CNN's Velshi Misstates Exxon Earnings
Even when ExxonMobil misses their own earnings estimates, some in the media still express indignation it posts any earnings.
‚ÄúMaybe not a record, but nobody‚Äôs crying poverty,‚ÄĚ said ‚ÄúAmerican Morning‚ÄĚ anchor John Roberts about the ExxonMobil numbers.
CNN business reporter Ali Velshi also got in on the profit bashing shortly before the company‚Äôs earnings were released.
‚ÄúIn about a half an hour I‚Äôll come back and tell you how much money they made and all the happiness will be gone,‚ÄĚ said Velshi in his ‚ÄúMinding Your Business‚ÄĚ segment near the end of the 6 a.m. hour.
In order to make the point that ExxonMobil was earning too much, Velshi compared an investment in the Standard & Poor‚Äôs 500 to an investment in Exxon.
‚ÄúNothing wrong with a 90 percent increase over ten years [referring to the performance of the S&P 500],‚ÄĚ Velshi said on July 26. ‚ÄúBut, ExxonMobil has more than doubled its money and it‚Äôs almost doubled twice in ten years. So just a‚ÄĒa note that while the rest of us have been fueling these profits, as it were, for the last many, many years, some folks have actually been doing okay by it.‚ÄĚ
‚ÄúExxonMobil reporting quarterly earnings of $10.26 billion a share, John. We‚Äôre on this and we‚Äôre going to continue to find out where that money is being made,‚ÄĚ said Velshi during the 8 a.m. hour.
Maligning the oil and gas industry was a theme for ‚ÄúAmerican Morning‚ÄĚ on July 26. Like other journalists have tried to scare viewers with $4 a gallon gasoline predictions, Roberts hyped the threat of higher prices.
‚ÄúAnd some people predicting that we‚Äôre not far away from $100-a-barrel oil,‚ÄĚ Roberts said.
Oil was trading near $77 a barrel on July 26 according to Associated Press. In July 2006, the media were also worried about $100-a-barrel oil as evidenced by a BusinessWeek story. However, after a late summer spike in 2006, oil tumbled and fell to nearly $50 a barrel in early 2007.