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Financial and Taxation Statistics for Enterprises
2006
Archived Content
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Highlights
- Corporate operating profits, bolstered by soaring commodity prices, high employment levels and low interest rates, hit another all-time high in 2006. Operating profits reached $285.6 billion, surpassing the previous record of $256.0 billion set in 2005.
- The improvement was broadly based: profits in the non-financial industries advanced 9.9% to $204.3 billion and those in the financial industries gained a solid 15.8% to $81.3 billion.
- The top contributors to non-financial operating profits were energy-based industries, construction and real estate. Companies engaged in oil and gas extraction and support activities, utilities operators, construction, petroleum and coal product manufacturers and real estate earned combined profits of $75.3 billion and accounted for more than one-third of the non-financial operating profits.
- Thriving demand for residential and non-residential space, especially in Western Canada, lifted the value of building permits to new highs. The construction industry recorded robust gains with operating profits increasing 36.1% to $11.5 billion. Profits in the real estate industry grew at a more modest rate of 8.6%, reaching $9.1 billion.
- Some manufacturing industries, faced with fierce global competition, an appreciating Canadian dollar relative to the US dollar and higher energy costs, had another difficult year. Despite primary metal manufacturers posting record profits of $6.2 billion, up $2.3 billion from 2005, overall manufacturing profits increased by only $1.6 billion to $45.4 billion.
- Low interest rates and high employment levels translated into solid consumer and business spending and profitability for banking, financial services and wealth management enterprises.
- Corporations involved in securities and commodity exchanges and other financial investment activities had an outstanding year. Operating profits increased for the fourth consecutive year, hitting $20.2 billion in 2006, up 21.6% from 2005.
- Taxable income rose 18.4% to $170.8 billion, generating $55.0 billion in corporate taxes payable to government treasuries. The federal portion amounted to $37.3 billion, while the provinces claimed $17.7 billion.
