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April 1997-------------------Released 10 a.m. (EDT), Monday, April 7, 1997
(CB97-56)
Contact: Ronald H. Lee (301) 763-5435 or Frank Hartman (301) 763-7182.
Except where noted, all figures in text and tables are not seasonally adjusted.
Sales and after-tax profits for all manufacturing are presented in Table 1 on both a seasonally
adjusted and an unadjusted basis. Seasonally adjusted historical data for this series, as well as for
total durable and nondurable manufacturing, are presented in Table 3. Data for individual
manufactring industries are not seasonally adjusted.
Manufacturing corporations' seasonally adjusted after-tax profits averaged 6.1 cents per dollar of sales for the fourth quarter of 1996, down 0.4 (+/-0.21) cents from the third quarter of 1996. The Commerce Department's Bureau of the Census also reported that on an unadjusted basis, after-tax profits for the fourth quarter averaged 5.5 cents per dollar of sales, down 1.1 (+/-0.21) from the preceding quarter, but up 1.2 (+/-0.22) cents from the same quarter in 1995.
For the fourth quarter of 1996, manufacturers' seasonally adjusted after-tax profits were $58.5 billion, down $3.3 (+/-1.1) billion from last quarter. On an unadjusted basis, fourth quarter after-tax profits were $53.8 billion, down $8.8 (+/-1.1) billion from last quarter, but up $14.4 (+/-1.2) billion from the same quarter a year ago.
Unadjusted durable manufacturers' after-tax profits for the fourth quarter of 1996 were $25.0 billion, down $2.6 billion or 9.5 percent (+/-3.2%) when compared to the third quarter of 1996. Most underlying industry categories were down. Fabricated metals' decline of $1.6 (+/-0.4) billion, the largest of the group, was due primarily to lower operating profits. Also down were stone, clay, and, glass, instruments, lumber and wood, iron and steel, motor vehicles, and nonferrous metals. Machinery and electrical machinery reported increases.
When compared to the fourth quarter of 1995, unadjusted durables manufacturers' profits were up $6.3 billion or 33.9 percent (+/-5.1%), with the underlying industries showing mixed results. Machinery, fabricated metals, aircraft, furniture, and instruments reported increases. Machinery's $3.4 (+/-0.5) billion increase was due chiefly to higher operating profits and the absence of significant nonrecurring charges reported last year. Motor vehicles, nonferrous metals, and iron and steel reported decreases in earnings.
Unadjusted nondurable manufacturers' after-tax profits for the fourth quarter of 1996 were $28.8 billion, down $6.2 billion or 17.6 percent (+/-1.7%) when compared to the third quarter of 1996. Most underlying industry categories were down. Residual of chemicals' $3.1 (+/-0.1) billion decrease was a result of a decline in operating profits and the inclusion this quarter of significant nonrecurring charges against income. The $1.7 (+/-0.2) billion drop in industrial chemicals was due chiefly to lower operating profits. Rubber's $1.1 (+/-0.2) billion decline was primarily due to the inclusion this quarter of significant asset writedowns and restructuring charges against income. Paper and textiles also reported declines. Petroleum and printing reported increases in earnings.
When compared to the same quarter in 1995, unadjusted nondurable manufacturers' profits were up $8.1 billion or 39.2 percent (+/-5.3%). All of the underlying industry categories except paper and rubber reported upturns in after-tax profits. Improved operating margins were responsible for the increases reported in food, printing, textiles, and apparel categories. The $5.1 (+/-0.1) billion increase in petroleum was due primarily to improved operating profits and the absence of significant nonrecurring charges reported last year. The increases reported in drugs and industrial chemicals were due primarily to the absence of significant nonrecurring charges reported in the fourth quarter of 1995. Paper's decrease of $1.8 (+/-0.2) billion was due chiefly to lower operating profits. The downturn in rubber resulted from substantial nonrecurring charges this quarter more than offsetting improvements in operating profits.
