[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--SECOND QUARTER 1997

September 1997-------------------Released 10 a.m. (EDT), Monday, September 15, 1997 (CB97-149)
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 6.4 cents per dollar of sales for the second quarter of 1997, up 0.1 (+/-0.1) cents from the first quarter of 1997. The Commerce Department`s Bureau of the Census also reported that on an unadjusted basis, after-tax profits for the second quarter averaged 6.8 cents per dollar of sales, up 0.4 (+/-0.1) cents from the preceding quarter and up 0.5 (+/-0.1) cents from the same quarter in 1996.

For the second quarter of 1997, manufacturers` seasonally adjusted after-tax profits were $61.8 billion, up $0.6 (+/-1.2) billion from last quarter. On an unadjusted basis, second quarter after-tax profits were $66.7 billion, up $6.8 (+/-1.2) billion from last quarter and up $7.3 (+/-1.1) billion from the same quarter a year ago.

Unadjusted durable manufacturers` after-tax profits for the second quarter of 1997 were $35.9 billion, up $9.0 billion or 33.5 percent (+/-4.4%) when compared to the first quarter of 1997. All underlying industry categories reported statistically significant increases, except nonferrous metals and miscellaneous manufacturing. Stone, clay, and glass, machinery, and motor vehicles led the group. Stone, clay, and glass`s $2.1 (+/-0.1) billion increase was due primarily to higher operating profits and the absence of significant nonrecurring charges made against last quarter`s income. Machinery`s $1.8 (+/-0.4) billion improvement was due principally to higher operating profits. Motor vehicles` $1.3 (+/-0.1) billion increase was a result of improved operating profits and foreign earnings.

When compared to the second quarter of 1996, unadjusted durable manufacturers` profits were up $4.8 billion or 15.5 percent (+/-3.4%). Most underlying industries reported increases in after-tax profits. Electrical machinery led the group with an increase of $2.2 (+/-0.4) billion due primarily to improved operating profits.

Unadjusted nondurable manufacturers` after-tax profits for the second quarter of 1997 were $30.8 billion, down $2.2 billion or 6.5 percent (+/-1.5%) when compared to the first quarter of 1997. The underlying industry categories showed mixed results. Drugs and residual chemicals reported marked declines. Drugs` $4.1 (+/-0.1) billion decline was due principally to lower operating profits and the inclusion of significant nonrecurring charges in the second quarter. The $1.1 (+/-0.1) billion drop in the residual chemicals was due chiefly to the inclusion of significant gains from asset sales in the first quarter. Petroleum was also down. Food reported an increase of $1.8 (+/-0.2) billion due to improved operating profits and gains from asset sales. Rubber, printing, industrial chemicals, and textiles also reported increases.

When compared to the same quarter in 1996, unadjusted nondurable manufacturers` profits were up $2.5 billion or 8.9 percent (+/-1.8%). The underlying industry categories showed mixed results. Industrial chemicals, food, printing, and apparel were up. Industrial chemicals` $4.2 (+/-0.1) billion increase was due primarily to the absence of significant nonrecurring charges reported in the second quarter of 1996. The increases in food, printing, and apparel were due mostly to improved operating profits. Drugs, petroleum, paper, and residual chemicals were down. Drugs` decrease of $3.2 (+/-0.1) billion was due chiefly to a decrease in operating profits.

Manufacturers` seasonally adjusted sales for the second quarter of 1997 were $967.0 billion, showing no statistically significant change from last quarter. On an unadjusted basis, sales were $986.0 billion, up $52.7 billion or 5.6 percent (+/-1.0%) from last quarter and up $37.5 billion or 4.0 percent (+/-1.0%) from the second quarter of 1996.

Seasonally adjusted sales of nondurables were $456.3 billion, showing no statistically significant change from last quarter. Seasonally adjusted durable manufacturers` sales were $510.6 billion, also showing no statistically significant change from last quarter. Unadjusted sales at the nondurable manufacturing level were $459.6 billion, up $12.8 billion or 2.9 percent (+/-1.4%) from last quarter, but showing no statistically significant change from the second quarter of 1996. Unadjusted durable manufacturers` sales were $526.3 billion, up $40.0 billion or 8.2 percent (+/-1.8%) when compared to the first quarter of 1997. On a same quarter a year ago basis, durable manufacturers` sales were up $33.8 billion or 6.9 percent (+/-1.6%).

Also included in this release are second 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--Second Quarter 1997 (QFR-97-2). 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.

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 on the Internet, under "Products", at <http://www.census.gov/csd/www/qfr.html>.

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
                                                 2Q        1Q        2Q
                                               1997      1997(1)   1996(1)
Rate of return (after taxes):
 Cents per dollar of sales ................     6.4       6.3       5.8
 Percent on equity (annual rate) ..........      NA        NA        NA

                                                   (million dollars)
Net Sales.................................. 966,953   963,999   914,588
 Income after income taxes ................  61,786    61,144    52,622
 Dividends paid (cash) ....................      NA        NA        NA
(1) Revised.

