[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--THIRD QUARTER 1996

December 1996-------------------Released 10A.M. EDT, December 16, 1996 (CB-96-209)
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.


Manufacturers' After-Tax Profits Bar Graph

Manufacturing corporations` seasonally adjusted after-tax profits averaged 6.6 cents per dollar of sales for the third quarter of 1996, up 0.4 (+/-0.20) cents from the second quarter of 1996. The Commerce Department`s Bureau of the Census also reported that on an unadjusted basis, after-tax profits for the third quarter averaged 6.7 cents per dollar of sales, showing no significant change from the preceding quarter, but up 0.9 (+/-0.18) cents from the same quarter in 1995.

For the third quarter of 1996, manufacturers` seasonally adjusted after-tax profits were $62.6 billion, up $5.2 (+/-1.0) billion from last quarter. On an unadjusted basis, third quarter after-tax profits were $63.1 billion, showing no significant change from last quarter, but up $12.4 (+/-0.9) billion from the same quarter a year ago.

Unadjusted durable manufacturers` after-tax profits for the third quarter of 1996 were $27.2 billion, down $3.5 billion or 11.5 percent (+/-2.6%) when compared to the second quarter of 1996. Most underlying industry categories were down. Motor vehicles` decline of $2.3 (+/-0.1) billion, the largest of the group, was due primarily to lower operating profits. Also down were machinery, instruments, aircraft, and nonferrous metals. Fabricated metals and stone, clay, and glass reported increases.

When compared to the third quarter of 1995, total durables were up $6.3 (+/-0.7) billion from that quarter`s after-tax profit of $20.8 billion, with the underlying industries showing mixed results. Machinery, fabricated metals, motor vehicles, lumber and wood, and aircraft reported increases. Machinery`s $3.8 (+/-0.3) billion increase was due chiefly to the absence of significant nonrecurring charges reported last year. Electrical machinery, nonferrous metals, instruments, and iron and steel reported decreases in earnings.

Unadjusted nondurable manufacturers` after-tax profits for the third quarter of 1996 were $35.9 billion, up $3.7 billion or 11.4 percent (+/-1.8%) when compared to the second quarter of 1996. The underlying industry categories showed mixed results. Food, printing, and apparel reported sharp increases, due chiefly to improved operating profits. The $1.7 (+/-0.2) billion increase in the residual of chemicals category was due principally to gains from asset sales. Drugs also was up. Petroleum, industrial chemicals, and rubber were down. Petroleum`s $1.6 (+/-0.1) billion decline was due to lower operating profits and decreased foreign equity earnings.

When compared to the same quarter in 1995, nondurable manufacturers` profits were up $6.0 billion or 20.2 percent (+/-2.3%). Most underlying industry categories reported upturns in after-tax profits. Improved operating margins were responsible for the increases reported in printing, food, textiles, and rubber categories. The $2.8 (+/-0.2) increase in residual of chemicals was due primarily to gains from asset sales. The increases reported in petroleum and industrial chemicals were due primarily to improved operating profits and the absence of significant nonrecurring charges reported in the third quarter of 1995. Paper and drugs were down. Paper`s decrease of $1.8 (+/-0.2) billion was due chiefly to lower operating profits.

Manufacturers` seasonally adjusted sales for the third quarter of 1996 were $944.2 billion, up $21.4 billion or 2.3 percent (+/-1.0%) from last quarter. On an unadjusted basis, sales were $940.4 billion, showing little change from last quarter, but up $59.2 billion or 6.7 percent (+/-0.9%) from the third quarter of 1995.

Seasonally adjusted sales at the nondurable level were $459.3 billion, up $7.7 billion or 1.7 percent (+/-1.3%) from last quarter. Seasonally adjusted durable manufacturers` sales were $484.8 billion, up $13.8 billion or 2.9 percent (+/-1.5%) from last quarter. Unadjusted sales at the nondurable manufacturing level were $464.3 billion, up $8.2 billion or 1.8 percent (+/-1.3%) from last quarter and up $29.0 billion or 6.7 percent (+/-1.2%) from the third quarter of 1995. Unadjusted durable manufacturers` sales were $476.1 billion, down $9.3 billion or 1.9 percent (+/-1.5%) when compared to the second quarter of 1996. On a same quarter a year ago basis, durable manufacturers` sales were up $30.2 billion or 6.8 percent (+/-1.9%).

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

These advance data, based on quarterly financial reports from about 7,800 corporations, were released today from the Quarterly Financial Report for Manufacturing, Mining, and Trade Corporations--Third Quarter 1996 (QFR-96-3). 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 $33 domestic and $41.25 foreign. Remittances from foreign countries must be by international money order or by draft on a U.S. bank.

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. Fourth quarter 1996 advance data are scheduled for release on April 7, 1997.

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/ftp/pub/csd/www/qfr.html).


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

                                                   Seasonally Adjusted
                                                 3Q        2Q*       3Q*   
                                               1996      1996(1)   1995(1) 
Rate of return (after taxes):
 Cents per dollar of sales ................     6.6       6.2       5.7
 Percent on equity (annual rate) ..........      NA        NA        NA    

                                                   (million dollars) 
Net Sales.................................. 944,171   922,751   884,605
 Income after income taxes ................  62,608    57,425    50,127
 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 third quarter of 1995 have been restated to reflect this change. (1) Revised.