Manufacturers' seasonally adjusted sales for the fourth quarter of 1996 were $961.3 billion, up $12.4 billion or 1.3 percent (+/-1.0%) from last quarter. On an unadjusted basis, sales were $976.2 billion, up $31.2 billion or 3.3 percent (+/-1.0%) from last quarter and up $61.1 billion or 6.7 percent (+/-0.9%) from the fourth quarter of 1995.
Seasonally adjusted sales at the nondurable level were $465.3 billion, up $6.3 billion or 1.4 percent (+/-1.3%) from last quarter. Seasonally adjusted durable manufacturers' sales showed no statistically significant change from last quarter. Unadjusted sales at the nondurable manufacturing level were $470.1 billion, up $6.6 billion or 1.4 percent (+/-1.3%) from last quarter and up $27.7 billion or 6.3 percent (+/-1.2%) from the fourth quarter of 1995. Unadjusted durable manufacturers' sales were $506.0 billion, up $24.5 billion or 5.1 percent (+/-1.7%) when compared to the third quarter of 1996. On a same quarter a year ago basis, durable manufacturers' sales were up $33.3 billion or 7.1 percent (+/-1.6%).
Also included in this release are fourth quarter 1996 data for large mining and wholesale and retail trade corporations.
These advance data, based on quarterly financial reports from about 8,300 corporations, were released today from the Quarterly Financial Report for Manufacturing, Mining, and Trade Corporations--Fourth Quarter 1996 (QFR-96-4). The publication includes statements of income and retained earnings, balance sheets, and related financial and operating ratios. The aggregated data are classified by industry and asset size.
For information on publications and electronic files, see the end of this release.
EXPLANATORY NOTES:
This quarter's publication contains data revised due to the reclassification of corporations by industry, and revisions that reflect respondents' corrections of submitted data subsequent to original publication.
The data presented in this report are estimated from a sample survey and therefore are subject to sampling variability as well as nonsampling variability such as response error, nonreporting, and coverage errors. Estimates of sampling variability are presented in the publication. A statement such as "up 2.5 (+/-0.15) cents," appearing in the text, indicates the range (+2.35 to +2.65 cents) in which the actual change is likely to have occurred. The range given for the change is a 90 percent confidence interval that accounts only for sampling variability. If the range had contained zero (0), it would have been uncertain whether there was an increase or decrease; that is, the change would not have been statistically significant. For any comparison cited without a confidence interval, the change is statistically significant. The quarterly publication includes more detailed explanations of confidence intervals and sampling variability, along with additional measures of sampling variability.
This report is available on the day of issue through the Department of Commerce's on-line Economic Bulletin Board (N-8-1) (202-377-3870) and on the Internet at (http://www.census.gov/agfs/www/qfr.html).
TABLE 1. PART A--QUARTERLY FINANCIAL REPORT FOR MANUFACTURING CORPORATIONS
Seasonally Adjusted
4Q 3Q 4Q
1996 1996(1) 1995(1)
Rate of return (after taxes):
Cents per dollar of sales ................ 6.1 6.5 4.9
Percent on equity (annual rate) .......... NA NA NA
(million dollars)
Net Sales.................................. 961,338 948,905 901,250
Income after income taxes ................ 58,487 61,738 44,127
Dividends paid (cash) .................... NA NA NA
(1) Revised.
SOURCE: Quarterly Financial Report for Manufacturing, Mining, and Trade Corporations--QFR-96-4, April 1997.
TABLE 1. PART B--QUARTERLY FINANCIAL REPORT FOR MANUFACTURING CORPORATIONS
Unadjusted
4Q 3Q 4Q
1996 1996(1) 1995(1)
Rate of return (after taxes):
Cents per dollar of sales ................ 5.5 6.6 4.3
Percent on equity (annual rate) .......... 15.4 18.4 12.3
(million dollars)
Net Sales.................................. 976,171 945,017 915,111
Income after income taxes ................ 53,797 62,598 39,361
Dividends paid (cash) .................... 24,407 23,243 20,948
(1) Revised.
