Canadian corporate profits eased back in the second quarter following four quarters of modest growth, Statistics Canada reported today.

Profits of $62.1 billion remained near their record high, 0.7% below first-quarter levels.

StatsCan said declines in the manufacturing and insurance sectors were partially offset by gains from wholesalers, retailers and real estate companies.

Non-financial industries’ operating profits edged down 0.4% from the first quarter to $44.9 billion.

Of the 17 non-financial industries, eight showed profit growth, six posted declines, while three remained essentially unchanged.

Financial industries also lost ground as profits slipped 1.4% to $17.3 billion; insurance carriers and depository credit intermediaries – mainly chartered banks – were responsible for the decline.

Profits in the manufacturing sector were affected by the Canadian dollar’s continued appreciation against the U.S. dollar and by soft U.S. demand for Canadian automotive and lumber products.

Manufacturers’ operating profits shrank 6.3% to $10.1 billion, following retractions of 1.7% and 0.3% in the previous two quarters.

Overall, losses in motor vehicles and wood and paper industries overshadowed gains in the petroleum and coal, and chemical, plastic and rubber products industries.

Profits among motor vehicles and parts manufacturers tumbled $770 million to a loss of $50 million for the quarter, despite a 4.4% growth in domestic new motor vehicle sales.

Wood and paper producers also fared poorly, reporting a loss of $130 million, partially due to declining lumber prices on the world market.

Petroleum and coal producers benefited from swelling exports, propelled by strong global demand and rising oil prices, as operating profits jumped 14.2% to $3.2 billion.

High prices for inorganic industrial chemical products and fertilizers helped profits for chemical, plastic and rubber products manufacturers rebound 16.5% to $1.6 billion, following a decline of 13.6% in the first quarter.

Wholesalers moved ahead in the second quarter, as profits rose 6.1% to a record high of $4.7 billion.

Continued strong consumer spending boosted retail profits 4.1% to a record high of $4 billion.