Canadian corporations earned record operating profits of $262.5 billion in 2007, led by the banking, retail, wholesale and petroleum refining industries, Statistics Canada reported today.

Operating profits rose 7.8% last year, compared with an increase of 8.8% in 2006 and double-digit growth in the preceding three years.

Fourth-quarter operating profits edged up 0.5% to $67.7 billion, following gains averaging 3.7% in the previous two quarters.

About half of the 22 industry groups surveyed by Statistics Canada lost ground in the quarter, with the manufacturing sector reporting the biggest decline.

Consumers continued to spend in 2007, propelling total retail profits to an all-time high of $16.5 billion from $13.6 billion in 2006.

Strong employment levels and higher disposable income helped prop up consumer demand as retail operating revenues jumped 7.5% to $433.2 billion for the year.

Clothing, department and other general merchandise stores fared well, as profits surged 26.3% to $5.6 billion.

Retailers of furniture, home furnishings and appliances pulled in profits of $1.9 billion, up from $1.1 billion in 2006. Record high levels of residential building activity contributed to the demand for household-related merchandise.

Wholesalers earned operating profits of $19.1 billion in 2007, a 12.1% improvement over 2006. Gains were widespread, as all five wholesale industries reported sizable growth in profits.

Manufacturers earned operating profits of $45.0 billion in 2007, up 5.4% from 2006 levels. Much of the gain was concentrated in the petroleum, food and soft drinks, and computers and electrical products manufacturing industries.

Petroleum and coal manufacturers earned record high operating profits of $12.7 billion in 2007, an increase of 17.9% over 2006. Export and domestic sales of petroleum and coal products were up for the year. Profit gains were fuelled by rising petroleum prices and higher refining margins.

Operating profits among food and soft drink producers jumped 22.4% to $5.3 billion in 2007, the strongest growth in three years.

Computers and electrical products manufacturers churned out $3.2 billion in operating profits in 2007, a third more than in the previous year. Profits in this sector have shown steady improvement since 2002, the last year reporting an operating loss.

Operating profits slid 5.5% among the remaining manufacturing industries last year.

Wood and paper manufacturers continued to struggle with weak demand and soft prices in 2007. Operating profits tumbled 75.9% to $0.4 billion, their third straight annual decline.

Profits among primary metal producers fell 21.5% to $3.8 billion in 2007. Prices peaked early in 2007 but fell back significantly in the latter months.

Chartered banks spearheaded an 18.7% upswing in the profits of depository credit intermediaries, which reached a record $32.5 billion in 2007. Higher net interest revenues accounted for a sizeable portion of the gain.

Securities, commodity contracts and other financial investment companies also reported stronger results in 2007. Profits for the year advanced 12.9% to $19.1 billion.

Life insurance companies earned $8.3 billion in profits, up from $5.2 billion in 2006. However, property and casualty insurers saw their profits slide 19.5% to $6.3 billion.