[Commerce Seal]

UNITED STATES BUREAU OF THE CENSUS

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



ADVANCE DATA FROM THE QUARTERLY FINANCIAL REPORT FOR MANUFACTURING, MINING, AND TRADE CORPORATIONS--SECOND QUARTER 1996

September 1996--------------------Released 10A.M. EDT, Sept 13, 1996 (CB-96-93)
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 manufacturing industries are not seasonally adjusted.


Manufacturers' After-Tax Profits Bar Graph

Manufacturing corporations` seasonally adjusted after-tax profits averaged 6.2 cents per dollar of sales for the second quarter of 1996, up 0.4 (+/-0.18) cents from the first quarter of 1996. The Commerce Department`s Bureau of the Census also reported that on an unadjusted basis, after-tax profits for the second quarter averaged 6.7 cents per dollar of sales, up 0.9 (+/-0.18) cents from the preceding quarter and up 0.2 (+/-0.18) cents from the same quarter in 1995.

For the second quarter of 1996, manufacturers` seasonally adjusted after-tax profits were $57.0 billion, up $4.2 (+/-0.9) billion from last quarter. On an unadjusted basis, second quarter after-tax profits were $63.1 billion, up $11.7 (+/-0.9) billion from last quarter and up $5.5 (+/-0.9) billion from the same quarter a year ago.

Unadjusted durable manufacturers` after-tax profits for the second quarter of 1996 were $31.8 billion, up $8.3 billion or 35.2 percent (+/-3.9%) when compared to the first quarter of 1996. Most underlying industry categories were up. Machinery and motor vehicles led the group with increases of $2.7 (+/-0.5) and $2.3 (+/-0.1) billion, respectively. Machinery`s increase was due primarily to improved operating profits and the absence of significant nonrecurring charges reported last quarter. Motor vehicles` increase was due principally to higher operating profits, as were the improvements in stone, clay, and glass, lumber and wood, and iron and steel. Instruments` increase was due chiefly to an increase in foreign equity earnings. Aircraft`s improvement was a result of increased operating profits, higher foreign equity earnings, and gains from asset sales more than offsetting substantial nonrecurring charges taken this quarter for restructuring.

When compared to the second quarter of 1995, total durables were up $2.6 (+/-0.8) billion from that quarter`s after-tax profit of $29.2 billion, with the underlying industries showing mixed results. Aircraft and motor vehicles reported the largest increases. Aircraft`s $1.2 (+/-0.04) billion increase was due primarily to increased operating profits, higher foreign equity earnings, and gains from asset sales more than offsetting substantial nonrecurring charges taken this quarter for restructuring. Motor vehicles` $0.8 (+/-0.1) billion increase was a result of improved operating profits. Increases were also reported by stone, clay, and glass and miscellaneous manufacturing. Electrical machinery and nonferrous metals reported declines in earnings over the same quarter last year.

Unadjusted nondurable manufacturers` after-tax profits for the second quarter of 1996 were $31.3 billion, up $3.4 billion or 12.3 percent (+/-1.8%) when compared to the first quarter of 1996. The underlying industry categories showed mixed results. Petroleum, drugs, textiles, rubber, and industrial chemicals were up. The increases reported by petroleum and drugs of $2.8 (+/-0.1) and $0.7 (+/-0.1) billion were due chiefly to improved profits and increased dividend income from foreign subsidiaries. Residual chemicals` improvement of $0.8 (+/-0.1) billion was related to increased operating income and gains from asset sales. Printing, paper, and food reported declines. Printing`s downturn of $1.0 (+/-0.2) billion resulted from a decline in foreign equity earnings and the inclusion of significant gains from asset sales in the first quarter that more than offset an improvement in operating profits.