SOURCE: Quarterly Financial Report for Manufacturing, Mining, and Trade Corporations--QFR-96-3, December 1996.


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



                                                       Unadjusted
                                                 3Q        2Q*       3Q*   
                                               1996      1996(1)   1995(1) 
Rate of return (after taxes):
 Cents per dollar of sales ................     6.7       6.7       5.8
 Percent on equity (annual rate) ..........    18.6      19.0      16.2    

                                                   (million dollars) 
Net Sales.................................. 940,358   941,393   881,182
 Income after income taxes ................  63,114    62,966    50,723
 Dividends paid (cash) ....................  22,270    26,637    20,980

* 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 third quarter of 1995 have been restated to reflect this change. (1) Revised.

SOURCE: Quarterly Financial Report for Manufacturing, Mining, and Trade Corporations--QFR-96-3, December 1996.


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


                                                         Sales
                                                 3Q        2Q*       3Q*
                Industry Group                 1996      1996(1)   1995(1)
                                                   (million dollars)
All manufacturing corporations ............  940,358   941,393   881,182

Nondurable goods ..........................  464,272   456,035   435,304
  Food and tobacco.........................  124,372   120,289   114,794
  Textiles ................................   17,838    17,588    16,726 
  Apparel(2) ..............................   18,748    16,869    18,670
  Paper ...................................   40,946    40,841    44,316
  Printing ................................   45,157    42,577    41,418
  Chemicals ...............................  104,578   104,865   100,864
   Industrial chemicals and synthetics(3)..   40,806    40,132    38,817
   Drugs(3) ...............................   28,056    27,924    27,533
   Residual of chemicals(3)................   35,715    36,810    34,515
  Petroleum ...............................   82,926    82,083    70,450
  Rubber ..................................   29,706    30,922    28,066

Durable goods .............................  476,085   485,358   445,878
  Stone, clay, and glass ..................   18,952    18,338    16,660
  Primary metals ..........................   36,174    37,933    37,734
   Iron and steel(3) ......................   17,565    17,827    17,484
   Nonferrous metals(3)....................   18,609    20,106    20,250
  Fabricated metals .......................   43,683    42,072    39,908
  Machinery ...............................  100,747   103,361    94,403
  Electrical machinery ....................   85,909    85,720    80,122
  Transportation Equipment ................  119,645   128,320   110,595
   Motor vehicles and equipment(3) ........   78,380    86,205    73,395
   Aircraft, guided missiles, and parts(3).   32,448    33,188    28,805
  Instruments .............................   29,555    29,685    29,865
  Other durable goods .....................   41,420    39,928    36,591
   Lumber and wood products(3) ............   19,553    17,923    15,524
   Furniture and fixtures(3) ..............   13,478    13,786    12,379
   Miscellaneous manufacturing(3) .........    8,389     8,219     8,688

Mining(4) .................................   13,650    13,193    11,263
Wholesale trade(4) ........................  256,002   258,443   228,033
Retail trade(4) ...........................       NA   234,899   221,486

* 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 third quarter of 1995 have 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-96-3, December 1996.


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

                                                    Operating Profits*
                                                 3Q        2Q**      3Q**
                Industry Group                 1996      1996(1)   1995(1)
                                                   (million dollars)
All manufacturing corporations ............   72,464    76,019    69,628

Nondurable goods ..........................   42,290    39,746    40,717
  Food and tobacco.........................   11,341     9,537    10,089
  Textiles ................................    1,247     1,095       793
  Apparel(2) ..............................    1,321       496     1,260
  Paper ...................................    3,585     3,356     5,727
  Printing ................................    4,641     3,694     3,639
  Chemicals ...............................   11,887    12,509    12,169 
   Industrial chemicals and synthetics(3)..    4,426     4,935     4,180 
   Drugs(3) ...............................    3,456     3,534     4,237 
   Residual of chemicals(3)................    4,004     4,040     3,752 
  Petroleum ...............................    6,017     6,380     5,230 
  Rubber ..................................    2,251     2,678     1,810

Durable goods .............................   30,175    36,274    28,911 
  Stone, clay, and glass ..................    2,363     2,020     1,895
  Primary metals ..........................    2,062     2,556     2,909
   Iron and steel(3) ......................      915     1,050     1,149
   Nonferrous metals(3)....................    1,147     1,506     1,759
  Fabricated metals .......................    3,945     3,560     2,765
  Machinery ...............................    4,309     6,425     3,805
  Electrical machinery ....................    6,903     7,769     7,817
  Transportation Equipment ................    5,217     8,536     4,338
   Motor vehicles and equipment(3) ........    1,797     4,754     1,582
   Aircraft, guided missiles, and parts(3).    2,750     3,027     2,190
  Instruments .............................    2,166     2,405     2,947
  Other durable goods .....................    3,211     3,003     2,435
   Lumber and wood products(3) ............    1,606     1,275       963
   Furniture and fixtures(3) ..............    1,057       971       840
   Miscellaneous manufacturing(3) .........      548       757       632

Mining(4) .................................    1,845     1,826      (264)
Wholesale trade(4) ........................    6,317     4,697     4,990
Retail trade(4) ...........................       NA     8,976     7,743

*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 third quarter of 1995 have 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-96-3, December 1996.


