[U.S. Department of 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--FIRST QUARTER 1997

June 1997-------------------Released 10 a.m. (EDT), Monday, June 16, 1997 (CB97-95)
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.


[Quarterly Financial Report for Manufacturing, Mining, and
Trade Corporations--Graphic]

Manufacturing corporations` seasonally adjusted after-tax profits averaged 6.2 cents per dollar of sales for the first quarter of 1997, up 0.2 (+/-0.13) cents from the fourth quarter of 1996. The Commerce Department`s Bureau of the Census also reported that on an unadjusted basis, after-tax profits for the first quarter averaged 6.2 cents per dollar of sales, up 0.8 (+/-0.13) cents from the preceding quarter and up 0.4 (+/-0.11) cents from the same quarter in 1996.

For the first quarter of 1997, manufacturers` seasonally adjusted after-tax profits were $59.3 billion, up $1.8 (+/-1.2) billion from last quarter. On an unadjusted basis, first quarter after-tax profits were $57.8 billion, up $4.7 (+/-1.2) billion from last quarter and up $6.4 (+/-1.0) billion from the same quarter a year ago.

Unadjusted durable manufacturers` after-tax profits for the first quarter of 1997 were $27.0 billion, up $2.0 billion or 7.8 percent (+/-4.0%) when compared to the fourth quarter of 1996, with the underlying industry categories showing mixed results. Motor vehicles, fabricated metals, lumber, iron and steel, nonferrous metals, and aircraft reported statistically significant increases. Motor vehicles` $1.8 (+/-0.1) billion increase, the largest of the group, was due chiefly to higher operating profits. Stone, clay, and glass reported a $0.8 billion loss for the quarter, down $1.4 (+/-0.02) billion from last quarter. The downturn in stone, clay, and glass was due principally to lower operating profits and the inclusion of signficant nonrecurring charges against first quarter income. Also reporting decreases were machinery and furniture and fixtures.

When compared to the first quarter of 1996, unadjusted durable manufacturers` profits were up $4.3 billion or 19.0 percent (+/-3.9%). The underlying industries showed mixed results. Machinery, electrical machinery, motor vehicles, lumber, iron and steel, and aircraft reported increases. Machinery`s $1.9 (+/-0.4) billion increase was due chiefly to higher operating profits and the absence of significant nonrecurring charges reported last year. The increases reported in electrical machinery and motor vehicles of $1.8 (+/-0.3) and $1.5 (+/-0.1) billion, respectively, were primarily a result of improved operating margins. Stone, clay, and glass` $1.2 (+/-0.03) billion decrease in earnings over the same quarter last year was due principally to the inclusion of significant nonrecurring charges in this quarter`s income. Instruments and miscellaneous manufacturing also reported decreases in earnings.

Unadjusted nondurable manufacturers` after-tax profits for the first quarter of 1997 were $30.8 billion, up $2.8 billion or 9.9 percent (+/-2.3%) when compared to the fourth quarter of 1996. Most underlying industries reported improved earnings. Industrial chemical`s increase of $1.2 (+/-0.2) billion was due primarily to improved operating profits and the absence of significant nonrecurring charges reported in the fourth quarter of 1996. Petroleum, rubber, drugs, residual of chemicals, and paper also reported increases. The decreases reported in food and printing of $1.6 (+/-0.3) and $0.8 (+/-0.2) billion, respectively, were due chiefly to lower operating profits.

When compared to the same quarter in 1996, unadjusted nondurable manufacturers` profits were up $2.1 billion or 7.3 percent (+/-1.9%). The underlying industry categories showed mixed results. Petroleum, drugs, apparel, and textiles were up. Petroleum`s $2.8 (+/-0.04) billion increase was primarily a result of improved operating profits and increased dividend and equity income from foreign subsidiaries. Drugs` improvement of $1.5 (+/-0.1) billion was related to increased operating profits, gains on asset sales, and the absence of significant nonrecurring charges reported in the first quarter of 1996. Paper, food, printing, industrial chemicals, and residual of chemicals were down. Paper`s decrease of $1.1 (+/-0.2) billion was due chiefly to a decrease in operating profits.

