Somali Islamists threaten 'jihadi war' against Ethiopia

[Vulcan]

Originally Posted by Azure

Very true. But you must also realize that a profit of lower then 10% is NOT a killing.

In fact, for a company that big, its terrible.

It is when it's not your money you're spending. Lend me a million bucks and I'll pay you back 900,000. Sounds good to me.

[Azure]

Originally Posted by Vulcan

It is when it's not your money you're spending. Lend me a million bucks and I'll pay you back 900,000. Sounds good to me.

My money? Haliburton provides over 11 billion dollars of service to the US Military in Iraq; out of that money, or contract, they take home 330 million in profits. For a company that big, with that many people hired, I would say it is essential to make at least 1 billion dollars profit.

[Iowa_Flames_Fan]

Originally Posted by Azure

My money? Haliburton provides over 11 billion dollars of service to the US Military in Iraq; out of that money, or contract, they take home 330 million in profits. For a company that big, with that many people hired, I would say it is essential to make at least 1 billion dollars profit.

But their costs are covered by the government--which effectively makes that more profitable, especially when you have them reporting higher costs than what they actually spent and other such shenanigans. I think government contracts are a slightly different animal.

After all, KBR's business is comprised almost exclusively of government military contracts. Clearly, somebody thinks that 10% margin is pretty good, or they wouldn't keep doing it.

[Vulcan]

Here Azure, follow the bouncing ball.
Say you want to build a house.
I agree to build your house at cost +10%.
You give me a line of credit of $1M to cover materials, machinery and labour.
I set my personal labour rate at $200/hr and my employees at $70/hr although I only pay them $25/hr.
I buy all my materials at contractors rate and charge you the highest retail price I can find or feel I can get away with.
I rent my machinery to you at $300/hr when it only costs me $100/hr.
I don't care to much how soon the job gets done because the longer it takes the longer I'll be collecting a fat rate of pay.
This goes for my employees as well.
When the job gets done, miraculously it comes out at exactly $1M, you have a 1,000 sq.ft. house and owe me the contractor another 10% plus bonus.
With my various overcharges I come out with a $400,000 profit although my company only reports a 10% profit. This I do without stepping over the line.

did I mention overtime and my brotherinlaws subcontracting business.