Operating profits at Canadian corporations fell 11.8% to $55.1 billion in the first quarter, Statistics Canada said Wednesday.

StatsCan said 18 of 22 industries reported lower profits, with lower revenues contributing to the declines.

Profits in the non-financial industries fell 12.6% to $41 billion, while profits in the financial industries contracted 9.3% to $14.1 billion.

Similar to the fourth quarter of 2008, lower profits were mainly attributable to oil and gas extractors and manufacturers.

Oil and gas extractors and refiners earned lower profits for the second consecutive quarter, as both industries posted declines. Oil and gas extractors earned $4.3 billion in operating profits, down 33.5% from the fourth quarter of 2008. Petroleum and coal products manufacturers’ profits also decreased, down 24.4% to $1.8 billion.

Manufacturers earned $8 billion in operating profits in the first quarter, down 15.1% from the previous quarter, with the bulk of the decrease coming from the petroleum and coal industry.

Lower prices and reduced demand for potash and base metals prompted layoffs in the mining sector, as profits in the industry fell 25.8% to $1.9 billion.

Transportation and warehousing profits decreased 16.1% to $2.7 billion.

Insurance carriers led the financial industries to a 9.3% decline in operating profits. Specifically, life, health and medical insurance carriers reported higher claims as well as losses on the sale of securities and other assets, as profits in the quarter fell 56.5% to $618 million.

IE