SOURCE: Quarterly Financial Report for Manufacturing, Mining, and Trade Corporations--QFR-96-4, April 1997.
TABLE 2. PART A--SALES AND PROFITS OF CORPORATIONS ENGAGED IN MANUFACTURING, MINING, AND TRADE--NOT SEASONALLY ADJUSTED
Sales
4Q 3Q 4Q
Industry Group 1996 1996(1) 1995(1)
(million dollars)
All manufacturing corporations ............ 976,171 945,017 915,111
Nondurable goods .......................... 470,143 463,531 442,427
Food and tobacco......................... 124,609 124,003 120,076
Textiles ................................ 17,459 17,852 16,695
Apparel(2) .............................. 19,075 18,458 17,446
Paper ................................... 39,154 40,919 42,305
Printing ................................ 46,570 45,164 45,269
Chemicals ............................... 103,157 104,464 101,046
Industrial chemicals and synthetics(3).. 39,552 40,619 38,612
Drugs(3) ............................... 29,310 28,129 28,381
Residual of chemicals(3)................ 34,295 35,715 34,052
Petroleum ............................... 90,338 82,869 70,530
Rubber .................................. 29,780 29,803 29,060
Durable goods ............................. 506,029 481,486 472,684
Stone, clay, and glass .................. 18,207 19,419 15,604
Primary metals .......................... 36,432 36,251 36,439
Iron and steel(3) ...................... 17,510 17,642 16,279
Nonferrous metals(3).................... 18,922 18,609 20,160
Fabricated metals ....................... 42,168 43,628 39,507
Machinery ............................... 107,304 99,936 100,931
Electrical machinery .................... 101,696 92,099 91,952
Transportation Equipment ................ 127,721 119,437 120,967
Motor vehicles and equipment(3) ........ 83,942 78,210 82,971
Aircraft, guided missiles, and parts(3). 34,977 32,410 30,156
Instruments ............................. 29,973 29,428 30,511
Other durable goods ..................... 42,529 41,289 36,774
Lumber and wood products(3) ............ 18,451 19,515 15,108
Furniture and fixtures(3) .............. 14,541 13,612 12,778
Miscellaneous manufacturing(3) ......... 9,536 8,162 8,888
Mining(4) ................................. 15,197 13,729 12,276
Wholesale trade(4) ........................ 270,040 256,634 253,421
Retail trade(4) ........................... 270,935 237,019 263,258
* Operating profits are profits before nonoperating income and expense items and income taxes.
(1) Revised.
(2)Includes leather industry (previously titled "Other Nondurables").
(3)Included in major industry above.
(4)Mining and trade data are of the quarterly results of companies
in those divisions with assets over $50 million; whereas, data for manufacturing corporations represent
the quarterly results of companies with assets over $250,000.
SOURCE: Quarterly Financial Report for Manufacturing, Mining, and Trade Corporations--QFR-96-4, April 1997.
