Manufacturing profits decreased in Q1

A Statistics Canada report says that while operating profits for Canadian corporations were unchanged in the first quarter of 2012, manufacturing profits decreased 16.2 per cent.

 According to a Bloomberg report, the reason for the static profits is because gains in the financial sector were offset by declines in the non-financial sector, and much of the decline came from the manufacturing sector.

Operating profits for Canadian corporations amounted to $75.2 billion in the first quarter, virtually unchanged from the fourth quarter of 2011. Gains in the financial sector were largely offset by declines in the non-financial sector.

Manufacturing profits decreased 16.2 per cent to $13.5 billion in the first quarter as eight of 13 manufacturing industries reported lower profits. Computer and electronic product manufacturers, motor vehicle and parts manufacturers and air, rail and ship products manufacturers led the decline.

In particular, profits for computer and electronic product manufacturers were down 96.7 per cent to $32 million compared with the previous quarter.

Profits for motor vehicles and parts manufacturers dropped 50.6 per cent to $812 million, while profits for air, rail and ship products manufacturers fell 58.9 per cent to $269 million.