When compared to the same quarter in 1995, nondurable manufacturers` profits were up $2.9 billion or 10.4 percent (+/-1.7%). The underlying industry categories showed mixed results. Petroleum, residual chemicals, drugs, and rubber were up. Petroleum`s $4.3 (+/-0.1) billion increase was due primarily to improved in operating profits, increased dividend and equity income from foreign subsidiaries, and the absence of significant nonrecurring charges reported in the second quarter of 1995. Paper, food, industrial chemicals, and printing were down. Paper`s decrease of $1.5 (+/-0.1) billion was due chiefly to a decrease in operating profits.

Manufacturers` seasonally adjusted sales for the second quarter of 1996 were $918.7 billion, up $11.9 billion or 1.3 percent (+/-1.1%) from last quarter. On an unadjusted basis, sales were $938.6 billion, up $60.0 billion or 6.8 percent (+/-1.1%) from last quarter and up $49.6 billion or 5.6 percent (+/-0.9%) from the second quarter of 1995.

Seasonally adjusted sales at the nondurable level were $447.0 billion, up $6.8 billion or 1.5 percent (+/-1.2%) from last quarter. Seasonally adjusted durable manufacturers` sales were $471.7 billion, up $5.1 billion or 1.1 percent (+/-1.4%) from last quarter. Unadjusted sales at the nondurable manufacturing level were $451.7 billion, up $25.0 billion or 5.9 percent (+/-1.2%) from last quarter and up $20.3 billion or 4.7 percent (+/-1.0%) from the second quarter of 1995. Unadjusted durable manufacturers` sales were $486.9 billion, up $35.0 billion or 7.7 percent (+/-1.4%) when compared to the first quarter of 1996. On a same quarter a year ago basis, durable manufacturers` sales were up $29.3 billion or 6.4 percent (+/-1.2%).

Also included in this release are second quarter 1996 data for large mining and wholesale trade corporations.

These advance data, based on quarterly financial reports from about 7,900 corporations, were released today from the Quarterly Financial Report for Manufacturing, Mining, and Trade Corporations--Second Quarter 1996 (QFR-96-2). 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. The publication becomes available for sale approximately two weeks from the date of this release from the Superintendent of Documents, General Printing Office, Washington, D.C. 20402 (202-783-3238). The cost for an annual subscription is $24 and a single copy is $10. Remittances from foreign countries must be by international money order or by draft on a U.S. bank, $30 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- 763-INFO(4636)). The annual subscription cost is $84; $66 for the first diskette and $6 for each additional diskette. Third quarter 1996 advance data are scheduled for release on December 16, 1996.

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.

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 through the Census Bureau`s on-line information service--CENDATA. Further information about accessing CENDATA can be obtained from Dialog Information Services, Inc. (1-800-334-2564) and CompuServe (1-800-848-8199). The CENDATA staff at the Bureau of the Census (301-457-1214) can provide content information and general guidance. The release is also available on the Internet at this address: (http://www.census.gov/ftp/pub/csd/www/qfr.html).


TABLE 1. PART A--QUARTERLY FINANCIAL REPORT FOR MANUFACTURING CORPORATION

                                                   Seasonally Adjusted
                                                 2Q        1Q*       2Q*   
                                               1996      1996(1)   1995(1) 
Rate of return (after taxes):
 Cents per dollar of sales ................     6.2       5.8       5.9
 Percent on equity (annual rate) ..........      NA        NA        NA    

                                                   (million dollars) 
Net Sales.................................. 918,668   906,771   869,806
 Income after income taxes ................  57,001    52,841    51,366
 Dividends paid (cash) ....................      NA        NA        NA


* Beginning in the fourth quarter of 1995 the threshold for sampling on less than a 1:1 ratio was raised from $50 million to $250 million in assets. To provide comparability, data for the second quarter of 1995 has been restated to reflect this change.

(1) Revised.


SOURCE: Quarterly Financial Report for Manufacturing, Mining, and Trade Corporations--QFR-96-2, Sept 1996.


