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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 1997

December 1997-------------------Released 10 a.m. (EST), Monday, December 15, 1997 (CB97-202)
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 6.3 cents per dollar of sales for the third quarter of 1997, down 0.1 (+/-0.1) cents from the second quarter of 1997. The Commerce Department`s Bureau of the Census also reported that on an unadjusted basis, after-tax profits for the third quarter averaged 6.3 cents per dollar of sales, down 0.5 (+/-0.1) cents from the preceding quarter and down 0.3 (+/-0.1) cents from the same quarter in 1996.

For the third quarter of 1997, manufacturers` seasonally adjusted after-tax profits were $61.9 billion, up $0.2 (+/-1.3) billion from last quarter. On an unadjusted basis, third quarter after-tax profits were $62.7 billion, down $4.1 (+/-1.3) billion from last quarter, but showing no significant change from the same quarter a year ago.

Unadjusted durable manufacturers` after-tax profits for the third quarter of 1997 were $29.2 billion, down $6.9 billion or 19.2 percent (+/-2.8%) when compared to the second quarter of 1997. Most underlying industry categories were down. Motor vehicles and machinery reported sharp decreases. The $2.8 (+/-0.1) billion downturn in motor vehicles was due chiefly to decreases in operating profits and foreign earnings. Machinery`s $2.7 (0.4) billion decline was a result of lower operating profits and the inclusion of significant nonrecurring charges in the third quarter. Electrical machinery also was down significantly from last quarter. Stone, clay, and glass` $0.4 (+/-0.2) billion increase, due primarily to improved operating profits, was the only statistically significant increase for the durable`s group.

When compared to the third quarter of 1996, unadjusted durable manufacturers` profits were up $1.4 billion or 5.0 percent (+/-3.7%), with the underlying industries showing mixed results. Electrical machinery, aircraft, stone, clay, and glass, and nonferrous metals reported increases. Electrical machinery`s $1.9 (+/-0.3) billion increase was due primarily to improved operating profits. Machinery`s $1.3 (+/-0.4) billion drop resulted from the inclusion of significant nonrecurring charges against income and reduced foreign earnings that more than offset an improvement in operating profits.

Unadjusted nondurable manufacturers` after-tax profits for the third quarter of 1997 were $33.5 billion, up $2.8 billion or 9.1 percent (+/-1.8%) when compared to the second quarter of 1997, with the underlying industry categories showing mixed results. Drugs, food, residual chemicals, paper, and apparel were up. Drugs` $3.3 (+/-0.1) billion increase was due principally to improved operating profits and the absence of significant nonrecurring charges reported in the second quarter of 1997. Industrial chemicals, petroleum, rubber, and textiles reported declines. Industrial chemicals` downturn of $1.7 (+/-0.1) billion was due chiefly to lower operating profits and the inclusion of significant nonrecurring charges in the third quarter.

When compared to the same quarter in 1996, unadjusted nondurable manufacturers` profits were down $1.4 billion or 3.9 percent (+/-1.6%). The underlying industry categories showed mixed results. Residual chemicals, industrial chemicals, printing, and textiles were down. Residual chemicals` $1.5 (+/-0.2) billion decrease was due primarily to lower operating profits and the absence of gains reported on asset sales last year. Industrial chemicals` $1.1 (+/-0.1) billion decline was due chiefly to the inclusion of significant nonrecurring charges in the third quarter. Food and apparel were up. Food`s $1.4 (+/-0.3) increase was due principally to improved operating profits and foreign earnings.

Manufacturers` seasonally adjusted sales for the third quarter of 1997 were $991.1 billion, up $21.0 billion or 2.2 percent (+/-1.0%) from last quarter. On an unadjusted basis, sales were $987.0 billion, showing no significant change from last quarter, but up $40.4 billion or 4.3 percent (+/-1.0%) from the third quarter of 1996.

Seasonally adjusted sales of nondurables were $463.4 billion, up $6.3 billion or 1.4 percent (+/-1.3%) from last quarter. Seasonally adjusted durable manufacturers` sales were $527.7 billion, up $14.7 billion or 2.9 percent (+/-1.6%) from last quarter. Unadjusted sales at the nondurable manufacturing level were $467.8 billion, up $7.8 billion or 1.7 percent (+/-1.3%) from last quarter and up $5.1 billion or 1.1 percent (+/-1.3%) from the third quarter of 1996. Unadjusted durable manufacturers` sales were $519.2 billion, down $8.4 billion or 1.6 percent (+/-1.6%) when compared to the second quarter of 1997. On a same quarter a year ago basis, durable manufacturers` sales were up $35.2 billion or 7.3 percent (+/-1.8%).

Also included in this release are third quarter 1997 data for large mining and wholesale trade corporations.

These advance data, based on quarterly financial reports from about 8,200 corporations, were released today from the Quarterly Financial Report for Manufacturing, Mining, and Trade Corporations--Third Quarter 1997 (QFR-97-3). 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.