SOURCE: "Quarterly Financial Report for Manufacturing, Mining, and Trade Corporations" (QFR-97-2), U.S. Bureau of the Census, September 1997.


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

           Item                                        Unadjusted
                                                 2Q        1Q        2Q
                                               1997      1997(1)   1996(1)
Rate of return (after taxes):
 Cents per dollar of sales ................     6.8       6.4       6.3
 Percent on equity (annual rate) ..........    18.3      16.8      17.9

                                                   (million dollars)
Net Sales.................................. 985,946   933,233   948,430
 Income after income taxes ................  66,716    59,873    59,386
 Dividends paid (cash) ....................  27,358    21,106    27,067
(1) Revised.

SOURCE: "Quarterly Financial Report for Manufacturing, Mining, and Trade Corporations" (QFR-97-2), U.S. Bureau of the Census, September 1997.


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

                                                         Sales
                                                 2Q        1Q        2Q
                Industry Group                 1997      1997(1)   1996(1)
                                                   (million dollars)
All manufacturing corporations ............  985,946   933,233   948,430

Nondurable goods ..........................  459,632   446,881   455,919
  Food and tobacco.........................  120,381   116,109   119,481
  Textiles ................................   17,507    17,095    17,610
  Apparel(2) ..............................   16,641    16,591    16,617
  Paper ...................................   41,429    39,325    40,843
  Printing ................................   46,400    44,325    42,741
  Chemicals ...............................  107,996   103,049   106,255
   Industrial chemicals and synthetics(3)..   42,788    41,339    42,426
   Drugs(3) ...............................   29,024    28,374    27,020
   Residual of chemicals(3)................   36,184    33,336    36,809
  Petroleum ...............................   77,510    80,741    81,403
  Rubber ..................................   31,768    29,647    30,968

Durable goods .............................  526,314   486,352   492,511
  Stone, clay, and glass ..................   18,369    15,141    18,474
  Primary metals ..........................   39,525    36,463    38,149
   Iron and steel(3) ......................   19,806    18,308    18,016
   Nonferrous metals(3)....................   19,718    18,155    20,133
  Fabricated metals .......................   45,312    42,491    42,224
  Machinery ...............................  111,670   103,617   102,650
  Electrical machinery ....................  105,410    98,567    93,765
  Transportation Equipment ................  132,706   122,517   128,263
   Motor vehicles and equipment(3) ........   89,282    83,971    86,124
   Aircraft, guided missiles, and parts(3).   35,525    31,695    33,194
  Instruments .............................   29,577    26,991    29,092
  Other durable goods .....................   43,746    40,565    39,894
   Lumber and wood products(3) ............   19,594    18,053    17,880
   Furniture and fixtures(3) ..............   15,467    14,215    13,952
   Miscellaneous manufacturing(3) .........    8,685     8,297     8,062

Mining(4) .................................   15,356    15,927    13,416
Wholesale trade(4) ........................  275,741   271,389   260,274
Retail trade(4) ...........................       NA   238,001   235,246
(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-97-2), U.S. Bureau of the Census, September 1997.


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                 1997      1997(1)   1996(1)
                                                   (million dollars)
All manufacturing corporations ............   82,358    69,697    76,874

Nondurable goods ..........................   42,508    37,723    40,181
  Food and tobacco.........................   11,768    10,022    10,077
  Textiles ................................    1,211     1,063     1,097
  Apparel(2) ..............................      978     1,222       477
  Paper ...................................    3,045     2,652     3,356
  Printing ................................    5,029     3,719     3,711
  Chemicals ...............................   11,110    11,141    12,500
   Industrial chemicals and synthetics(3)..    4,836     4,016     4,759
   Drugs(3) ...............................    2,217     3,517     3,699
   Residual of chemicals(3)................    4,057     3,608     4,042
  Petroleum ...............................    6,506     5,816     6,305
  Rubber ..................................    2,861     2,089     2,659

Durable goods .............................   39,849    31,974    36,693
  Stone, clay, and glass ..................    2,121       864     2,054
  Primary metals ..........................    2,853     2,367     2,591
   Iron and steel(3) ......................    1,306     1,003     1,076
   Nonferrous metals(3)....................    1,548     1,364     1,515
  Fabricated metals .......................    4,138     3,508     3,574
  Machinery ...............................    7,063     4,919     6,286
  Electrical machinery ....................   10,193     9,528     8,160
  Transportation Equipment ................    7,354     6,332     8,524
   Motor vehicles and equipment(3) ........    3,612     3,196     4,746
   Aircraft, guided missiles, and parts(3).    2,972     2,591     3,030
  Instruments .............................    2,509     1,807     2,487
  Other durable goods .....................    3,619     2,649     3,017
   Lumber and wood products(3) ............    1,623     1,215     1,272
   Furniture and fixtures(3) ..............    1,345       926       998
   Miscellaneous manufacturing(3) .........      651       507       747

Mining(4) .................................    2,268     2,360     1,874
Wholesale trade(4) ........................    6,811     6,218     5,118
Retail trade(4) ...........................       NA     8,542     8,927
* 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-97-2), U.S. Bureau of the Census, September 1997.