TABLE 1. PART B--QUARTERLY FINANCIAL REPORT FOR MANUFACTURING CORPORATIONS

                                                       Unadjusted
                                                 2Q        1Q*       2Q*   
                                               1996      1996(1)   1995(1) 
Rate of return (after taxes):
 Cents per dollar of sales ................     6.7       5.8       6.5
 Percent on equity (annual rate) ..........    19.1      15.9      18.6    

                                                   (million dollars) 
Net Sales.................................. 938,617   878,662   889,012
 Income after income taxes ................  63,094    51,393    57,560
 Dividends paid (cash) ....................  26,613    19,325    20,646


* Beginning in the fourth quarter of 1995 the threshold for sampling on less than a 1:1 ratio was raised from $50 million to $250 million in assets. To provide comparability, data for the second quarter of 1995 has been restated to reflect this change.

(1) Revised.


SOURCE: Quarterly Financial Report for Manufacturing, Mining, and Trade Corporations--QFR-96-2, Sept 1996.


TABLE 2. PART A--SALES AND PROFITS OF CORPORATIONS ENGAGED IN MANUFACTURING, MINING, AND TRADE--NOT SEASONALLY ADJUSTED

                                                         Sales
                                                 2Q        1Q*       2Q*
                Industry Group                 1996      1996(1)   1995(1)
                                                   (million dollars)
All manufacturing corporations ............  938,617   878,662   889,012

Nondurable goods ..........................  451,730   426,733   431,422
  Food and tobacco.........................  120,086   115,425   112,668
  Textiles ................................   17,456    15,889    16,818 
  Apparel(2) ..............................   16,816    15,327    16,699
  Paper ...................................   40,793    39,269    43,393
  Printing ................................   42,725    41,397    39,153
  Chemicals ...............................  102,024    98,545   100,668
   Industrial chemicals and synthetics(3)..   40,132    39,258    41,137
   Drugs(3) ...............................   27,910    28,101    26,804
   Residual of chemicals(3)................   33,982    31,187    32,726
  Petroleum ...............................   81,384    72,541    73,544
  Rubber ..................................   30,445    28,340    28,480

Durable goods .............................  486,887   451,928   457,589
  Stone, clay, and glass ..................   18,299    14,342    16,173
  Primary metals ..........................   37,748    35,448    39,345
   Iron and steel(3) ......................   17,827    16,385    18,366
   Nonferrous metals(3)....................   19,921    19,063    20,979
  Fabricated metals .......................   41,722    39,847    39,286
  Machinery ...............................  102,773    96,337    95,270
  Electrical machinery ....................   85,930    80,250    76,516
  Transportation Equipment ................  129,194   117,601   123,556
   Motor vehicles and equipment(3) ........   87,055    80,711    84,108
   Aircraft, guided missiles, and parts(3).   33,188    28,607    31,054
  Instruments .............................   32,060    31,975    30,786
  Other durable goods .....................   39,162    36,129    36,657
   Lumber and wood products(3) ............   17,150    14,977    15,520
   Furniture and fixtures(3) ..............   13,793    12,679    12,533
   Miscellaneous manufacturing(3) .........    8,219     8,472     8,604

Mining(4) .................................   13,901    13,016    11,210
Wholesale trade(4) ........................  260,018   251,756   229,594
Retail trade(4) ...........................       NA   225,342   218,442


* Beginning in the fourth quarter of 1995 the threshold for sampling on less than a 1:1 ratio was raised from $50 million to $250 million in assets. To provide comparability, data for the second quarter of 1995 has been restated to reflect this change.
**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 quarterly results of companies in those divisions drawn into the sample in the fall of 1995 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-96-2, Sept 1996.