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 press release is available on the day of issue on the Internet, under "PRESS RELEASES", 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
                                                 3Q        2Q        3Q    
                                               1997      1997(1)   1996(1) 
Rate of return (after taxes):
 Cents per dollar of sales ................     6.3       6.4       6.5
 Percent on equity (annual rate) ..........      NA        NA        NA    

                                                   (million dollars) 
Net Sales.................................. 991,078   970,092   950,373
 Income after income taxes ................  61,943    61,770    61,931
 Dividends paid (cash) ....................      NA        NA        NA
(1) Revised.

SOURCE: "Quarterly Financial Report for Manufacturing, Mining, and Trade Corporations" (QFR-97-3), U.S. Bureau of the Census, December 1997.


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

           Item                                        Unadjusted
                                                 3Q        2Q        3Q    
                                               1997      1997(1)   1996(1) 
Rate of return (after taxes):
 Cents per dollar of sales ................     6.3       6.8       6.6
 Percent on equity (annual rate) ..........    17.0      18.4      18.4    

                                                   (million dollars) 
Net Sales.................................. 986,987   987,625   946,601
 Income after income taxes ................  62,654    66,802    62,613
 Dividends paid (cash) ....................  25,584    25,784    23,387
(1) Revised.

SOURCE: "Quarterly Financial Report for Manufacturing, Mining, and Trade Corporations" (QFR-97-3), U.S. Bureau of the Census, December 1997.


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

                                                         Sales
                                                 3Q        2Q        3Q 
                Industry Group                 1997      1997(1)   1996(1)
                                                   (million dollars)
All manufacturing corporations ............  986,987   987,625   946,601

Nondurable goods ..........................  467,784   460,002   462,644
  Food and tobacco.........................  122,255   119,929   124,198 
  Textiles ................................   17,021    17,535    17,852 
  Apparel(2) ..............................   18,606    16,647    18,443
  Paper ...................................   41,780    41,402    40,910
  Printing ................................   49,602    46,328    45,210
  Chemicals ...............................  106,161   108,627   104,416
   Industrial chemicals and synthetics(3)..   40,955    42,677    41,227
   Drugs(3) ...............................   29,980    29,651    27,366
   Residual of chemicals(3)................   35,226    36,299    35,823
  Petroleum ...............................   80,402    77,604    81,536
  Rubber ..................................   31,955    31,931    30,079

Durable goods .............................  519,203   527,623   483,957
  Stone, clay, and glass ..................   19,320    18,592    19,462
  Primary metals ..........................   38,792    39,718    36,580
   Iron and steel(3) ......................   19,419    19,973    17,916
   Nonferrous metals(3)....................   19,373    19,745    18,663
  Fabricated metals .......................   45,005    45,715    43,749
  Machinery ...............................  109,111   111,045    99,177
  Electrical machinery ....................  109,527   106,963    95,546
  Transportation Equipment ................  124,909   132,372   119,492
   Motor vehicles and equipment(3) ........   82,083    88,950    78,210
   Aircraft, guided missiles, and parts(3).   35,455    35,523    32,447
  Instruments .............................   29,230    29,634    28,910
  Other durable goods .....................   43,309    43,584    41,042
   Lumber and wood products(3) ............   19,276    19,372    19,264
   Furniture and fixtures(3) ..............   14,726    15,510    13,654
   Miscellaneous manufacturing(3) .........    9,307     8,702     8,125

Mining(4) .................................   15,812    15,486    14,296
Wholesale trade(4) ........................  277,257   275,133   259,401
Retail trade(4) ...........................       NA   248,355   237,535
(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-97-3), U.S. Bureau of the Census, December 1997.


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                 1997      1997(1)   1996(1)
                                                   (million dollars)
All manufacturing corporations ............   80,377    82,096    72,648

Nondurable goods ..........................   44,096    41,880    41,272
  Food and tobacco.........................   11,452    11,226    10,803
  Textiles ................................    1,186     1,222     1,236
  Apparel(2) ..............................    1,606       977     1,302
  Paper ...................................    3,405     3,037     3,648
  Printing ................................    4,851     5,057     4,594
  Chemicals ...............................   12,183    10,993    11,572 
   Industrial chemicals and synthetics(3)..    3,879     4,849     4,010 
   Drugs(3) ...............................    4,316     2,075     3,311 
   Residual of chemicals(3)................    3,988     4,070     4,250 
  Petroleum ...............................    6,860     6,512     5,879 
  Rubber ..................................    2,552     2,856     2,238

Durable goods .............................   36,281    40,216    31,375 
  Stone, clay, and glass ..................    2,647     2,131     2,442
  Primary metals ..........................    2,574     2,870     2,119
   Iron and steel(3) ......................    1,082     1,321       962     
   Nonferrous metals(3)....................    1,491     1,549     1,157
  Fabricated metals .......................    4,230     4,169     3,967
  Machinery ...............................    5,762     6,988     4,481
  Electrical machinery ....................   10,128    10,637     7,371
  Transportation Equipment ................    5,478     7,318     5,211
   Motor vehicles and equipment(3) ........    1,837     3,584     1,794
   Aircraft, guided missiles, and parts(3).    3,021     2,963     2,752
  Instruments .............................    2,095     2,502     2,600
  Other durable goods .....................    3,368     3,601     3,184
   Lumber and wood products(3) ............    1,466     1,600     1,575
   Furniture and fixtures(3) ..............    1,203     1,348     1,065
   Miscellaneous manufacturing(3) .........      699       653       544

Mining(4) .................................    2,346     2,320     2,063 
Wholesale trade(4) ........................    7,786     7,004     6,254
Retail trade(4) ...........................       NA     9,956     9,430
* 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-97-3), U.S. Bureau of the Census, December 1997.