Manufacturers` seasonally adjusted sales for the first quarter of 1997 were $964.3 billion, showing no statistically significant change from last quarter. On an unadjusted basis, sales were $933.1 billion, down $42.4 billion or 4.4 percent (+/-0.9%) from last quarter, but up $48.3 billion or 5.5 percent (+/-1.0%) from the first quarter of 1996.

Seasonally adjusted sales at the nondurable level were $461.9 billion, showing no statistically significant change from last quarter. Seasonally adjusted durable manufacturers` sales were $502.5 billion, also showing no statistically significant change from last quarter. Unadjusted sales at the nondurable manufacturing level were $446.9 billion, down $22.1 billion or 4.7 percent (+/-1.3%) from last quarter, but up $19.5 billion or 4.6 percent (+/-1.2%) from the first quarter of 1996. Unadjusted durable manufacturers` sales were $486.2 billion, down $20.4 billion or 4.0 percent (+/-1.6%) when compared to the fourth quarter of 1996. On a same quarter a year ago basis, durable manufacturers` sales were up $28.8 billion or 6.3 percent (+/-1.6%).

Also included in this release are first quarter 1997 data for large mining and wholesale 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--First Quarter 1997 (QFR-97-1). 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.

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.

AVAILABILITY:

This report is available on the day of issue through the Department of Commerce`s on-line Economic Bulletin Board (202-482-1986) and on the Internet at < http://www.census.gov/csd/www/qfr.html>. See "Products."

The "Quarterly Financial Report for Manufacturing, Mining and Trade Corporations" publication series is offered for sale by the Superintendent of Documents, P.O. Box 371954, Pittsburgh, PA 15250-7954 (202-512-1800). Publications are available two weeks from the date of this release and phone orders are taken at (202) 512-1800 (see also the "Subscription order form"). The annual subscription rate is $33. [Remittances from foreign countries must be by international money order or by draft on a U.S. bank, $41.25 a year.]

Files are also available on 3.5 inch flexible diskettes from U.S. Department of Commerce, Bureau of the Census (MS1921), P.O. Box 277943, Atlanta, GA 30384-7943 (301-763-INFO(4636)). The annual subscription cost is $84; $66 for the first diskette and $6 for each additional diskette.

Questions regarding this report (or program) should be directed to Ronald Lee on (301) 763-5435 or Frank Hartman on (301) 763-7182.


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

           Item                                    Seasonally Adjusted
                                                 1Q        4Q        1Q    
                                               1997      1996(1)   1996(1) 
Rate of return (after taxes):
 Cents per dollar of sales ................     6.2       6.0       5.8
 Percent on equity (annual rate) ..........      NA        NA        NA    

                                                   (million dollars) 
Net Sales.................................. 964,314   959,797   914,879
 Income after income taxes ................  59,311    57,462    52,872
 Dividends paid (cash) ....................      NA        NA        NA
(1) Revised.

SOURCE: "Quarterly Financial Report for Manufacturing, Mining, and Trade Corporations" (QFR-97-1), U.S. Bureau of the Census, June 1997.


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

           Item                                        Unadjusted
                                                 1Q        4Q        1Q    
                                               1997      1996(1)   1996(1) 
Rate of return (after taxes):
 Cents per dollar of sales ................     6.2       5.4       5.8
 Percent on equity (annual rate) ..........    16.3      15.2      15.8    

                                                   (million dollars) 
Net Sales.................................. 933,082   975,528   884,789
 Income after income taxes ................  57,818    53,078    51,402
 Dividends paid (cash) ....................  20,739    24,438    20,048
(1) Revised.

SOURCE: "Quarterly Financial Report for Manufacturing, Mining, and Trade Corporations" (QFR-97-1), U.S. Bureau of the Census, June 1997.


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

                                                         Sales
                                                 1Q        4Q        1Q 
                Industry Group                 1997      1996(1)   1996(1)
                                                   (million dollars)
All manufacturing corporations ............  933,082   975,528   884,789

Nondurable goods ..........................  446,850   468,933   427,310
  Food and tobacco.........................  115,997   124,631   114,601
  Textiles ................................   17,095    17,474    15,997 
  Apparel(2) ..............................   16,623    18,919    15,203
  Paper ...................................   39,325    39,153    39,220
  Printing ................................   43,247    46,492    41,456
  Chemicals ...............................  103,416   103,176    99,852
   Industrial chemicals and synthetics(3)..   41,124    40,124    39,747
   Drugs(3) ...............................   28,490    28,646    26,295
   Residual of chemicals(3)................   33,802    34,406    33,810
  Petroleum ...............................   81,496    89,198    72,126
  Rubber ..................................   29,650    29,890    28,856

