Canadian corporations earned $50.2 billion in operating profits in the second quarter of 2009, down 6.4% from the previous quarter, Statistics Canada said Wednesday.

This compares with declines of 14.1% in the first quarter of 2009 and 19.2% in the fourth quarter of 2008.

“As of the second quarter of 2009, operating profits have declined 35.1% since their peak in the third quarter of 2008,” the government agency said.

Profits in the non-financial industries fell 4.0% to $37.6 billion in the second quarter, while profits in the financial industries shrank by 13.1% to $12.5 billion.

StatsCan said the lower profits in the quarter were mainly attributable to manufacturing, banks and credit unions, and insurance carriers.

Twelve of 22 industries reported lower profits during the quarter, compared with 16 of 22 industries that reported decreases in profits in the first quarter.

Manufacturers earned $6.8 billion in operating profits in the second quarter, down 7.1% from the first quarter. Petroleum and coal manufacturers accounted for the bulk of the decline.



Life, health and medical insurance carriers and depository credit intermediaries accounted for the bulk of the 13.1% decline in financial industries’ profits in the second quarter. Higher claims expenses pushed total expenses higher for life, health and medical carriers. For banking and other depository credit intermediaries, lower interest revenue accounted for declines in profits.

IE

http://www.statcan.gc.ca/daily-quotidien/090826/dq090826a-eng.htm

Operating profits slide 12% in first quarter: StatsCan
Wednesday, May 27, 2009

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