TABLE 2. PART B--SALES AND PROFITS OF CORPORATIONS ENGAGED IN MANUFACTURING, MINING, AND TRADE--NOT SEASONALLY ADJUSTED
Operating Profits*
4Q 3Q* 4Q*
Industry Group 1996 1996(1) 1995(1)
(million dollars)
All manufacturing corporations ............ 66,693 72,760 58,109
Nondurable goods .......................... 37,643 41,608 33,919
Food and tobacco......................... 11,335 10,833 9,247
Textiles ................................ 1,112 1,236 592
Apparel(2) .............................. 988 1,304 658
Paper ................................... 2,666 3,651 4,905
Printing ................................ 4,730 4,592 3,698
Chemicals ............................... 8,991 11,740 9,687
Industrial chemicals and synthetics(3).. 2,799 4,387 2,929
Drugs(3) ............................... 3,037 3,349 3,224
Residual of chemicals(3)................ 3,155 4,004 3,535
Petroleum ............................... 5,877 6,017 3,635
Rubber .................................. 1,945 2,236 1,497
Durable goods ............................. 29,050 31,153 24,191
Stone, clay, and glass .................. 1,758 2,443 1,275
Primary metals .......................... 1,874 2,065 2,267
Iron and steel(3) ...................... 795 918 814
Nonferrous metals(3).................... 1,079 1,147 1,452
Fabricated metals ....................... 2,867 3,952 2,453
Machinery ............................... 4,618 4,545 2,572
Electrical machinery .................... 9,997 7,576 8,120
Transportation Equipment ................ 3,952 5,216 3,369
Motor vehicles and equipment(3) ........ 1,075 1,794 2,606
Aircraft, guided missiles, and parts(3). 2,495 2,751 261
Instruments ............................. 1,708 2,147 2,232
Other durable goods ..................... 2,274 3,209 1,902
Lumber and wood products(3) ............ 752 1,603 607
Furniture and fixtures(3) .............. 1,069 1,061 678
Miscellaneous manufacturing(3) ......... 453 544 616
Mining(4) ................................. 2,282 1,866 1,148
Wholesale trade(4) ........................ 5,643 6,028 5,490
Retail trade(4) ........................... 13,321 9,386 13,300
* Operating profits are profits before nonoperating income and expense items and income taxes.
(1) Revised.
(2)Includes leather industry (previously titled "Other Nondurables").
(3)Included in major industry above.
(4)Mining and trade data are of the quarterly results of companies
in those divisions with assets over $50 million; whereas, data for manufacturing corporations represent
the quarterly results of companies with assets over $250,000.
SOURCE: Quarterly Financial Report for Manufacturing, Mining, and Trade Corporations--QFR-96-4, April 1997.
TABLE 2. PART C--SALES AND PROFITS OF CORPORATIONS ENGAGED IN MANUFACTURING, MINING, AND TRADE--NOT SEASONALLY ADJUSTED
After-Tax Profits
4Q 3Q 4Q
Industry Group 1996 1996(1) 1995(1)
(million dollars)
All manufacturing corporations ............ 53,797 62,598 39,361
Nondurable goods .......................... 28,803 34,976 20,696
Food and tobacco ........................ 7,316 7,143 5,675
Textiles ................................ 376 657 (32)
Apparel(2) .............................. 705 817 466
Paper ................................... 917 1,752 2,711
Printing ................................ 3,188 2,934 2,524
Chemicals ............................... 8,965 13,650 6,631
Industrial chemicals and synthetics(3).. 1,747 3,469 833
Drugs(3) ............................... 4,563 4,466 3,313
Residual of chemicals(3)................ 2,655 5,715 2,484
Petroleum ............................... 6,976 6,611 1,872
Rubber .................................. 361 1,411 850
Durable goods ............................. 24,994 27,622 18,665
Stone, clay, and glass .................. 688 1,513 641
Primary metals .......................... 808 1,402 1,615
Iron and steel(3) ...................... 120 584 506
Nonferrous metals(3) ................... 688 818 1,109
Fabricated metals ....................... 1,572 3,147 236
Machinery ............................... 6,586 5,809 3,188
Electrical machinery .................... 7,622 6,375 7,350
Transportation equipment ................ 5,010 5,519 4,515
Motor vehicles and equipment(3) ........ 3,011 3,322 3,542
Aircraft, guided missiles, and parts(3). 1,891 1,806 574
Instruments ............................. 1,192 1,865 524
Other durable goods ..................... 1,516 1,992 598
Lumber and wood products(3) ............ 404 994 386
Furniture and fixtures(3) .............. 710 619 (321)
Miscellaneous manufacturing(3) ......... 402 379 533
Mining(4) ................................. 1,480 1,905 411
Wholesale trade(4) ........................ 3,939 3,475 3,115
Retail trade(4) ........................... 6,460 4,832 4,440
* Operating profits are profits before nonoperating income and expense items and income taxes.
