Quarterly financial statistics for enterprises
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Canadian corporations earned $64.0 billion in operating profits in the second quarter, down 4.9% from the previous quarter. Overall, 14 out of 22 industries reported lower profits in the second quarter.
Chart description: Quarterly operating profits
In the non-financial sector, operating profits decreased 3.8% to $47.3 billion. Much of this decline came from the manufacturing industry and the transportation and warehousing industry. In manufacturing, two-thirds of the decline came from petroleum and coal manufacturers.
Note to readers
Quarterly financial statistics are compiled using financial information provided by enterprises that derive this data from their financial statements. Starting on January 1, 2011, Canadian publicly accountable enterprises are required to replace Canadian Generally Accepted Accounting Principles (CGAAP) with International Financial Reporting Standards (IFRS) when preparing their financial statements for fiscal years starting on or after January 1, 2011. Canadian private enterprises are required to replace CGAAP by Accounting Standards for Private Enterprises (ASPE) or IFRS. The adoption of new accounting standards by some enterprises since the beginning of 2011 may affect comparability with prior periods.
Quarterly profit numbers referred to in this release are seasonally adjusted and are in current dollars. The quarterly financial data for the first quarter of 2011 have been revised.
Quarterly financial statistics for enterprises are based upon a sample survey and represent the activities of all corporations in Canada, except those that are government controlled or not-for-profit. An enterprise can be a single corporation or a family of corporations under common ownership and/or control, for which consolidated financial statements are produced.
Profits referred to in this analysis are operating profits earned from normal business activities. For non-financial industries, operating profits exclude interest and dividend revenue and capital gains/losses whereas, for financial industries, these are included, along with interest paid on deposits.
Operating profits differ from net profits, which represent the after-tax profits earned by corporations.
Chart description: Quarterly change in operating profits
In the financial sector, operating profits were down 7.9% to $16.7 billion. Most of this decline came from the insurance industry.
On a year-over-year basis, operating profits for all industries were 10.2% higher in the second quarter than they were in the second quarter of 2010. Profits were 8.7% higher in the non-financial sector and 14.8% higher in the financial sector.
Non-financial sector
Manufacturing profits amounted to $11.4 billion in the second quarter, down 8.3% from the previous quarter. The decline was led by petroleum and coal products manufacturers, whose profits fell 24.1% to $2.2 billion. Results from the Monthly Survey of Manufacturing show that manufacturing sales fell for the third consecutive month in June.
Also contributing to the decline, although to a lesser extent, were motor vehicle and parts manufacturers, food and soft drink manufacturers and manufacturers of chemical, plastics and rubber products. Supply disruptions from Japan have had an impact on motor vehicle production in Canada.
Second-quarter profits for transportation and warehousing fell 15.5% to $2.2 billion, the third consecutive quarterly decline.
Profits for retailers decreased 5.7% to $3.4 billion, as profits for clothing, department and other general merchandise stores declined 6.6% to $754 million. Profits for wholesalers fell 4.4% to $5.3 billion.
Profits for the mining industry rose 2.4% to $2.5 billion, while profits in the oil and gas industry increased 2.4% to $4.0 billion.
Financial sector
In the financial sector, most of the second-quarter decline came from the insurance carriers and related activities industry, where profits decreased 42.4% to $2.2 billion. This decline was led by life insurers, where higher actuarial liabilities were recorded.
Part of this decline was offset by the depository credit intermediation industry, where profits increased 4.6% to $8.4 billion.
Available on CANSIM: tables 187-0001 and 187-0002.
Definitions, data sources and methods: survey number 2501.
Aggregate balance sheet and income statement data for Canadian corporations are now available through CANSIM. They are available at the national level for 22 industry groupings.
The second quarter of 2011 issue of the Quarterly Financial Statistics for Enterprises (61-008-X, free) will be available soon.
Financial statistics for enterprises for the third quarter will be released on November 24.
To order data, or for more information, please contact Client Services (toll-free 1-888-811-6235; iofd-clientservicesunit@statcan.gc.ca). To enquire about the concepts, methods or data quality of this release, contact Khalid Berrahou (613-951-1989; khalid.berrahou@statcan.gc.ca) or Philippe Marceau (613-951-4390; philippe.marceau@statcan.gc.ca), Industrial Organization and Finance Division.
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