Durable goods .............................  486,232   506,595   457,479
  Stone, clay, and glass ..................   15,172    18,155    14,287
  Primary metals ..........................   36,447    36,040    35,926
   Iron and steel(3) ......................   18,308    17,573    16,606
   Nonferrous metals(3)....................   18,139    18,467    19,319
  Fabricated metals .......................   42,347    41,983    40,039
  Machinery ...............................  103,827   107,357    96,818
  Electrical machinery ....................   98,542   106,790    88,011
  Transportation Equipment ................  122,517   125,524   116,864
   Motor vehicles and equipment(3) ........   83,971    83,936    79,911
   Aircraft, guided missiles, and parts(3).   31,695    32,758    28,652
  Instruments .............................   26,826    28,297    28,951
  Other durable goods .....................   40,554    42,449    36,585
   Lumber and wood products(3) ............   18,053    18,451    15,533
   Furniture and fixtures(3) ..............   14,205    14,541    12,679
   Miscellaneous manufacturing(3) .........    8,297     9,457     8,373

Mining(4) .................................   15,807    15,492    12,362
Wholesale trade(4) ........................  268,391   272,957   250,724
Retail trade(4) ...........................       NA   271,926   227,573
(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-97-1), U.S. Bureau of the Census, June 1997.


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

                                                    Operating Profits*
                                                 1Q        4Q        1Q 
                Industry Group                 1997      1996(1)   1996(1)
                                                   (million dollars)
All manufacturing corporations ............   69,308    65,874    61,184

Nondurable goods ..........................   37,164    36,812    35,143
  Food and tobacco.........................   10,023    11,328     8,824
  Textiles ................................    1,063     1,111       813
  Apparel(2) ..............................    1,227       948       548
  Paper ...................................    2,652     2,665     3,988
  Printing ................................    3,701     4,718     2,960
  Chemicals ...............................   10,510     8,356    11,288 
   Industrial chemicals and synthetics(3)..    3,661     2,833     4,577 
   Drugs(3) ...............................    3,528     2,529     3,166 
   Residual of chemicals(3)................    3,322     2,994     3,545 
  Petroleum ...............................    5,895     5,763     4,693 
  Rubber ..................................    2,093     1,922     2,028

Durable goods .............................   32,145    29,062    26,041 
  Stone, clay, and glass ..................      886     1,690       712
  Primary metals ..........................    2,362     1,903     2,061
   Iron and steel(3) ......................    1,003       815       673
   Nonferrous metals(3)....................    1,359     1,088     1,388
  Fabricated metals .......................    3,525     2,823     3,030
  Machinery ...............................    5,093     4,549     4,037
  Electrical machinery ....................    9,539    10,184     6,821
  Transportation Equipment ................    6,332     3,661     4,770
   Motor vehicles and equipment(3) ........    3,196     1,078     1,991
   Aircraft, guided missiles, and parts(3).    2,591     2,198     2,145
  Instruments .............................    1,755     1,980     2,488
  Other durable goods .....................    2,652     2,274     2,121
   Lumber and wood products(3) ............    1,215       752       688
   Furniture and fixtures(3) ..............      930     1,069       740
   Miscellaneous manufacturing(3) .........      507       453       693

Mining(4) .................................    2,350     2,367     1,409 
Wholesale trade(4) ........................    6,317     5,771     5,452
Retail trade(4) ...........................       NA    13,265     7,619
* 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-97-1), U.S. Bureau of the Census, June 1997.


