Earnings: Exxon Mobil profits drop 66%; Genworth loses $50 million
Published: July 31, 2009
Updated: July 31, 2009
Dow Jones firm: Exxon Mobil
Exxon Mobil Corp. yesterday reported its lowest profit in nearly six years, a 66 percent plunge from the second quarter a year ago as the world's biggest publicly traded oil company confronted sharply lower crude and gas prices and anemic demand for refined products.
For the king of corporate profit records, it marked the third straight quarter for lower year-over-year earnings, providing a clear picture of how demand for oil and gasoline has evaporated.
Exxon Mobil, based in Irving, Texas, said earnings for the April-June period came to $3.95 billion, or 81 cents a share. That was down from $11.68 billion, or $2.22 a share, a year ago, a record at the time.
Excluding one-time items, net income in the most-recent quarter amounted to $4.09 billion, or 84 cents a share.
The latest result missed the average Wall Street profit forecast by a wide margin. Analysts polled by Thomson Reuters were looking for net income of $1.02 cents a share. Those estimates typically exclude one-time items.
Revenue fell 46 percent to $74.5 billion from $138.1 billion a year ago. Analysts, on average, had forecast revenue of about $71.3 billion, Thomson Reuters said.
The substantial profit falloff was no surprise given the steep drop in oil and natural gas prices from a year ago. Major integrated oil companies ConocoPhillips, BP and Royal Dutch Shell already have reported profit declines ranging from 53 percent to 76 percent for the second quarter.
Yet the size of Exxon's decline is sure to catch investors off guard. It marked the company's lowest quarterly showing since it earned $3.65 billion in the third quarter of 2003.
Company shares fell 71 cents to close at $70.72. -- The Associated Press
Major local employer: Genworth
Genworth Financial Inc. reported a second-quarter net loss of $50 million, or 11 cents per share, compared with a net loss of $109 million, or 25 cents per share, in the year-earlier quarter.
Net operating income for the quarter was $9 million, or 2 cents per share, compared with $212 million, or 49 cents per share, in the second quarter of 2008.
The Henrico County-based insurer's results included operating income of $127 million from its retirement and protection division and $87 million from its international division. That was offset by operating losses of $134 million in the U.S. mortgage-insurance segment and $71 million in corporate and other units.
The results also include a $36 million reversal of tax benefits reflected in the first quarter, as required by accounting standards. The impact of foreign exchange on net operating income was an unfavorable $22 million.
"Genworth made substantial progress improving both operating results and balance sheet strength," said Michael D. Fraizer, chairman and chief executive officer.
The company's stock closed at $7.11, down 45 cents. -- Carol Hazard
Advertisement
Reader Reactions
Wutchdoctor, Big oil has delivered gasoline to the American people at about half the price of what gasoline costs in other countries, such as those throughout Europe. The Europeans aren’t filing personal bankruptcy b/c of higher gas prices. They also are not living in 4000 sq foot homes with a family of 4, nor do they eat out as much or stay up to date with all the current electronic gadgetry as we Americans do. I think most Americans have lost their way and need to return to the more basic fundamentals of modest living.
Ha! Me a democrat or a member of the media?!? Man you really are ignorant, I am a registered republican have been all my life but have since switch to the Libertarian party my friend. Let me ask you this when all these people you feel so bad for where living high on the hog do you think any of them bothered to save any rainy day money? What happened to having at least six months living expenses saved up? I am sick and tired of people in the country asking to get bailed out!!! Show me one thing the government has ever done right, and now these idiot democrats are trying to take over health-care. I hope every person that voted for obama is just wrenching both fist right now asking themselves what did I do? People complain about 8 years of Bush well my friends if we get 8 years of obama we will all be living under socialism! The only thing the democrats care about is votes that it is, all the idiots that keep getting voted in care about is votes they have the best health-care in the world the could care less what we have. They pander to people they know are easily manipulated and buy their votes by promising them handouts which just sickens me. I am a veteran so it infuriates me seeing what obama has done already to this country in less than six months!! All these idiots think he is the chosen one, please wake up people!
Workhard? I can’t believe that you have been so taken in by the propaganda that you don’t believe. You must be a member of the media or a Democrat. I am not talking about the idiots who took out loans they could never repay or binge spenders, but about all the good people who were spending money they didn’t have to drive their cars to their jobs and thereby using up their available credit. When the bubble burst they find that they now have no job to go to and no way to pay for all the gas they put on their credit cards after they filled up their gas cards. If you don’t think this is real you are really delusional.
witchdoctor, That is the most ignorant thing I have read all week, don’t get me wrong not taking up for big oil but how can you blame big oil for this mess let alone people living beyond their means!! What ever happened to working and saving for things before you buy them?!?
If you can’t save and pay cash you don’t need to buy it! A house maybe but cars and all the other crap that people buy please if you are buying things you don’t need on credit you get what you deserve!! If you loose your job and can’t pay for all that crap that you bought on credit that is not big oil’s fault or anyone else for that matter, it is your fault alone! I never post on these stupid boards but after reading yours I had to create a new account just so I could reply to your asinine comment. It’s thinking like yours that leads to people relying on the Government to bail them out of everything! What ever happened to personal responsibility?!?
Oil company “losses” couldn’t happen to a better group of people. They are the ones who caused the depression in the first place, forcing consumers to run up their credit to the absolute limit just trying to get to work. What we need is at least another year of the same kind of losses for these leaches and for the gas prices to fall another 50%. It won’t make it right but it will help us get around trying to find work, since about 50% of us are un- or underemployed.
Post a Comment(Requires free registration)
- Please avoid offensive, vulgar, or hateful language.
- Respect others.
- Use the "Flag Comment" link when necessary.
- See the Terms and Conditions for details.
Advertisement