QUARTERLY FINANCIAL REPORT FOR MANUFACTURING, MINING, AND TRADE CORPORATIONS

UNITED STATES BUREAU OF THE CENSUS

Economic and Statistics Administration, U.S. Department of Commerce

SECOND QUARTER 2006 ADVANCE DATA FROM THE QUARTERLY FINANCIAL REPORT LARGE U.S. RETAIL TRADE CORPORATIONS

Released 10 a.m. (EDT), Wednesday, October 11, 2006 CB06-154

Contact: Yolando St.George (301) 763-6600 or John Seabold (301) 763-3386.

Press Release (pdf)| Data Availability | Order & Release | QFR Program |

CHART 1:

CHART 2:
Retail Profits Per Dollar of Sales
After-Tax Profits and Sales - Not Seasonally Adjusted After-tax profits of U.S. retail corporations with assets of $50 million and over totaled $13.6 billion in the second quarter 2006, down $2.4 (ą0.2) billion from the $16.0 billion of the preceding quarter, and down $0.3 (ą0.2) billion from $13.9 billion of the same quarter a year ago, the U.S. Census Bureau reported. Sales in the second quarter 2006, at $484.2 billion, were up $20.1 (ą3.1) billion or 4.3 percent (ą0.7%) from the $464.1 billion of last quarter, and up $41.6 (ą3.0) billion or 9.4 percent (ą0.7%) from the $442.6 billion of the second quarter of 2005. These data are not adjusted for seasonality.

After-tax profits for these corporations averaged 2.8 cents per dollar of sales for the second quarter of 2006, down 0.6 (ą0.1) cent from the 3.4 cents of the preceding quarter, and down 0.3 (ą0.1) cent from the 3.1 cents recorded in the second quarter of 2005.

The annual rate of after-tax profits on stockholders' equity in the second quarter of 2006 was 14.5 percent, down 2.6 percent (ą0.2%) from the 17.1 percent of the first quarter of 2006, and down 1.9 percent (ą0.2%) from the 16.4 percent of the second quarter of 2005.

NOTE These data are based on quarterly financial reports obtained from approximately 500 corporations. More detailed information on the retail trade sector for the second quarter 2006 will be published in the Quarterly Financial Report for Manufacturing, Mining, and Trade Corporations - Third Quarter 2006 (QFR-06-3), scheduled for release on December 12, 2006.

SAMPLING 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 (+/-0.2) cents", appearing in the text, indicates the range (+2.3 to +2.7 cents) in which the actual change is likely to have occurred. The range given for the change is a 90% 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 at the 90% confidence level. The quarterly publication includes more detailed explanations of confidence intervals and sampling variability, along with additional measures of sampling variability.

DATA AVAILABILITY This press release can be viewed today in page image format (.pdf) at the internet website http://www.census.gov/csd/qfr. More detailed information on U.S. Manufacturing, Mining, and Wholesale and Retail Trade Corporations is available for downloading at our website under "QFR Products: Publication". The publication includes statements of income and retained earnings, balance sheets, and related financial and operating ratios. Data presented are classified by industry and asset size.

Third quarter 2006 advance data for U.S. Manufacturing, Mining, and Wholesale Trade Corporations are scheduled for release on December 12, 2006, and for U.S. Retail Trade Corporations on January 9, 2007.

TABLE 1. INCOME STATEMENT FOR U.S. RETAIL TRADE CORPORATIONS - ASSETS $50 MILLION AND OVER


                                                      2Q      1Q       2Q
                  Item                             2006    2006(1)  2005(1)
                                                      (million dollars)

Net sales, receipts, and operating revenues.... 484,174  464,080  442,583
Less: Depreciation, depletion, and amortization   8,939    8,677    8,218
Less: All other operating costs and expenses... 452,367  432,175  413,273
                                                
  Income (or loss) from operations.............  22,868   23,228   21,092

Interest Expense ..............................   3,483    3,297    3,046
All other nonoperating income (expense)........   2,080    2,798    3,062  

  Income (or loss) before income taxes.........  21,465   22,728   21,108

Less: Provision for current and deferred         
  domestic income taxes........................   7,876    6,767    7,231
                                                 
  Income (or loss) after income taxes..........  13,589   15,961   13,876
                                                 
Cash dividends charged to retained earnings                              
  in current quarter...........................   3,206    3,537    3,226
                                                 
  Net income retained in business..............  10,383   12,424   10,650
                                                 
Retained earnings at beginning of quarter...... 265,636  259,947  237,083
Other direct credits (or charges) to             
  retained earnings (net)......................  (2,989)  (4,989)  (2,896)
                                                            
Retained earnings at end of quarter............ 273,031  267,382  244,837

(1) Revised.

SOURCE:Quarterly Financial Report for Retail Trade Corporations--QFR-06-2, October 2006. U.S. Census Bureau, October 2006.

TABLE 2. INCOME STATEMENT RATIOS FOR U.S. RETAIL TRADE CORPORATIONS - ASSETS $50 MILLION AND OVER


                                                     2Q     1Q       2Q
                  Item                             2006   2006(1)  2005(1)
                                                          (cents)

Net sales, receipts, and operating revenues....   100.0   100.0    100.0
Less: Depreciation, depletion, and amortization     1.8     1.9      1.9
Less: All other operating costs and expenses...    93.4    93.1     93.4
                                                   
  Income (or loss) from operations.............     4.7     5.0      4.8

Interest Expense ..............................     0.7     0.7      0.7                         
All other nonoperating income (expense)........     0.4     0.6      0.7 
                                                  
  Income (or loss) before income taxes.........     4.4     4.9      4.8
                                                  
Less: Provision for current and deferred            
  domestic income taxes........................     1.6     1.5      1.6 
                                                    
  Income (or loss) after income taxes..........     2.8     3.4      3.1

(1) Revised.

SOURCE: Quarterly Financial Report for Retail Trade Corporations--QFR-06-2, October 2006. U.S. Census Bureau, October 2006.

TABLE 3. OPERATING RATIOS FOR U.S. RETAIL TRADE CORPORATIONS - ASSETS $50 MILLION AND OVER


                                                     2Q      1Q       2Q
                  Item                             2006    2006(1)  2005(1)
                                                          (percent)

Annual rate of profit on stockholders' equity
  at end of period:
    Before income taxes.........................  22.85   24.31    24.98
    After income taxes..........................  14.46   17.07    16.42
                                                            
Annual rate of profit on total assets:                                  
    Before income taxes.........................   9.62   10.33    10.47
    After income taxes..........................   6.09    7.26     6.88

(1) Revised.

SOURCE: Quarterly Financial Report for Retail Trade Corporations--QFR-06-2, October 2006. U.S. Census Bureau, October 2006.

RELEASE INFORMATION

Schedule of Advance Data Release Dates: 2006
Economic Indicator Release Schedule


Quarter      Manufacturing, Mining, and Wholesale Trade     Retail Trade


Third  2006           December 12

Questions concerning this advance report should be directed to Contact:
Yolando St.George (301) 763-6600 or John Seabold (301) 763-3386.

e-mail: csd.qfr@census.gov

Source: U.S. Census Bureau, Company Statistics Division
Maintained by Traci Gillespie-Brown
Revised Wednesday, 04-Mar-2009 14:35:12 EST.

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