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Quarterly financial statistics for enterprises
First quarter 2010 (preliminary)
Canadian corporations earned $62.9 billion in operating profits in the first quarter, up 4.8% or $2.9 billion from the previous quarter. This was still below the $78.9 billion high reached in the third quarter of 2008 before the economy headed into the recent downturn. This marks the third consecutive quarter of growth since the low of $48.0 billion reported in the second quarter of 2009.
Profits in the non-financial industries increased 8.3% from the fourth quarter to $46.6 billion in the first quarter, while profits in the financial industries decreased 4.1% to $16.4 billion. Overall, gains were mixed as 10 of 22 industries reported higher profits in the first quarter.
Note to readers
Quarterly profit numbers referred to in the text are seasonally adjusted and are in current dollars. The quarterly financial data for the period covering 2007 to date have been revised following reconciliation to the 2007 and 2008 annual series.
Quarterly financial statistics for enterprises are based upon a sample survey and represent the activities of all corporations in Canada, except those that are government controlled or not-for-profit. An enterprise can be a single corporation or a family of corporations under common ownership and control, for which consolidated financial statements are produced.
Profits referred to in this analysis are operating profits earned from normal business activities. For non-financial industries, operating profits exclude interest and dividend revenue and capital gains/losses whereas for financial industries, these are included along with interest paid on deposits.
Operating profits differ from net profits, which represent the after tax profits earned by corporations.
Oil and gas profits up in the first quarter
Profits for oil and gas extraction and support activities were up 40.4% to $4.1 billion in the first quarter. Part of this gain came from rising oil prices. This marks the third straight quarter of growth for the sector, although profits remained below their peak of $13.1 billion reported in the third quarter of 2008.
Mining profits increase
The profits for the mining and quarrying industry grew by 14.8% to $1.3 billion. This gain was partly attributed to increases in commodity prices.
Manufacturing profits continue to rise
Manufacturers reported a fourth consecutive quarter of increased profits. At $10.4 billion, first quarter profits grew 12.6% over the previous quarter. Leading the growth were motor vehicle and parts manufacturers, and primary metal manufacturers.
Wholesale and retail profits up
Profits in the wholesale industry grew by 8.1% to $5.4 billion in the first quarter. Building materials and supplies wholesalers, and motor vehicle and parts wholesalers contributed almost half of this growth.
Profits for retailers also grew by 11.5% to $4.1 billion. Clothing, department and other general merchandise stores, motor vehicles and parts dealers, and food and beverage stores were the top contributors to this growth.
Operating profits for financial industries decrease
Profits for the financial industries fell 4.1% to $16.4 billion in the first quarter. Profits of insurance carriers and related activities declined 26.0% to $3.1 billion. This decrease was attributed to increased expenses as a result of actuarial adjustments and higher claims. Depository credit intermediation, mainly chartered banks, tempered the decline with a 7.8% increase in profits compared with the fourth quarter of 2009 to $6.6 billion.
