Xom stock hits new high after new CEO
Xom shares climbed after new chief executive announced plans to boost earnings amid a slowing Chinese economy.
The stock jumped 1.6% after the company posted a profit of $3.25 million.
The Palo Alto, Calif., company said its revenue fell for the fourth quarter of 2016 to $3 billion.
The company is the latest U.S. company to announce a restructuring or job cuts in recent months as Chinese authorities tighten controls on imports.
A recent report from Bloomberg News showed Chinese companies were adding a record 709,000 jobs in the second quarter, up from 542,000 in the first quarter.
Xom also reported a record-high profit in April, according to its annual report.
“We are seeing an economic expansion and we expect the Chinese economy to remain robust, which means Xom will be able to continue to generate positive cash flow in the fourth-quarter,” said Mark Weisbrot, chief executive officer of Xom in a statement.
“Xom will continue to pursue opportunities to accelerate the growth of its business and build a stronger financial foundation in order to meet its strategic objectives.”
Xom said its gross profit for the year is expected to be $8.4 billion.
It reported a profit before interest, taxes, depreciation and amortization of $2.8 billion in the year ended March 31.
The firm also said it expects its net income to be about $2 billion.
In a recent earnings call, Weisbartt touted the company’s new stock price.
“Our core value proposition is to provide exceptional value for our shareholders, and we continue to believe this approach will be a positive for Xom,” he said.
The latest stock rally is the first since Weisbardt took over as chief executive.
In January, he announced the company was reducing costs and cutting its workforce by a quarter to help boost earnings.
“It’s very hard to make an investment when you’re losing money,” he told investors.
He later announced the layoffs would be made permanent.
In addition, Weissbrot said last month the company would invest $3 million in a new manufacturing facility that would employ about 2,500 people.
The new facility would be located in China’s far eastern province of Xinjiang.
Weisbellt is also taking a closer look at the state of the U.K. market.
He said he’s looking for ways to create a strong platform to continue expanding into new markets.
He recently met with Prime Minister David Cameron and the CEOs of McDonald’s and Tesco.
He is also considering investing in an airline that is planning to launch flights to Europe from the U.
Bloomberg News reported the company also plans to launch its own online payments service this year.”
This is something we need to do in order for us as a company to grow in the future.”
Bloomberg News reported the company also plans to launch its own online payments service this year.