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IW 50 Best: Exxon Profit Up 38% Despite Health-Care Charges

Rising oil prices help boost earnings for first time since third-quarter 2008.

Exxon Mobil Corp. posted a 38% profit increase in the first quarter bolstered by higher oil prices, though lower than analyst expectations after incurring a charge related to health-care legislation.

Profit increased to $6.3 billion, or $1.33 a share, compared with $4.6 billion, or 92 cents a share, in the year-earlier period.

Revenue rose to $90.3 billion from $64 billion in the year-ago period. Analysts expected earnings of $1.41 per share on revenue of $96.4 billion, according to the Associated Press.

The company's year-over-year profit rose for the first time since the third quarter of 2008. Earnings include a charge of $200 million related to health-care legislation that President Obama signed into law in March, the company said.

Exxon Mobil Corp.
At A Glance

Exxon Mobil Corp.
Irving, Texas
Primary Industry: Petroleum & Coal Products
Number of Employees: 80,700
2008 In Review
Revenue: $466.3 billion
Profit Margin: 9.70%
Sales Turnover: 2.06
Inventory Turnover: 24.98
Revenue Growth: 17.85%
Return On Assets: 18.68%
Return On Equity: 37.14%
Exxon increased oil-equivalent production 4.5% during the first three months of 2010 driven by recent start-ups of operations in Qatar, Exxon CEO Rex Tillerson said in an April 29 statement.

The company's capital and exploration expenditures were $6.9 billion in the first quarter, up 19% from the year-earlier period. During the quarter, the company signed an agreement with the Iraq Ministry of Oil to redevelop and expand an oil field in southern Iraq.

The company's U.S. downstream operations, which includes refining and marketing, recorded a loss of $60 million, down $412 million from the year-earlier period.

The company said it expects to complete the acquisition of natural-gas producer XTO Energy Inc. by the end of the second quarter. In December, Exxon announced an agreement to purchase XTO for $41 billion pending stockholder approval and regulatory clearance. Exxon expects the move will enhance its position in the "development of unconventional natural gas and oil resources."

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