Tuesday, April 29, 2008
Cash Cow, BP & Shell Rack It In!
Cash cow: In business, a cash cow is a product or a business unit that generates unusually high profit margins: so high that it is responsible for a large amount of a company's operating profit. This profit far exceeds the amount necessary to maintain the cash cow business, and the excess is used by the business for other purposes.
BP's pre-tax profits rose 48 per cent in the first quarter to $6.6 billion (£3.3 billion) while Shell increased its profits 12 per cent to a record $7.8 billion (£3.9 billion).
Source: Times Online UK
I guess cashing in on the energy crisis is really working for some! Congratulations oil tycoons!
Since most of us are not in the oil industry, you might find the rise in oil prices (which effects more than just gasoline) quite frustrating to say the least. If you're looking to create your own cash cow, help the environment and your bank account you might want to take a look at this article from Car and Driver on veggie oil conversion.