[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--FOURTH QUARTER 1997

April 1997-------------------Released 10 a.m. (EDT), Monday, April 6, 1998 (CB98-52)
Contact: Ronald H. Lee (301) 457-3343 or Frank Hartman (301) 457-3379.

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 6.1 cents per dollar of sales for the fourth quarter of 1997, down 0.2 (+/-0.1) cents from the third quarter of 1997. The Commerce Department`s Bureau of the Census also reported that on an unadjusted basis, after-tax profits for the fourth quarter averaged 5.5 cents per dollar of sales, down 0.9 (+/-0.1) cents from the preceding quarter, but showing no statistically significant change from the same quarter in 1996.

For the fourth quarter of 1997, manufacturers` seasonally adjusted after-tax profits were $61.1 billion, down $0.9 (+/-1.4) billion from last quarter. On an unadjusted basis, fourth quarter after-tax profits were $56.3 billion, down $6.4 (+/-1.4) billion from last quarter, but up $2.6 (+/-1.4) billion from the same quarter a year ago.

Unadjusted durable manufacturers` after-tax profits for the fourth quarter of 1997 were $27.8 billion, down $1.4 billion or 4.7 percent (+/-4.5%) when compared to the third quarter of 1997. Most underlying industry categories were down. Aircraft and fabricated metals reported declines of $1.2 (+/-0.1) and $1.1 (+/-0.4) billion, respectively, due primarily to lower operating profits. Also down were stone, clay, and glass, electrical machinery, and nonferrous metals. Machinery and motor vehicles reported increases. Machinery`s $2.0 (+/-0.8) billion increase was due chiefly to improved foreign earnings. Motor vehicles` improvement of $1.7 (+/-0.1) billion was a result of gains from asset sales more than offsetting declines in operating profits and foreign earnings.

When compared to the fourth quarter of 1996, unadjusted durable manufacturers` profits were up $2.7 billion or 10.8 percent (+/-5.2%), with the underlying industries showing mixed results. Motor vehicles, stone, clay, and glass, iron and steel, and lumber reported increases. Motor vehicles` $2.1 (+/-0.1) billion increase was due chiefly to gains from asset sales more than offsetting declines in operating profits and foreign earnings. Aircraft`s $0.7 (+/-0.1) billion decline, the only statistically significant decrease for the durables group, was due principally to lower operating profits.

Unadjusted nondurable manufacturers` after-tax profits for the fourth quarter of 1997 were $28.5 billion, down $5.1 billion or 15.1 percent (+/-1.7%) when compared to the third quarter of 1997. Most underlying industry categories were down. Food and paper`s decreases of $2.7 (+/-0.3) and $1.4 (+/-0.2) billion, respectively, were primarily a result of declines in operating profits and the inclusion this quarter of significant nonrecurring charges against income. The $2.2 (+/-0.2) billion drop in residual of chemicals was due chiefly to lower operating profits and the absence of gains reported on asset sales in the third quarter of 1997. Apparel, rubber, and industrial chemicals also reported declines. Drugs and petroleum reported increases in earnings. Drugs` $2.6 (+/-0.1) billion increase was principally a result of increased dividends from foreign subsidiaries more than offsetting a decline in operating profits.

When compared to the same quarter in 1996, unadjusted nondurable manufacturers` profits showed no statistically significant change from last year, with the underlying industry categories showing mixed results. Food, printing, paper, and apparel reported decreases. Food`s $1.6 (+/-0.3) billion decline was primarily attributable to lower operating margins and the inclusion of significant nonrecurring charges against income this quarter. Drugs, rubber, and petroleum reported increases. Drugs` $2.6 (+/-0.2) billion improvement was principally a result of increased dividends from foreign subsidiaries.

Manufacturers` seasonally adjusted sales for the fourth quarter of 1997 were $997.5 billion, up $7.9 billion or 0.8 percent (+/-1.0%) from last quarter. On an unadjusted basis, sales were $1,014.9 billion, up $28.5 billion or 2.9 percent (+/-1.0%) from last quarter and up $37.2 billion or 3.8 percent (+/-1.0%) from the fourth quarter of 1996.