TABLE 2. PART B--SALES AND PROFITS OF CORPORATIONS ENGAGED IN MANUFACTURING, MINING, AND TRADE--NOT SEASONALLY ADJUSTED


Operating Profits* 2Q 1Q** 2Q** Industry Group 1996 1996(1) 1995(1) (million dollars) All manufacturing corporations ............ 76,035 61,048 75,295 Nondurable goods .......................... 39,091 34,330 41,939 Food and tobacco......................... 9,394 8,437 9,877 Textiles ................................ 1,079 803 1,065 Apparel(2) .............................. 481 532 551 Paper ................................... 3,396 4,099 5,427 Printing ................................ 3,697 2,979 3,763 Chemicals ............................... 12,022 10,691 13,863 Industrial chemicals and synthetics(3).. 4,935 4,541 5,451 Drugs(3) ............................... 3,526 3,027 4,880 Residual of chemicals(3)................ 3,561 3,123 3,531 Petroleum ............................... 6,400 4,780 5,288 Rubber .................................. 2,621 2,008 2,105 Durable goods ............................. 36,944 26,719 33,356 Stone, clay, and glass .................. 2,007 733 1,754 Primary metals .......................... 2,548 2,017 3,525 Iron and steel(3) ...................... 1,050 645 1,650 Nonferrous metals(3).................... 1,498 1,372 1,875 Fabricated metals ....................... 3,529 3,039 3,340 Machinery ............................... 6,562 4,187 5,367 Electrical machinery .................... 7,941 6,925 7,733 Transportation Equipment ................ 8,612 4,824 5,632 Motor vehicles and equipment(3) ........ 4,826 2,050 3,598 Aircraft, guided missiles, and parts(3). 3,027 2,134 1,315 Instruments ............................. 2,800 2,883 3,446 Other durable goods ..................... 2,944 2,110 2,559 Lumber and wood products(3) ............ 1,216 666 1,041 Furniture and fixtures(3) .............. 972 740 901 Miscellaneous manufacturing(3) ......... 757 704 616 Mining(4) ................................. 1,862 1,429 891 Wholesale trade(4) ........................ 4,433 5,194 4,724 Retail trade(4) ........................... NA 7,462 7,917


*Beginning in the fourth quarter of 1995 the threshold for sampling on less than a 1:1 ratio was raised from $50 million to $250 million in assets. To provide comparability, data for the second quarter of 1995 has been restated to reflect this change.

**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 quarterly results of companies in those divisions drawn into the sample in the fall of 1995 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-96-2, Sept 1996.


TABLE 2. PART C--SALES AND PROFITS OF CORPORATIONS ENGAGED IN MANUFACTURING, MINING, AND TRADE--NOT SEASONALLY ADJUSTED


After-Tax Profits 2Q 1Q* 2Q* Industry Group 1996 1996(1) 1995(1) (million dollars) All manufacturing corporations ............ 63,094 51,393 57,560 Nondurable goods .......................... 31,310 27,887 28,372 Food and tobacco ........................ 5,781 6,111 6,713 Textiles ................................ 587 207 390 Apparel(2) .............................. 249 174 198 Paper ................................... 1,758 2,286 3,228 Printing ................................ 1,958 2,952 2,090 Chemicals ............................... 11,272 9,565 10,523 Industrial chemicals and synthetics(3).. 3,845 3,546 4,009 Drugs(3) ............................... 4,270 3,614 3,942 Residual of chemicals(3)................ 3,157 2,404 2,573 Petroleum ............................... 8,067 5,264 3,798 Rubber .................................. 1,638 1,329 1,432 Durable goods ............................. 31,784 23,506 29,187 Stone, clay, and glass .................. 1,205 418 722 Primary metals .......................... 1,750 1,303 2,062 Iron and steel(3) ...................... 644 191 617 Nonferrous metals(3) ................... 1,106 1,112 1,445 Fabricated metals ....................... 2,384 2,146 2,117 Machinery ............................... 6,767 4,023 6,354 Electrical machinery .................... 6,302 6,065 6,702 Transportation equipment ................ 8,274 5,679 6,246 Motor vehicles and equipment(3) ........ 5,650 3,386 4,851 Aircraft, guided missiles, and parts(3). 2,113 1,522 930 Instruments ............................. 3,238 2,608 3,369 Other durable goods ..................... 1,863 1,264 1,615 Lumber and wood products(3) ............ 912 377 738 Furniture and fixtures(3) .............. 527 421 600 Miscellaneous manufacturing(3) ......... 424 466 277 Mining(4) ................................. 1,280 807 646 Wholesale trade(4) ........................ 3,206 3,407 2,606 Retail trade(4) ........................... NA 2,838 3,621


