Savings Experiment: Snow Removal
The Money Man Behind Rick Santorum: Who Is Foster S. Friess?
Royal Dutch Shell's (RDS.A) profit fell a whopping 75% in the fourth quarter. Earnings came in at $1.18 billion.
Shell's profit margins were hit by slower fuel demand caused by the worldwide recession. There were also increased costs from refinery start ups in the Middle East and Asia.
As a consequence, Shell is cutting its workforce by 1,000 and cutting refinery output by 15%. The company is selling off or closing 8% of its 3.87 million barrels per day refining capacity.
Shell said that its oil and gas production fell 2.4% in the quarter compared with last year, to 3.3 million barrels of oil equivalent per day.
Gas amounts for 47% of Shell's production. Here too, Shell is in heavy competition with U.S. companies. Margins have fallen on natural gas, putting additional pressure on the company.
The question for investors is: Has Shell cut enough for a turnaround?
Would you buy Shell? Sometimes investors look for stocks that have been beaten down, hoping for a turnaround.
Goldman Earnings Sink After Buffett Dividend
Johnson & Johnson's Income Falls 23%
Burberry Shares Leap on Sales Update