Seasonally adjusted sales at the nondurable level were $465.7 billion, up $3.6 billion or 0.8 percent (+/-1.3%) from last quarter. Seasonally adjusted durable manufacturers` sales were $531.8 billion, up $4.3 billion or 0.8 percent (+/-1.5% ) from last quarter. Unadjusted sales at the nondurable manufacturing level were $472.5 billion, up $6.0 billion or 1.3 percent (+/-1.3%) from last quarter. On a same quarter a year ago basis, nondurable manufacturers` sales were up $2.4 billion or 0.5 percent (+/-1.3%) from the fourth quarter of 1996. Unadjusted durable manufacturers` sales were $542.4 billion, up $22.5 billion or 4.3 percent (+/-1.5%) when compared to the third quarter of 1997. On a same quarter a year ago basis, durable manufacturers` sales were up $34.8 billion or 6.8 percent (+/-1.6%).

Also included in this release are fourth quarter 1997 data for large mining and wholesale and retail 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--Fourth Quarter 1997 (QFR-97-4). 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, under "Publication", 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.

Schedule of Advance Data Release Dates--1998
Economic Indicator Release Schedule

Quarter      Manufacturing, Mining, and Wholesale Trade   Retail Trade

First 1998                     June 15, 1998             July 13, 1998
Second 1998                    September 14, 1998        October 14, 1998
Third 1998                     December 14, 1998        

Questions regarding this report (or program) should be directed to Ronald H. Lee (301) 457-3343 or Frank Hartman (301) 457-3379.



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


                                                   Seasonally Adjusted
                                                 4Q        3Q        4Q    
                                               1997      1997(1)   1996(1) 
Rate of return (after taxes):
 Cents per dollar of sales ................     6.1       6.3       6.1
 Percent on equity (annual rate) ..........      NA        NA        NA    

                                                   (million dollars) 
Net Sales.................................. 997,498   989,601   960,932
 Income after income taxes ................  61,060    61,923    58,425
 Dividends paid (cash) ....................      NA        NA        NA
(1) Revised.

SOURCE: "Quarterly Financial Report for Manufacturing, Mining, and Trade Corporations" (QFR-97-4), U.S. Bureau of the Census, April 1998.


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


                                                       Unadjusted
                                                 4Q        3Q        4Q    
                                               1997      1997(1)   1996(1) 
Rate of return (after taxes):
 Cents per dollar of sales ................     5.5       6.4       5.5
 Percent on equity (annual rate) ..........    15.2      17.0      15.3    

                                                   (million dollars) 
Net Sales.................................1,014,907   986,383   977,737
 Income after income taxes ................  56,273    62,701    53,654
 Dividends paid (cash) ....................  34,473    25,613    25,015

(1) Revised.

SOURCE: "Quarterly Financial Report for Manufacturing, Mining, and Trade Corporations" (QFR-97-4), U.S. Bureau of the Census, April 1998.


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


                                                         Sales
                                                 4Q        3Q        4Q 
                Industry Group                 1997      1997(1)   1996(1)
                                                   (million dollars)
All manufacturing corporations ............1,014,907   986,383   977,737

Nondurable goods ..........................  472,539   466,507   470,132
  Food and tobacco.........................  123,399   122,647   124,318
  Textiles ................................   17,058    16,955    17,474 
  Apparel(2) ..............................   20,105    18,938    18,943
  Paper ...................................   41,637    42,128    39,461
  Printing ................................   53,487    49,739    48,102
  Chemicals ...............................  107,814   106,099   103,358
   Industrial chemicals and synthetics(3)..   38,690    40,955    40,131
   Drugs(3) ...............................   33,545    29,980    28,731
   Residual of chemicals(3)................   35,578    35,164    34,496
  Petroleum ...............................   77,625    78,091    88,392
  Rubber ..................................   31,412    31,909    30,084

