the world. And, hello, does everyone see that big ol' 31% that goes right to the government? The government makes more off of the gas you pump at the station than the oil companies do. So where's the outrage? So is less than 10% profit for the quarter really big enough news for the liberals to get all whiny about, or is that a stupid question?