(1) Revised.
(2)Includes leather industry (previously titled "Other Nondurables").
(3)Included in major industry above.
(4)Mining and trade data are of the quarterly results of companies
in those divisions with assets over $50 million; whereas, data for manufacturing corporations represent
the quarterly results of companies with assets over $250,000.
SOURCE: Quarterly Financial Report for Manufacturing, Mining, and Trade Corporations--QFR-96-4, April 1997.
TABLE 3. PART A--QUARTERLY FINANCIAL REPORT FOR MANUFACTURING CORPORATIONS--SEASONALLY ADJUSTED
Net Sales (1)
Industry Group and Year Q1 Q2 Q3 Q4
(million dollars)
All manufacturing:
1991 ............................ 678,318 684,251 698,419 699,220
1992 ............................ 704,485 718,121 729,611 737,280
1993 ............................ 743,816 750,910 753,376 766,771
1994 ............................ 784,807 802,139 825,511 842,440
1995 ............................ 871,743 870,628 884,492 901,250
1996 ............................ 913,949 928,584 948,905 961,338
All nondurable manufacturing:
1991 ............................ 363,418 360,504 365,804 366,858
1992 ............................ 367,327 374,318 378,380 380,131
1993 ............................ 381,930 382,434 379,331 381,566
1994 ............................ 387,342 394,304 405,590 410,795
1995 ............................ 425,512 426,675 430,865 437,648
1996 ............................ 443,008 452,101 459,008 465,318
All durable manufacturing:
1991 ............................ 314,900 323,747 332,615 332,362
1992 ............................ 337,158 343,803 351,231 357,149
1993 ............................ 361,886 368,476 374,045 385,205
1994............................. 397,465 407,835 419,921 431,645
1995 ............................ 446,231 443,953 453,627 463,602
1996 ............................ 470,941 476,483 489,897 496,020
(1) Revised.
SOURCE: Quarterly Financial Report for Manufacturing, Mining, and Trade Corporations--QFR-96-4, April 1997.
TABLE 3. PART B--QUARTERLY FINANCIAL REPORT FOR MANUFACTURING CORPORATIONS--SEASONALLY ADJUSTED
After-Tax Profits (1)
Industry Group and Year Q1 Q2 Q3 Q4
(million dollars)
All manufacturing:
1991 ............................ 19,888 17,927 15,991 13,773
1992 ............................ (42,339) 24,368 26,272 14,958
1993 ............................ 13,032 19,305 23,835 27,714
1994 ............................ 37,333 41,016 46,046 52,228
1995 ............................ 54,322 51,677 50,014 44,127
1996 ............................ 53,146 57,902 61,738 58,487
All nondurable manufacturing:
1991 ............................ 16,886 14,771 15,026 13,410
1992 ............................ (3,858) 18,146 17,356 15,196
1993 ............................ 13,101 15,148 12,096 15,841
1994 ............................ 19,651 19,546 23,214 26,486
1995 ............................ 27,011 27,702 28,650 21,885
1996 ............................ 29,572 32,111 33,580 29,885
All durable manufacturing:
1991 ............................ 3,002 3,156 965 363
1992 ............................ (38,481) 6,222 8,916 (238)
1993 ............................ (69) 4,157 11,739 11,873
1994 ............................ 17,682 21,470 22,832 25,742
1995 ............................ 27,311 23,975 21,364 22,242
1996 ............................ 23,574 25,791 28,158 28,602
(1) Revised.
SOURCE: Quarterly Financial Report for Manufacturing, Mining, and Trade Corporations--QFR-96-4, April 1997.