Durable goods .............................  542,368   519,876   507,605
  Stone, clay, and glass ..................   18,879    19,320    18,457
  Primary metals ..........................   38,753    38,918    36,215
   Iron and steel(3) ......................   19,567    19,379    17,734
   Nonferrous metals(3)....................   19,186    19,540    18,482
  Fabricated metals .......................   45,197    44,803    42,251
  Machinery ...............................  116,479   109,622   106,598
  Electrical machinery ....................  114,838   109,443   107,437
  Transportation Equipment ................  135,734   124,992   125,771
   Motor vehicles and equipment(3) ........   91,371    82,176    84,184
   Aircraft, guided missiles, and parts(3).   36,613    35,454    32,758
  Instruments .............................   29,514    29,311    28,487
  Other durable goods .....................   42,974    43,466    42,388
   Lumber and wood products(3) ............   16,501    19,236    18,195
   Furniture and fixtures(3) ..............   16,985    14,923    14,736
   Miscellaneous manufacturing(3) .........    9,487     9,307     9,457

Mining(4) .................................   16,822    15,823    15,774
Wholesale trade(4) ........................  290,660   277,944   273,478
Retail trade(4) ...........................  289,236   252,750   274,433

(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-97-4), U.S. Bureau of the Census, April 1998.


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


                                                    Operating Profits*
                                                 4Q        3Q*       4Q*
                Industry Group                 1997      1997(1)   1996(1)
                                                   (million dollars)
All manufacturing corporations ............   65,833    80,473    66,475

Nondurable goods ..........................   36,157    44,098    37,291
  Food and tobacco.........................   10,693    11,471    11,227
  Textiles ................................    1,423     1,181     1,111
  Apparel(2) ..............................    1,000     1,638       939
  Paper ...................................    2,678     3,403     2,673
  Printing ................................    5,465     4,864     5,119
  Chemicals ...............................    7,908    12,174     8,652 
   Industrial chemicals and synthetics(3)..    3,185     3,879     2,821 
   Drugs(3) ...............................    2,059     4,316     2,485 
   Residual of chemicals(3)................    2,664     3,979     3,347 
  Petroleum ...............................    5,080     6,841     5,648 
  Rubber ..................................    1,911     2,525     1,922

Durable goods .............................   29,676    36,375    29,183 
  Stone, clay, and glass ..................    1,802     2,647     1,704
  Primary metals ..........................    2,367     2,581     1,918
   Iron and steel(3) ......................    1,125     1,090       834
   Nonferrous metals(3)....................    1,241     1,490     1,084
  Fabricated metals .......................    3,128     4,191     2,854
  Machinery ...............................    5,791     5,815     4,588
  Electrical machinery ....................   10,895    10,135    10,238
  Transportation Equipment ................      365     5,457     3,608
   Motor vehicles and equipment(3) ........   (1,080)    1,822     1,025
   Aircraft, guided missiles, and parts(3).      987     3,021     2,198
  Instruments .............................    2,702     2,156     2,013
  Other durable goods .....................    2,626     3,393     2,260
   Lumber and wood products(3) ............      929     1,462       719
   Furniture and fixtures(3) ..............    1,166     1,233     1,089
   Miscellaneous manufacturing(3) .........      530       699       452

Mining(4) .................................    2,373     2,355     2,476 
Wholesale trade(4) ........................    6,299     7,825     5,906
Retail trade(4) ...........................   16,716    10,296    14,057

* 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-97-4), U.S. Bureau of the Census, April 1998.


