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One of the big stories today is ExxonMobil's (XOM) record earnings. For 2007, the company earned $40.6 billion, the most ever for an American company. For the fourth-quarter, the earned $11.7 billion, which is also a record.

Despite the huge numbers, it's really not as impressive as it sounds. First, XOM's net increased by less than 3% last which is less than the growth of the economy. In real terms, this year's profit is less than last year's. Thanks to fewer shares, EPS rose by 10.2%. Also, the company's profit margins slipped slightly from 10.5% to 10%. Finally, the company paid over $100 billion in combined taxes for the year.

Posted by edelfenbein at February 1, 2008 3:07 PM