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For Exxon Mobil, $10.9 Billion in Profit Disappoints

nytimes.com — The world ’s largest publicly traded oil company, said Thursday that its first-quarter net income rose 17 percent, helped by record high oil prices. But the results fell just short of analyst expectations.

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relic180 86 days ago

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relic180, on 05/01/2008, -0/+2If a company can claim such a huge increase in net profits, is there any question that prices as the pump have been artificially inflated?
- PeppermintPig, on 05/01/2008, -0/+2Yes, there is doubt, actually. The article doesn't distinguish clearly what is disappointing, since they discuss both company goals as well as what stock shares are doing. Also, they cite skyrocketing expenses in relation to inflation.
  
  The biggest issue I see is that 'Record profits' may simply be looking at records as calculated in USD. Given inflation, there is an obvious incentive to increase prices across the board, and oil/gasoline tends to rise first.
  
  They may be greedy for thinking they'd be making more money if they didn't consider lowering prices to increase customer traffic, or assumed the market would not fluctuate.
  
  That doesn't mean prices aren't artificially inflated, because they certainly are.
  
  First off, the cartel sets artificial prices by eliminating competition. Second, domestic gasoline tax artificially inflates the cost.
  
  Heavy government control is the first source of trouble that has lead to these high profits.
  - relic180, on 05/01/2008, -0/+1However, a net profit of 17% would be profit after taxes, and FAR greater than the current rate of inflation. Not to mention, that apparently they had enjoyed an even larger net profit in the forth quarter of last year, so profits are actually DOWN from last quarter... if this isn't a shining example of consumer abuse, I don't know what is.
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For Exxon Mobil, $10.9 Billion in Profit Disappoints

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