* Beginning in the fourth quarter of 1995 the threshold for sampling on less than a 1:1 ratio was raised from $50 million to $250 million in assets. To provide comparability, data for the second quarter of 1995 has been restated to reflect this change.
**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 quarterly results of companies in those divisions drawn into the sample in the fall of 1995 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-96-2, Sept 1996.


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 ............................ 677,922 683,604 698,747 699,899 1992 ............................ 703,980 717,725 729,872 737,718 1993 ............................ 743,449 750,760 753,447 767,236 1994 ............................ 784,397 801,700 825,878 843,245 1995 ............................ 871,069 869,806 881,880 896,213 1996 ............................ 906,771 918,668 All nondurable manufacturing: 1991 ............................ 362,858 360,061 366,303 367,344 1992 ............................ 366,612 374,145 378,828 380,308 1993 ............................ 381,418 382,613 379,428 381,635 1994 ............................ 387,012 394,396 405,733 410,912 1995 ............................ 425,194 426,687 428,047 435,489 1996 ............................ 440,154 446,959 All durable manufacturing: 1991 ............................ 315,064 323,543 332,444 332,555 1992 ............................ 337,368 343,580 351,044 357,410 1993 ............................ 362,031 368,147 374,019 385,601 1994............................. 397,385 407,304 420,145 432,333 1995 ............................ 445,875 443,119 453,833 460,724 1996 ............................ 466,617 471,709


* Beginning in the fourth quarter of 1995 the threshold for sampling on less than a 1:1 ratio was raised from $50 million to $250 million in assets. To provide comparability, data for the second quarter of 1995 has been restated to reflect this change.

(1)Revised.


SOURCE: Quarterly Financial Report for Manufacturing, Mining, and Trade Corporations--QFR-96-2, Sept 1996.


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 ............................ 19,886 17,794 16,016 13,905 1992 ............................ (42,347) 24,173 26,338 15,140 1993 ............................ 12,975 19,039 24,026 27,887 1994 ............................ 37,201 40,718 46,363 52,385 1995 ............................ 54,094 51,366 50,493 44,480 1996 ............................ 52,841 57,001 All nondurable manufacturing: 1991 ............................ 16,923 14,636 15,094 13,449 1992 ............................ (3,813) 17,941 17,498 15,242 1993 ............................ 13,112 14,881 12,354 15,874 1994 ............................ 19,598 19,251 23,581 26,501 1995 ............................ 26,881 27,410 28,449 21,499 1996 ............................ 28,402 30,408 All durable manufacturing: 1991 ............................ 2,963 3,158 922 456 1992 ............................ (38,534) 6,232 8,840 (102) 1993 ............................ (137) 4,158 11,672 12,013 1994 ............................ 17,603 21,467 22,782 25,884 1995 ............................ 27,213 23,956 22,044 22,981 1996 ............................ 24,439 26,593


* Beginning in the fourth quarter of 1995 the threshold for sampling on less than a 1:1 ratio was raised from $50 million to $250 million in assets. To provide comparability, data for the second quarter of 1995 has been restated to reflect this change.

(1)Revised


SOURCE: Quarterly Financial Report for Manufacturing, Mining, and Trade Corporations--QFR-96-2, Sept 1996.


This report is offered for sale by the Superintendent of Documents, U.S. Government Printing Office, Washington, D.C. 20402. The annual subscription rate is $24; single copy $10. Remittances from foreign countries must be by international money order or by draft on a U.S. bank, $30 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)763-INFO(4636). The annual subscription cost is $84; $66 for the first diskette and $6 for each additional diskette. Questions concerning this report should be directed to Ronald Lee on (301) 763-5435 or Frank Hartman on (301) 763-7182.