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

                                                    After-Tax Profits
                                                 3Q        2Q*       3Q*
                Industry Group                 1996      1996(1)   1995(1)
                                                   (million dollars)
All manufacturing corporations ............   63,114    62,966    50,723

Nondurable goods ..........................   35,926    32,239    29,884
  Food and tobacco ........................    7,757     5,822     6,696
  Textiles ................................      667       595       193
  Apparel(2) ..............................      838       271       894
  Paper ...................................    1,734     1,592     3,509
  Printing ................................    3,022     1,955     1,945
  Chemicals ...............................   13,853    12,140    10,479
   Industrial chemicals and synthetics(3)..    3,492     3,845     2,574
   Drugs(3) ...............................    4,646     4,269     5,019
   Residual of chemicals(3)................    5,715     4,025     2,887
  Petroleum ...............................    6,611     8,183     5,072
  Rubber ..................................    1,444     1,681     1,098
                                            
Durable goods .............................   27,188    30,727    20,839
  Stone, clay, and glass ..................    1,462     1,230     1,343
  Primary metals ..........................    1,398     1,750     2,038
   Iron and steel(3) ......................      580       644       718
   Nonferrous metals(3) ...................      818     1,106     1,320
  Fabricated metals .......................    3,148     2,412     1,353
  Machinery ...............................    5,873     6,562     2,033
  Electrical machinery ....................    5,919     6,201     6,811
  Transportation equipment ................    5,523     8,245     4,063
   Motor vehicles and equipment(3) ........    3,324     5,629     2,006
   Aircraft, guided missiles, and parts(3).    1,809     2,110     1,600
  Instruments .............................    1,876     2,439     2,050
  Other durable goods .....................    1,989     1,887     1,149
   Lumber and wood products(3) ............      996       936       368
   Furniture and fixtures(3) ..............      616       527       516
   Miscellaneous manufacturing(3) .........      378       424       265
                                          
Mining(4) .................................    1,897     1,413      (438) 
Wholesale trade(4) ........................    3,595     3,146     2,930
Retail trade(4) ...........................       NA     3,920     3,593

* 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 third quarter of 1995 have 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-96-3, December 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 ............................  678,352  684,195  698,426  699,243
    1992 ............................  704,513  718,059  729,593  737,371
    1993 ............................  743,797  750,805  753,431  766,911
    1994 ............................  784,626  802,118  825,576  842,646
    1995 ............................  871,370  870,723  884,605  898,039
    1996 ............................  910,365  922,751  944,171         
All nondurable manufacturing:
    1991 ............................  363,417  360,503  365,809  366,854
    1992 ............................  367,320  374,321  378,393  380,121
    1993 ............................  381,908  382,453  379,356  381,550
    1994 ............................  387,248  394,455  405,526  410,786
    1995 ............................  425,362  426,993  430,664  438,022
    1996 ............................  443,876  451,667  459,337         
All durable manufacturing:
    1991 ............................  314,935  323,692  332,617  332,389
    1992 ............................  337,193  343,738  351,200  357,250
    1993 ............................  361,889  368,352  374,075  385,361
    1994.............................  397,378  407,663  420,050  431,860
    1995 ............................  446,008  443,730  453,941  460,017
    1996 ............................  466,489  471,084  484,834         
 
* 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 third quarter of 1995 have been restated to reflect this change.

(1)Revised.


SOURCE: Quarterly Financial Report for Manufacturing, Mining, and Trade Corporations--QFR-96-3, December 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 ............................   19,902   17,937   15,949   13,785   
    1992 ............................ (42,322)   24,389   26,225   14,956
    1993 ............................   13,030   19,366   23,824   27,642
    1994 ............................   37,294   41,155   46,081   52,068
    1995 ............................   54,238   51,886   50,127   43,821
    1996 ............................   52,747   57,425   62,608         
All nondurable manufacturing:
    1991 ............................   16,912   14,792   14,992   13,384
    1992 ............................  (3,820)   18,182   17,318   15,139
    1993 ............................   13,135   15,229   12,073   15,722
    1994 ............................   19,661   19,706   23,211   26,292
    1995 ............................   26,995   27,929   28,686   21,604
    1996 ............................   29,297   31,854   34,778         
All durable manufacturing:
    1991 ............................    2,990    3,145      957      401
    1992 ............................ (38,502)    6,207    8,907    (183)
    1993 ............................    (105)    4,137   11,751   11,920
    1994 ............................   17,633   21,449   22,870   25,776
    1995 ............................   27,243   23,957   21,441   22,217
    1996 ............................   23,450   25,571   27,830         
 
* 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 third quarter of 1995 have been restated to reflect this change.

(1)Revised


SOURCE: Quarterly Financial Report for Manufacturing, Mining, and Trade Corporations--QFR-96-3, December 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.


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