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

                                                    After-Tax Profits
                                                 1Q        4Q        1Q 
                Industry Group                 1997      1996(1)   1996(1)
                                                   (million dollars)
All manufacturing corporations ............   57,818    53,078    51,402

Nondurable goods ..........................   30,806    28,026    28,701
  Food and tobacco ........................    5,708     7,287     6,393
  Textiles ................................      424       375       213
  Apparel(2) ..............................      869       669       196
  Paper ...................................    1,127       917     2,204
  Printing ................................    2,417     3,176     2,927
  Chemicals ...............................   11,040     8,326    10,233
   Industrial chemicals and synthetics(3)..    3,120     1,871     3,561
   Drugs(3) ...............................    4,994     4,171     3,485
   Residual of chemicals(3)................    2,926     2,284     3,187
  Petroleum ...............................    7,986     6,952     5,213
  Rubber ..................................    1,235       325     1,322
                                            
Durable goods .............................   27,012    25,052    22,701
  Stone, clay, and glass ..................     (758)      632       401
  Primary metals ..........................    1,683       822     1,333
   Iron and steel(3) ......................      565       113       215
   Nonferrous metals(3) ...................    1,118       710     1,118
  Fabricated metals .......................    2,388     1,531     2,136
  Machinery ...............................    5,713     6,525     3,859
  Electrical machinery ....................    7,938     7,610     6,156
  Transportation equipment ................    6,924     4,841     5,636
   Motor vehicles and equipment(3) ........    4,839     3,020     3,356
   Aircraft, guided missiles, and parts(3).    1,799     1,714     1,522
  Instruments .............................    1,443     1,576     1,926
  Other durable goods .....................    1,682     1,515     1,253
   Lumber and wood products(3) ............      918       404       374
   Furniture and fixtures(3) ..............      456       710       421 
   Miscellaneous manufacturing(3) .........      308       401       459
                                          
Mining(4) .................................    2,020     1,567       794  
Wholesale trade(4) ........................    3,870     3,169     3,388
Retail trade(4) ...........................       NA     6,369     2,943
(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-97-1), U.S. Bureau of the Census, June 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:
    1992 ............................  704,535  718,080  729,628  737,233
    1993 ............................  743,892  750,893  753,359  766,685
    1994 ............................  784,949  802,167  825,486  842,100
    1995 ............................  872,140  870,781  884,355  900,640
    1996 ............................  914,879  929,578  949,866  959,797
    1997 ............................  964,314                           
All nondurable manufacturing:
    1992 ............................  367,337  374,361  378,390  380,008
    1993 ............................  381,996  382,537  379,328  381,283
    1994 ............................  387,525  394,529  405,596  410,090
    1995 ............................  426,012  427,124  430,760  436,529
    1996 ............................  442,106  451,792  457,877  462,601
    1997 ............................  461,851                           
All durable manufacturing:
    1992 ............................  337,198  343,719  351,238  357,225
    1993 ............................  361,896  368,356  374,031  385,402
    1994 ............................  397,424  407,638  419,890  432,010
    1995.............................  446,128  443,657  453,595  464,111
    1996 ............................  472,773  477,786  491,989  497,196
    1997 ............................  502,463                           
(1) Revised.

SOURCE: "Quarterly Financial Report for Manufacturing, Mining, and Trade Corporations" (QFR-97-1), U.S. Bureau of the Census, June 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:
    1992 ............................ (42,454)   24,497   26,284   14,934   
    1993 ............................   12,856   19,503   23,896   27,613
    1994 ............................   37,104   41,305   46,147   52,048
    1995 ............................   54,039   52,049   50,166   43,850
    1996 ............................   52,872   54,036   61,752   57,462
    1997 ............................   59,311                           
All nondurable manufacturing:
    1992 ............................  (3,980)   18,268   17,371   15,191
    1993 ............................   12,914   15,325   12,161   15,792
    1994 ............................   19,390   19,791   23,328   26,403
    1995 ............................   26,669   28,000   28,825   21,759
    1996 ............................   29,044   28,009   33,500   28,993
    1997 ............................   31,210                           
All durable manufacturing:
    1992 ............................ (38,474)    6,229    8,913    (257)
    1993 ............................     (58)    4,178   11,735   11,821
    1994 ............................   17,714   21,514   22,819   25,645
    1995 ............................   27,370   24,049   21,341   22,091
    1996 ............................   23,828   26,027   28,252   28,469
    1997 ............................   28,101                           
(1) Revised.

SOURCE: "Quarterly Financial Report for Manufacturing, Mining, and Trade Corporations" (QFR-97-1), U.S. Bureau of the Census, June 1997.


Schedule of Advance Data Release Dates--1997

Quarter      Manufacturing, Mining, and Wholesale Trade   Retail Trade

First 1997                                               July 16, 1997
Second 1997                    September 15, 1997        October 15, 1997
Third 1997                     December 15, 1997


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