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


                                                    After-Tax Profits
                                                 4Q        3Q        4Q 
                Industry Group                 1997      1997(1)   1996(1)
                                                   (million dollars)
All manufacturing corporations ............   56,273    62,701    53,654

Nondurable goods ..........................   28,463    33,524    28,549
  Food and tobacco ........................    5,523     8,228     7,123
  Textiles ................................      346       516       375 
  Apparel(2) ..............................      272     1,173       662
  Paper ...................................      233     1,676       893
  Printing ................................    2,593     2,670     3,432
  Chemicals ...............................   11,231    11,316     8,715
   Industrial chemicals and synthetics(3)..    1,830     2,315     1,852
   Drugs(3) ...............................    7,039     4,476     4,390
   Residual of chemicals(3)................    2,362     4,524     2,473
  Petroleum ...............................    7,354     6,475     7,026
  Rubber ..................................      911     1,471       325
                                            
Durable goods .............................   27,811    29,177    25,105
  Stone, clay, and glass ..................    1,162     1,751       605
  Primary metals ..........................    1,076     1,635       834
   Iron and steel(3) ......................      606       639       126
   Nonferrous metals(3) ...................      470       996       707
  Fabricated metals .......................    1,861     2,929     1,538
  Machinery ...............................    6,604     4,563     6,807
  Electrical machinery ....................    7,405     7,962     7,602
  Transportation equipment ................    6,183     5,826     4,631
   Motor vehicles and equipment(3) ........    4,921     3,271     2,811
   Aircraft, guided missiles, and parts(3).    1,007     2,234     1,714
  Instruments .............................    1,828     2,380     1,600
  Other durable goods .....................    1,691     2,131     1,489
   Lumber and wood products(3) ............      679       938       370
   Furniture and fixtures(3) ..............      731       793       719 
   Miscellaneous manufacturing(3) .........      281       400       400
                                          
Mining(4) .................................    1,295     1,698     1,525  
Wholesale trade(4) ........................    3,762     5,099     3,242
Retail trade(4) ...........................    8,314     4,932     6,480
 
(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-97-4), U.S. Bureau of the Census, April 1998.


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 ............................  704,570  718,096  729,639  737,162
    1993 ............................  743,840  751,098  753,320  766,490
    1994 ............................  784,813  802,765  825,256  841,683
    1995 ............................  871,928  871,934  883,894  899,874
    1996 ............................  914,741  931,220  949,605  960,932
    1997 ............................  966,812  971,250  989,601  997,498
All nondurable manufacturing:
    1992 ............................  367,324  374,367  378,420  379,999
    1993 ............................  381,923  382,593  379,390  381,232
    1994 ............................  387,394  394,648  405,757  409,928
    1995 ............................  425,720  427,445  431,052  436,142
    1996 ............................  441,706  452,265  458,357  463,205
    1997 ............................  462,179  457,130  462,186  465,745
All durable manufacturing:
    1992 ............................  337,246  343,729  351,219  357,163
    1993 ............................  361,917  368,505  373,930  385,258
    1994 ............................  397,419  408,117  419,499  431,755
    1995.............................  446,208  444,489  452,842  463,732
    1996 ............................  473,035  478,955  491,248  497,727
    1997 ............................  504,633  514,120  527,415  531,753
 
(1) Revised.

SOURCE: "Quarterly Financial Report for Manufacturing, Mining, and Trade Corporations" (QFR-97-4), U.S. Bureau of the Census, April 1998.


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 ............................ (42,529)   24,543   26,267   14,994   
    1993 ............................   12,717   19,640   23,832   27,715
    1994 ............................   36,835   41,608   45,968   52,263
    1995 ............................   53,620   52,472   49,913   44,162
    1996 ............................   52,368   54,427   61,840   58,425
    1997 ............................   62,148   61,782   61,923   61,060
All nondurable manufacturing:
    1992 ............................  (4,015)   18,344   17,370   15,140
    1993 ............................   12,841   15,510   12,102   15,745
    1994 ............................   19,215   20,191   23,098   26,442
    1995 ............................   26,367   28,603   28,426   21,891
    1996 ............................   28,660   28,705   33,298   29,742
    1997 ............................   34,214   30,986   32,002   29,686
All durable manufacturing:
    1992 ............................ (38,514)    6,199    8,897    (146)
    1993 ............................    (124)    4,130   11,730   11,970
    1994 ............................   17,620   21,417   22,870   25,821
    1995 ............................   27,253   23,869   21,487   22,271
    1996 ............................   23,708   25,722   28,542   28,683
    1997 ............................   27,934   30,796   29,921   31,374

(1) Revised.

