Tilted
..
I realize that such things are of little interest to many people, but they interest me so...
Exxon-Mobil made news in 2006 when it reported record quarterly and annual profits ($10.7 Billion for Q4 2005 and $36.1 Billion for FY 2005). It went on to report new record annual profits in 2006, again in 2007, and again in 2008 ($45.2 Billion in FY 2008). Annual profits fell off significantly for 2009 and 2010, but for 2011 they will likely approach (though still fall a bit short of) the 2008 total.
At the moment, I'm more interested in that quarterly profit number that I referred to. Since it posted profits in excess of $10 Billion for the 4th quarter of 2005, Exxon-Mobil has posted quarterly profits in excess of $10 Billion eleven more times (with the largest being $14.8 Billion in the third quarter of 2008). This past quarter likely represents the 13th time it's done so, we'll know for sure later this month. As far as I'm aware, Royal Dutch Shell is the only other private company to have posted a $10 Billion plus profit quarter. (*) Not surprisingly, that was in 2008. British Petroleum came close to doing so in 2008.
Why those companies were able to reach that level of profitability is probably, for most people, readily apparent: They've grown (through merger or otherwise) into huge companies and they've benefitted from very high commodity prices. These aren't great business stories so much as they are big business stories. There's nothing truly remarkable (i.e. with specific regard to Exxon-Mobil) about the way Exxon-Mobil has achieved the profit success it has in recent years (other than, some might argue, how it was able to win approval for the merger of Exxon and Mobil some years ago).
Not so when it comes to Apple, and that's the point I'm getting to. Just as Exxon-Mobil will, Apple will report its results for the fourth of calendar year 2012 later this month (for Apple, it will actually be Q1 of its FY 2012). I believe there's a chance - one that I would put at about 40/60 - that it will join Exxon-Mobil and Royal Dutch Shell in the $10 Billion plus profit quarter club.
First, Wow! The reality that that's possible is, in itself, amazing. We're talking about a consumer electronics device producer / retailer that sells a limited range of products and services. Whether one likes Apple products, or the Apple way of doing things, or not, it is hard to deny the remarkable and impressive character of its business story. It has already surpassed global tech giant Microsoft and retail giant Wal-Mart when it comes to profitability and market value. Could it possibly have surpassed Exxon-Mobil in profits in this past quarter, even with oil prices as high as they are? I'm not looking for that to have happened, but I think it is within the realm of possibility. Wow, again! For someone like myself that follows financial matters in some detail, and the results and metrics of various individual companies, that comes close to being a mind-blowing realization.
Anyone want to hazard a guess as to whether Apple hit $10 Billion in profits last quarter? Or, did the unthinkable and beat the tremendous profit machine that is Exxon-Mobil? Regardless - whether it posts $8.3 Billion or $10.9 Billion - it will represent a quarter that stands out in American corporate history, even more so I believe, all things considered, than any that Exxon-Mobil has turned in. Steve Jobs may not only be the Walt Disney and possibly the Thomas Edison of our times, he may be the Henry Ford of our times as well. And that's where, in my opinion, he's gotten far too little credit - he's perhaps the greatest industrialist of my lifetime, though I doubt he'd cherish or even accept the title.
I would like to make this point though: No one should take my comments as an endorsement of Apple stock. A company being great doesn't equate to its stock being great at a particular time, the latter depends in large part on the current pricing of the stock, which I'm not commenting on now. Even accepting that a given company is great, it can have a stock evaluation that is very unattractive just as it can have a stock evaluation that is very attractive.
(*) If anyone knows of another private corporation that's posted a $10 Billion plus profit quarter, please feel free to point it out to me. I didn't do an exhaustive search, I was going mostly from memory. If I'm wrong, I'll appreciate the correction.
Exxon-Mobil made news in 2006 when it reported record quarterly and annual profits ($10.7 Billion for Q4 2005 and $36.1 Billion for FY 2005). It went on to report new record annual profits in 2006, again in 2007, and again in 2008 ($45.2 Billion in FY 2008). Annual profits fell off significantly for 2009 and 2010, but for 2011 they will likely approach (though still fall a bit short of) the 2008 total.
At the moment, I'm more interested in that quarterly profit number that I referred to. Since it posted profits in excess of $10 Billion for the 4th quarter of 2005, Exxon-Mobil has posted quarterly profits in excess of $10 Billion eleven more times (with the largest being $14.8 Billion in the third quarter of 2008). This past quarter likely represents the 13th time it's done so, we'll know for sure later this month. As far as I'm aware, Royal Dutch Shell is the only other private company to have posted a $10 Billion plus profit quarter. (*) Not surprisingly, that was in 2008. British Petroleum came close to doing so in 2008.
Why those companies were able to reach that level of profitability is probably, for most people, readily apparent: They've grown (through merger or otherwise) into huge companies and they've benefitted from very high commodity prices. These aren't great business stories so much as they are big business stories. There's nothing truly remarkable (i.e. with specific regard to Exxon-Mobil) about the way Exxon-Mobil has achieved the profit success it has in recent years (other than, some might argue, how it was able to win approval for the merger of Exxon and Mobil some years ago).
Not so when it comes to Apple, and that's the point I'm getting to. Just as Exxon-Mobil will, Apple will report its results for the fourth of calendar year 2012 later this month (for Apple, it will actually be Q1 of its FY 2012). I believe there's a chance - one that I would put at about 40/60 - that it will join Exxon-Mobil and Royal Dutch Shell in the $10 Billion plus profit quarter club.
First, Wow! The reality that that's possible is, in itself, amazing. We're talking about a consumer electronics device producer / retailer that sells a limited range of products and services. Whether one likes Apple products, or the Apple way of doing things, or not, it is hard to deny the remarkable and impressive character of its business story. It has already surpassed global tech giant Microsoft and retail giant Wal-Mart when it comes to profitability and market value. Could it possibly have surpassed Exxon-Mobil in profits in this past quarter, even with oil prices as high as they are? I'm not looking for that to have happened, but I think it is within the realm of possibility. Wow, again! For someone like myself that follows financial matters in some detail, and the results and metrics of various individual companies, that comes close to being a mind-blowing realization.
Anyone want to hazard a guess as to whether Apple hit $10 Billion in profits last quarter? Or, did the unthinkable and beat the tremendous profit machine that is Exxon-Mobil? Regardless - whether it posts $8.3 Billion or $10.9 Billion - it will represent a quarter that stands out in American corporate history, even more so I believe, all things considered, than any that Exxon-Mobil has turned in. Steve Jobs may not only be the Walt Disney and possibly the Thomas Edison of our times, he may be the Henry Ford of our times as well. And that's where, in my opinion, he's gotten far too little credit - he's perhaps the greatest industrialist of my lifetime, though I doubt he'd cherish or even accept the title.
I would like to make this point though: No one should take my comments as an endorsement of Apple stock. A company being great doesn't equate to its stock being great at a particular time, the latter depends in large part on the current pricing of the stock, which I'm not commenting on now. Even accepting that a given company is great, it can have a stock evaluation that is very unattractive just as it can have a stock evaluation that is very attractive.
(*) If anyone knows of another private corporation that's posted a $10 Billion plus profit quarter, please feel free to point it out to me. I didn't do an exhaustive search, I was going mostly from memory. If I'm wrong, I'll appreciate the correction.