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                 1997      1997(1)   1996(1)
                                                   (million dollars)
All manufacturing corporations ............   62,654    66,802    62,613

Nondurable goods ..........................   33,475    30,679    34,834
  Food and tobacco ........................    8,200     7,229     6,839
  Textiles ................................      518       668       657
  Apparel(2) ..............................    1,135       944       816
  Paper ...................................    1,680     1,058     1,752
  Printing ................................    2,663     2,867     2,945
  Chemicals ...............................   11,322     8,787    13,889    
   Industrial chemicals and synthetics(3)..    2,315     3,990     3,398 
   Drugs(3) ...............................    4,476     1,138     4,486
   Residual of chemicals(3)................    4,530     3,659     6,006
  Petroleum ...............................    6,489     7,174     6,524
  Rubber ..................................    1,468     1,953     1,412
                                            
Durable goods .............................   29,179    36,123    27,779
  Stone, clay, and glass ..................    1,751     1,320     1,472
  Primary metals ..........................    1,624     2,128     1,440
   Iron and steel(3) ......................      634       914       615
   Nonferrous metals(3) ...................      990     1,214       825     
  Fabricated metals .......................    2,991     2,946     3,151
  Machinery ...............................    4,535     7,237     5,849
  Electrical machinery ....................    7,957     9,123     6,082
  Transportation equipment ................    5,850     8,788     5,506
   Motor vehicles and equipment(3) ........    3,283     6,100     3,322
   Aircraft, guided missiles, and parts(3).    2,234     2,178     1,806
  Instruments .............................    2,349     2,128     2,307
  Other durable goods .....................    2,122     2,454     1,971
   Lumber and wood products(3) ............      943     1,218       969
   Furniture and fixtures(3) ..............      780       791       623 
   Miscellaneous manufacturing(3) .........      400       444       378
                                          
Mining(4) .................................    1,718     1,436     2,074  
Wholesale trade(4) ........................    5,088     4,612     3,464
Retail trade(4) ...........................       NA     3,990     4,858
(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-97-3), U.S. Bureau of the Census, December 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 ............................  704,550  718,085  729,656  737,181
    1993 ............................  743,858  751,006  753,389  766,518
    1994 ............................  784,843  802,547  825,532  841,608
    1995 ............................  871,954  871,634  884,403  899,661
    1996 ............................  914,683  930,944  950,373  960,110
    1997 ............................  965,024  970,092  991,078                  
All nondurable manufacturing:
    1992 ............................  367,325  374,374  378,425  379,980
    1993 ............................  381,932  382,609  379,390  381,194
    1994 ............................  387,416  394,682  405,764  409,813
    1995 ............................  425,812  427,507  431,037  435,941
    1996 ............................  441,877  452,370  458,319  463,374
    1997 ............................  461,851  457,074  463,358                
All durable manufacturing:
    1992 ............................  337,225  343,711  351,231  357,201
    1993 ............................  361,926  368,397  373,999  385,324
    1994 ............................  397,427  407,865  419,768  431,795
    1995.............................  446,142  444,127  453,366  463,720
    1996 ............................  472,806  478,574  492,054  496,736
    1997 ............................  503,173  513,018  527,720                  
(1) Revised.

SOURCE: "Quarterly Financial Report for Manufacturing, Mining, and Trade Corporations" (QFR-97-3), U.S. Bureau of the Census, December 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 ............................ (42,466)   24,579   26,216   14,934   
    1993 ............................   12,792   19,682   23,800   27,609
    1994 ............................   36,941   41,633   45,992   52,068
    1995 ............................   53,783   52,474   49,985   43,892
    1996 ............................   52,581   54,413   61,931   58,072
    1997 ............................   62,333   61,770   61,943               
All nondurable manufacturing:
    1992 ............................  (3,999)   18,365   17,303   15,169
    1993 ............................   12,855   15,535   12,065   15,722
    1994 ............................   19,243   20,207   23,155   26,295
    1995 ............................   26,427   28,614   28,597   21,600
    1996 ............................   28,747   28,727   33,563   29,306
    1997 ............................   34,297   31,048   32,256               
All durable manufacturing:
    1992 ............................ (38,467)    6,214    8,913    (235)
    1993 ............................     (63)    4,147   11,735   11,887
    1994 ............................   17,698   21,426   22,837   25,773
    1995 ............................   27,356   23,860   21,388   22,292
    1996 ............................   23,834   25,686   28,368   28,766
    1997 ............................   28,036   30,722   29,687               
(1) Revised.

SOURCE: "Quarterly Financial Report for Manufacturing, Mining, and Trade Corporations" (QFR-97-3), U.S. Bureau of the Census, December 1997.


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