SOURCE: "Quarterly Financial Report for Manufacturing, Mining, and Trade Corporations" (QFR-97-4), U.S. Bureau of the Census, April 1998.


TABLE 4. INCOME STATEMENT FOR RETAIL TRADE CORPORATIONS WITH ASSETS OF $50 MILLION AND OVER

                                                    4Q       3Q       4Q                              
                     Item                         1997     1997(1)  1996(1)
                                                      (million dollars)
Net sales, receipts, and operating revenues .. 289,236   252,750   274,433
Less: Depreciation, depletion and
        amortization .........................   5,601     5,270     5,067
Less: All other operating costs and expenses . 266,919   237,185   255,310

  Income (or loss) from operations ...........  16,716    10,296    14,057

Net nonoperating income (expense) ............ (3,425)   (2,358)   (3,397)

  Income (or loss) before income taxes .......  13,291     7,938    10,659

Less: Provision for current and deferred
        domestic income taxes ................   4,977     3,006     4,179

  Income (or loss) after income taxes ........   8,314     4,932     6,480

Cash dividends charged to retained earnings      
  in current quarter .........................   1,319     1,199     1,358

  Net income retained in business ............   6,995     3,733     5,122

Retained earnings at beginning of quarter .... 111,929   111,153   103,752
Other direct credits (or charges) to retained
  earnings (net) .............................    (99)     (551)    (1,390)

  Retained earnings at end of quarter ........ 118,824   114,335   107,484

(1) Revised.

SOURCE: "Quarterly Financial Report for Manufacturing, Mining, and Trade Corporations" (QFR-97-4), U.S. Bureau of the Census, April 1998.


TABLE 5. INCOME STATEMENT IN RATIO FORMAT FOR RETAIL TRADE CORPORATIONS WITH ASSETS OF $50 MILLION AND OVER

                                                    4Q       3Q       4Q 
                     Item                         1997     1997(1)  1996(1)
                                                         (cents)
Net sales, receipts, and operating revenues ..   100.0     100.0     100.0
Less: Depreciation, depletion, and 
  amortization ...............................     1.9       2.1       1.8
Less: All other operating costs and expenses .    92.3      93.8      93.0

  Income (or loss) from operations ...........     5.8       4.1       5.1

Net nonoperating income (expense) ............   (1.2)     (0.9)     (1.2)

  Income (or loss) before income taxes .......     4.6       3.1       3.9 

Less: Provision for current and deferred
  domestic income taxes ......................     1.7       1.2       1.5
                                                                   
  Income (or loss) after income taxes ........     2.9       2.0       2.4 

(1) Revised.

SOURCE: "Quarterly Financial Report for Manufacturing, Mining, and Trade Corporations" (QFR-97-4), U.S. Bureau of the Census, April 1998.


TABLE 6. OPERATING RATIOS FOR RETAIL TRADE CORPORATIONS WITH ASSETS OF $50 MILLION AND OVER

                                                    4Q       3Q       4Q 
                        Item                      1997     1997(1)  1996(1)
                                                        (percent)
Annual rate of profit on stockholders` equity
 at end of period:
    Before income taxes ......................   29.11     17.86     25.69
    After income taxes .......................   18.21     11.10     15.62

Annual rate of profit on total assets:
    Before income taxes ......................   10.21      6.15      8.74
    After income taxes .......................    6.39      3.82      5.31

(1) Revised.

SOURCE: "Quarterly Financial Report for Manufacturing, Mining, and Trade Corporations" (QFR-97-4), U.S. Bureau of the Census, April 1998.


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