Statistics Canada has just released the preliminary second quarter 2010 issue of the Quarterly Financial Statistics for Enterprises.

Highlights

Operating profits for Canadian corporations amounted to $61.7 billion in the second quarter, down 1.8% from the previous quarter.

This decrease followed three consecutive quarterly increases.

Overall, profits were down despite the fact that 15 of 22 industries reported higher profits.

Declines were led by corporations in the insurance industry, as well as the oil and gas industry.

In the non-financial sector, profits decreased by 1.5% to $46.4 billion, while among financial industries profits declined 2.7% to $15.3 billion.

However, on a year-over-year basis, profits in both sectors in the second quarter were roughly 28% above the levels in the second quarter of 2009.

Note:
Quarterly profit numbers referred to in the text are seasonally adjusted and are in current dollars. The quarterly financial estimates for the first quarter of 2010 have been revised.

Quarterly financial statistics for enterprises are based upon a sample survey and represent the activities of all corporations in Canada, except those that are government controlled or not-for-profit. An enterprise can be a single corporation or a family of corporations under common ownership and control, for which consolidated financial statements are produced.

Profits referred to in this analysis are operating profits earned from normal business activities. For non-financial industries, operating profits exclude interest and dividend revenue and capital gains/losses, whereas for financial industries, these are included along with interest paid on deposits.

Operating profits differ from net profits, which represent the after tax profits earned by corporations.

Non-financial sector

Operating profits for oil and gas extraction and support activities declined 13.9% to $4.3 billion between the first and second quarters of this year. The second quarter was characterized by a decline in exports and relatively stable oil prices.

Profits for retailers fell by 6.3% to $3.8 billion. Much of this decline came from clothing and department stores, where profits were down by $141 million. Similarly, operating profits in the wholesale trade industry decreased by 3.7% to $4.9 billion.

Operating profits for manufacturers remained relatively flat in the second quarter, rising 0.2% to $10.4 billion. This followed four consecutive quarters of growth.

Growth in motor vehicle and parts manufacturing, and computer and electronic product manufacturing largely offset the decline in profits in chemical, plastics and rubber products manufacturing, and primary metal manufacturing.

Profits in the mining and quarrying industry increased by $401 million to just under $2.0 billion, as certain commodity prices rose.

Financial sector

Profits of insurance carriers and related activities declined by $868 million to $1.6 billion.

Depository credit intermediation, mainly chartered banks, and non-depository credit intermediation tempered the decline with increases in profits of 5.3% and 13.1%, respectively.
For more information, please visit Statistics Canada:
http://www.statcan.gc.ca

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Tags: Enterprises, Financial, Statistics