Canadian corporate profits decreased in the first quarter of 2008 as 12 of 22 industry groups reported lower gains.

Corporate profits totalled $67.8 billion, down 1.1% from the fourth quarter of 2007, Statistics Canada reported today.

Financial, transportation and warehousing and manufacturing recorded the biggest declines, while information and culture, retail trade and oil-and-gas posted the biggest gains.

Profits in the non-financial sector edged up 0.5% to $48.7 billion, while those in the financial sector fell 5% to $19.1 billion.

Overall operating profits in the manufacturing sector contracted 2.3% to $11.2 billion in the quarter, its third drop in four quarters.

Leading the decline in the sector were wood and paper manufacturers, whose profits fell $240 million in the face of slumping demand from the U.S. housing market and a strong Canadian dollar.

Rising worldwide grain prices, coupled with higher fuel costs, boosted operating expenses and cut into profits for food and soft-drink manufacturers.

Profits weakened among chemical, plastics, and rubber product producers.

First-quarter profits for petroleum and coal products manufacturers improved slightly. However, maintenance on machinery and equipment, coupled with temporary production issues at refineries, acted as a drag on results.

Also, soaring costs in crude oil, the main production input for refiners, along with evidence of weakening demand for petroleum products other than gasoline, have pinched profit margins.

Corporate profits in oil-and-gas extraction rose 3.7% to $7.1 billion, their highest level in six quarters as crude-oil prices soared and natural-as prices rebounded

First-quarter profits for the transportation and warehousing industry declined a substantial 8.5% to $2.9 billion.

Retailers registered an impressive 6.5% gain in profits, which hit $4.7 billion in the first quarter. That’s the seventh gain in nine quarters.

Profits in the information and cultural industry rebounded to $3.8 billion, up 14.4% from the previous quarter.

Slower mutual fund sales, partly a result of weakness in equity markets, dragged down profits for securities, commodity contracts and other financial companies. In addition, bank profits showed a modest decline, primarily due to lower fee revenue.