Canadian corporations see profitable third quarter

Petroleum and coal manufacturing operating profits were up by $629 million compared with the second quarter: StatsCan

Mario ToneguzziThe third quarter of this year was a profitable one for Canadian corporations.

Statistics Canada reported on Thursday that Canadian corporations earned $107.5 billion in operating profit in the third quarter, up $4.0 billion or 3.9 per cent from the second quarter and 5.6 per cent higher than the third quarter of 2017.

“In the non-financial industries, operating profit rose $0.7 billion (+1.0 per cent) from the second quarter to $69.9 billion in the third quarter, as operating revenue increased by $7.0 billion (+0.7 per cent). Overall, operating profit was up in 11 of 17 non-financial industries. Compared with the third quarter of 2017, operating profit for Canadian non-financial corporations increased 7.5 per cent,” said the federal agency.

“In wholesale trade, operating profit increased by $230 million (+2.7 per cent) from the second quarter to $8.6 billion in the third quarter. Overall, operating profit was up in all wholesale trade industries, led by machinery, equipment and supplies merchant wholesalers (up $99 million or +4.3 per cent).”

StatsCan said operating profit for manufacturing industries edged down $68 million (-0.4 per cent) from the second quarter to $15.3 billion in the third quarter, as seven of 13 manufacturing industries reported declines.

“Operating profit for primary metal manufacturing led the decrease in the third quarter, down $660 million (-44.6 per cent) from the second quarter due to lower commodity prices. Wood and paper manufacturing operating profit decreased $159 million (-6.5 per cent) in the third quarter, mainly due to lower lumber prices and, to a lesser extent, the wildfires in Western Canada,” it said.

“Partially offsetting these decreases was petroleum and coal manufacturing, where operating profits were up by $629 million (+28.2 per cent) compared with the second quarter. The increase was mainly attributable to a rise in production following extended shutdowns in the second quarter.”

StatsCan said operating profit in the financial industries rose by $3.3 billion (+9.6 per cent) in the third quarter, growing from $34.3 billion to $37.6 billion. Compared with the same quarter in 2017, operating profit rose 2.3 per cent.


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