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                 1997      1997(1)   1996(1)
                                                   (million dollars)
All manufacturing corporations ............   66,716    59,873    59,386

Nondurable goods ..........................   30,843    32,996    28,332
  Food and tobacco ........................    7,504     5,727     6,168
  Textiles ................................      661       424       596
  Apparel(2) ..............................      918       865       255
  Paper ...................................    1,041     1,127     1,593
  Printing ................................    2,985     2,346     1,946
  Chemicals ...............................    8,603    13,332     7,988
   Industrial chemicals and synthetics(3)..    3,987     3,521      (226)
   Drugs(3) ...............................      980     5,048     4,214
   Residual of chemicals(3)................    3,637     4,763     4,001
  Petroleum ...............................    7,174     7,942     8,137
  Rubber ..................................    1,956     1,232     1,649

Durable goods .............................   35,874    26,877    31,054
  Stone, clay, and glass ..................    1,356      (766)    1,247
  Primary metals ..........................    2,118     1,685     1,780
   Iron and steel(3) ......................      903       565       666
   Nonferrous metals(3) ...................    1,215     1,120     1,114
  Fabricated metals .......................    2,936     2,368     2,416
  Machinery ...............................    7,363     5,580     6,444
  Electrical machinery ....................    8,669     7,916     6,489
  Transportation equipment ................    8,797     6,924     8,225
   Motor vehicles and equipment(3) ........    6,110     4,839     5,624
   Aircraft, guided missiles, and parts(3).    2,177     1,799     2,108
  Instruments .............................    2,157     1,493     2,552
  Other durable goods .....................    2,478     1,679     1,903
   Lumber and wood products(3) ............    1,246       918       933
   Furniture and fixtures(3) ..............      788       453       550
   Miscellaneous manufacturing(3) .........      444       308       419

Mining(4) .................................    1,650     2,027     1,435
Wholesale trade(4) ........................    4,480     3,769     3,277
Retail trade(4) ...........................       NA     3,623     3,916
(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-97-2), U.S. Bureau of the Census, September 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 ............................  704,530  718,070  729,653  737,233
    1993 ............................  743,865  750,882  753,431  766,652
    1994 ............................  784,895  802,145  825,713  841,946
    1995 ............................  871,968  870,854  884,779  900,302
    1996 ............................  914,588  929,743  950,669  961,042
    1997 ............................  963,999  966,953
All nondurable manufacturing:
    1992 ............................  367,327  374,371  378,417  379,988
    1993 ............................  381,938  382,593  379,389  381,217
    1994 ............................  387,412  394,633  405,793  409,886
    1995 ............................  425,755  427,378  431,133  436,126
    1996 ............................  441,728  452,114  458,327  463,608
    1997 ............................  461,330  456,310
All durable manufacturing:
    1992 ............................  337,203  343,699  351,236  357,245
    1993 ............................  361,927  368,289  374,042  385,435
    1994 ............................  397,483  407,512  419,920  432,060
    1995.............................  446,213  443,476  453,646  464,176
    1996 ............................  472,860  477,629  492,342  497,434
    1997 ............................  502,669  510,643
(1) Revised.

SOURCE: "Quarterly Financial Report for Manufacturing, Mining, and Trade Corporations" (QFR-97-2), U.S. Bureau of the Census, September 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 ............................ (42,449)   24,549   26,236   14,923
    1993 ............................   12,823   19,626   23,829   27,605
    1994 ............................   36,980   41,556   46,041   52,046
    1995 ............................   53,828   52,410   50,030   43,842
    1996 ............................   52,622   54,413   62,041   57,885
    1997 ............................   61,144   61,786
All nondurable manufacturing:
    1992 ............................  (3,990)   18,328   17,334   15,175
    1993 ............................   12,860   15,464   12,119   15,760
    1994 ............................   19,231   20,077   23,269   26,352
    1995 ............................   26,393   28,428   28,766   21,678
    1996 ............................   28,683   28,507   33,875   29,303
    1997 ............................   33,010   30,991
All durable manufacturing:
    1992 ............................ (38,459)    6,221    8,902    (252)
    1993 ............................     (37)    4,162   11,710   11,845
    1994 ............................   17,749   21,479   22,772   25,694
    1995 ............................   27,435   23,982   21,264   22,164
    1996 ............................   23,939   25,906   28,166   28,582
    1997 ............................   28,134   30,795
(1) Revised.

SOURCE: "Quarterly Financial Report for Manufacturing, Mining, and Trade Corporations" (QFR-97-2), U.S. Bureau of the Census, September 1997.


Schedule of Upcoming Advance Data Release Dates

Quarter      Manufacturing, Mining, and Wholesale Trade   Retail Trade

Second 1997                                           October 15, 1997
Third 1997                     December 15, 1997


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