TABLE 4. INCOME STATEMENT FOR RETAIL TRADE CORPORATIONS WITH ASSETS OF $50 MILLION AND OVER
4Q 3Q 4Q
Item 1996 1996(1) 1995(1)
(million dollars)
Net sales, receipts, and operating revenues .. 270,935 237,019 263,258
Less: Depreciation, depletion and
amortization ......................... 5,044 5,015 4,879
Less: All other operating costs and expenses . 252,571 222,618 245,079
Income (or loss) from operations ........... 13,321 9,386 13,300
Net nonoperating income (expense) ............ (2,895) (1,830) (5,241)
Income (or loss) before income taxes ....... 10,425 7,556 8,059
Less: Provision for current and deferred
domestic income taxes ................ 3,965 2,724 3,619
Income (or loss) after income taxes ........ 6,460 4,832 4,440
Cash dividends charged to retained earnings
in current quarter ......................... 1,320 1,161 1,078
Net income retained in business ............ 5,140 3,672 3,362
Retained earnings at beginning of quarter .... 103,679 101,060 97,036
Other direct credits (or charges) to retained
earnings (net) ............................. (1,543) (645) (1,536)
Retained earnings at end of quarter ........ 107,276 104,087 98,863
(1) Revised.
SOURCE: Quarterly Financial Report for Manufacturing, Mining, and Trade Corporations--QFR-96-4, April 1997.
TABLE 5. INCOME STATEMENT IN RATIO FORMAT FOR RETAIL TRADE CORPORATIONS WITH ASSETS OF $50 MILLION AND OVER
4Q 3Q 4Q
Item 1996 1996(1) 1995(1)
(cents)
Net sales, receipts, and operating revenues .. 100.0 100.0 100.0
Less: Depreciation, depletion, and
amortization ............................... 1.9 2.1 1.9
Less: All other operating costs and expenses . 93.2 93.9 93.1
Income (or loss) from operations ........... 4.9 4.0 5.1
Net nonoperating income (expense) ............ (1.1) (0.8) (2.0)
Income (or loss) before income taxes ....... 3.8 3.2 3.1
Less: Provision for current and deferred
domestic income taxes ...................... 1.5 1.1 1.4
Income (or loss) after income taxes ........ 2.4 2.0 1.7
(1) Revised.
SOURCE: Quarterly Financial Report for Manufacturing, Mining, and Trade Corporations--QFR-96-4, April 1997.
TABLE 6. OPERATING RATIOS FOR RETAIL TRADE CORPORATIONS WITH ASSETS OF $50 MILLION AND OVER
4Q 3Q 4Q
Item 1996 1996(1) 1995(1)
(percent)
Annual rate of profit on stockholders' equity
at end of period:
Before income taxes ...................... 25.38 18.74 20.95
After income taxes ....................... 15.73 11.98 11.54
Annual rate of profit on total assets:
Before income taxes ...................... 8.54 6.16 7.02
After income taxes ....................... 5.29 3.94 3.87
(1) Revised.
SOURCE: Quarterly Financial Report for Manufacturing, Mining, and Trade Corporations--QFR-96-4, April 1997.
Schedule of Advance Data Release Dates--1997
Quarter Manufacturing, Mining, and Wholesale Trade Retail Trade First 1997 June 16, 1997 July 16, 1997 Second 1997 September 15, 1997 October 15, 1997 Third 1997 December 15, 1997
The Quarterly Financial Report for Manufacturing, Mining and Trade Corporations publication series is offered for sale by the Superintendent of Documents, U.S. Government Printing Office, Washington, D.C. 20402. Publications are available from GPO two weeks from the date of this release and phone orders are taken at (202) 512-1800 (see "Subscription order form"). The annual subscription rate is $33; single copy $10. [Remittances from foreign countries must be by international money order or by draft on a U.S. bank, $41.25 a year; single copy $12.50.]
Files are also available on 3.5 inch flexible diskettes from Customer Services (diskettes), Administrative and Customer Services Division, Bureau of the Census, Washington, D.C. 20233 (301)457-4100. The annual subscription cost is $84; $66 for the first diskette and $6 for each additional diskette.
Additional details regarding this program may be directed to Ronald Lee on (301) 763-5435 or Frank Hartman on (301) 763-7182.
