Today’s Password Word Is: Excessive - Tire Review Magazine

Today’s Password Word Is: Excessive

Wall Street, get this, was upset that ExxonMobil failed to reach its profit target for the second quarter.

Because, apparently, $12 billion in net, net, net profit just isn’t enough.

So these accounting and speculation junkies had a hissy. Well, screw ‘em.

I saw a flack on ABC yesterday trying to explain that ExxonMobil’s record quarterly profit was not, in fact, excessive. He claimed that the ratio of net profit to sales was below that of countless other sectors, so ExxonMobil was actually hurt! Screw him, too.

I’m not sure what the true definition of “excessive” is anymore. When one company racks up more than $30 billion in net profits for a year – after all the bills and taxes have been paid – my brain says that is excessive. When that company’s entire industry pulls down more than $150 billion in net profits, again, I’m thinking excessive. Put those net profits against the high-flying costs for gas and diesel and the negative impact it has had at every level of the economy and, well, excessive.

But apparently I’m wrong.

The tire industry isn’t doing so great, in large part because of the growing costs of raw materials (derived from oil) and energy costs (again, that oil stuff) and the impact of a worsening global economy (driven, of course, by high oil and fuel prices). Excessive costs that cannot be offset by sales.

The auto industry just reported their quarterlies. Guess what? Excessive losses. $15 billion by GM alone.

Like to see what ExxonMobil’s profits might be without cars and tires. Doubt it would be excessive.

If you have comments to share, send to me at [email protected].

– Jim Smith

You May Also Like

Michelin sponsors WWII vets’ return to Normandy for D-Day 80th anniversary

WWII vets will participate in several parades, ceremonies and celebrations during their 10-day tour of the Normandy region.


Michelin North America has partnered with the Best Defense Foundation and Delta Air Lines to arrange for 60 World War II veterans to return to Normandy, France, for the 80th anniversary of D-Day. The veterans, accompanied by volunteers from Michelin, Delta and Best Defense, will take a chartered flight on June 2. They will participate in several parades, ceremonies and celebrations during their 10-day tour of the Normandy region. June 6 marks the 80th anniversary of the largest seaborne invasion in history, beginning the liberation of France and ultimately leading to the end of the war in Europe.

McCarthy Tire Service partners with Truckers Against Trafficking

McCarthy Tire Service has launched a company policy aimed at identifying and reporting potential human trafficking situations.

GRI adds 23 SKUs across agriculture, construction tire segments

The expanded product portfolio includes tires designed for tractors, implements, and sprayers, as well as telehandlers, graders and light trucks.

The strategy for 100% sustainable tire manufacturing

Enhancing energy efficiency and the transition to green energy sources takes viewing manufacturing operations with a wide-angle lens.


Other Posts

TIA’s EV Advisory Council tours Midtronics HQ

The agenda included a council meeting, a facility tour and a demonstration led by the Midtronics EV platform team.

Anyline to host the T.I.R.E. Summit

The event will include panel discussions on technology and innovation in the industry.

Radar Tires signs multi-year contract with Singapore Golf Association

Omni United said this partnership with SGA is part of its commitment to nurturing upcoming talent in Singapore.

Cardinal rules for servicing custom wheel assemblies

Pulling off special wheel and tire packages requires serious expertise from your team.

TR-Continental-wheel assemblies