Exxon 2008 Annual Report Download - page 35

2008 Results and Highlights
Industry-leading workforce safety was achieved through
continued focus on operational excellence.
Earnings were $3.0 billion,
down 35 percent from the 2007
record. ExxonMobil continued to benefit from our global
business portfolio, high degree of integration, and
feedstock advantages. Earnings from our less-cyclical
specialty businesses exceeded $1 billion for the second
consecutive year.
Return on average capital employed was 20 percent,
down from 34 percent in 2007. ExxonMobil Chemical returns
continued to exceed the average of our major chemical
competitors. Over the last 10 years we achieved an average
return of 18 percent while our competitors averaged
8 percent. It also marked the fifth consecutive year above
a 20-percent return.
Prime product sales of 25 million tons were 9 percent
lower than 2007, as lower global demand and broad supply
chain inventory de-stocking in the second half of the year
challenged sales.
Revenue was $55 billion.
Chemical capital expenditures were $2.8 billion,
as construction progressed on world-scale growth projects in Fujian, China,
and Singapore. We continued selective investment in specialty business growth and for high-return efficiency projects.
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VERSION
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Fancher฀/฀Controllers
Feb.฀19,฀2009
FILE฀INFO
LAST฀FILE฀CHANGE฀MADE฀BY
89A฀XOMF-
ChemicalROCE.ai
Carol Bill
IN฀F&O฀ON฀PAGE
IN฀SAR฀ON฀PAGE
Note:
Includes฀link฀file
฀ "XOM"฀ "Competitors"
Competitors
XOM
ExxonMobil Major฀Chemical฀Competitors(1)
(1) Includes the chemical segments of Royal Dutch Shell, BP (through 2004),
and Chevron, as well as Dow Chemical, the sole publicly traded
chemical-only competitor with a significant portfolio overlap. Competitor
values are estimated on a consistent basis with ExxonMobil, based on public
information.
1995 96 97 98 040302010099 05 06 07 2008
35
30
25
20
15
10
5
Return on Average Capital Employed
Chemical฀Outperformed฀Competition
Across฀the฀Business฀Cycle
(percent)
IS฀IN
SAR฀and฀F&O
CHEMICAL COMPETITIVE ADVANTAGES
Portfolio฀Quality฀•฀ Our unique mix of Chemical businesses
delivers superior performance relative to competition
throughout the business cycle.
Global฀Integration฀•฀ We continue to identify and capture
synergies with the Upstream and Downstream. Benefits
are derived from the physical integration of sites, feedstock
integration, coordinated planning, global networks, shared
services, and best-practice sharing.
Discipline฀and฀Consistency฀•฀ Our consistent and relentless
focus on all aspects of operational excellence has produced
industry-leading practices and systems.
Value฀Maximization฀•฀ Our proprietary technology has led
to the successful implementation of lower-cost processes,
faster sales growth of higher-value premium products, and
increased sources of advantaged feedstocks.
Long-Term฀Perspective฀•฀ We use a highly structured capital
management approach to ensure that we invest in projects
with feedstock, technology, and marketing advantages that
can compete in the toughest market environments.
CHEMICAL STATISTICAL RECAP 2008 2007 2006 2005 2004
Earnings (millions of dollars) 2,957 4,563 4,382 3,943 3,428
Prime product sales(1) (thousands of metric tons) 24,982 27,480 27,350 26,777 27,788
Average capital employed(2) (millions of dollars) 14,525 13,430 13,183 14,064 14,608
Return on average capital employed(2) (percent) 20.4 34.0 33.2 28.0 23.5
Capital expenditures (millions of dollars) 2,819 1,782 756 654 690
(1) Prime product sales include ExxonMobil’s share of equity-company volumes and finished-product transfers to the Downstream. Carbon-black oil volumes are excluded.
(2) See Frequently Used Terms on pages 44 through 45.
E X X O N ฀ M O B I L ฀ C O R P O R A T I O N ฀ •฀ 2 0 0 8 ฀ S U M M A R Y ฀ A N N U A L ฀ R E P O R T 33