Quarterly Financial Report for Manufacturing, Mining, and Trade Corporations

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, WHOLESALE AND RETAIL TRADE CORPORATIONS FOURTH QUARTER 2000

APRIL 2001-------------------Released 10 a.m. (EDT), Thursday, April 5, 2001 (CB01-63)
Contact: Ronald B. Horton (301) 457-3343 or Frank Hartman (301) 457-3379.

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Except where noted, all figures in text and tables are not seasonally adjusted.

Sales and after-tax profits data 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 total nondurable manufacturing, are presented in Table 3. Data for individual manufacturing industries are not seasonally adjusted.

CHART 1:

CHART 2:
[Manufacturing Profits Per Dollar of Sales]
After-Tax Profits and Sales - Seasonally Adjusted

Manufacturing corporations' seasonally adjusted after-tax profits for the fourth quarter of 2000 were $53.8 billion, down $18.9 (+\-1.7) billion from the third quarter, the Commerce Department's Census Bureau reported. Since peaking at $76.8 billion in the first quarter of 2000, after-tax profits have been declining as the result of increases in operating expenses. Manufacturers' sales at $1,131.7 billion showed no statistically significant change from the third quarter. Fourth quarter profits averaged 4.8 cents per dollar of sales, a decline of 1.6 (+\-0.2) cents from the third quarter.

Manufacturers of durable goods showed a larger drop in profits than those of non-durable goods. Durable goods manufacturers after-tax profits were $23.5 billion, a decrease of $12.8 (+\-1.2) billion or 35.2 percent (+\-3.0%) from the third quarter. Nondurable goods manufacturers after- tax profits of $30.3 billion, were down $6.1 (+\-1.2) billion or 16.7 percent (+\-2.6%). Sales of durable goods were $608.6 billion with profits averaging 3.9 cents per dollar of sales, down 2.0 (+\-0.2) cents from the prior quarter. Sales of nondurable goods manufacturers were $523.0 billion, with profits averaging 5.8 cents per dollar of sales, down 1.2 (+\-0.2) cents from last quarter.

After-Tax Profits and Sales - Not Seasonally Adjusted

On an unadjusted basis, manufacturers' after-tax profits in the fourth quarter of 2000 were $48.0 billion, down $13.7 (+\-1.4) billion or 22.1 percent (+\-2.1%) from the fourth quarter of 1999. Sales at $1,146.0 billion were up $63.8 (+\-11.0) billion or 5.9 percent (+\-1.0%) from the same quarter a year ago. Profits averaged 4.2 cents per dollar of sales for the fourth quarter, down 1.5 (+\-0.1) cents from the same quarter a year ago. After-tax profits for durable goods manufacturers were $20.8 billion, down $13.1 (+\-1.1) billion from the fourth quarter of 1999. Sales at $618.6 billion were up $15.0 (+\-7.0) billion or 2.5 percent (+\-1.2%) from the same quarter a year ago. Profits averaged 3.4 cents per dollar of sales, down 2.2 (+\-0.2) cents from the same quarter a year ago. Nondurable goods manufacturers reported after-tax profits of $27.2 billion showed no statistically significant change from the fourth quarter 1999, and sales of $527.4 billion, up $48.9 (+\-6.6) billion or 10.2 percent (+\-1.5%) from the fourth quarter of 1999. Their profits averaged 5.2 cents per dollar of sales compared with 5.8 cents, from the same quarter a year ago.

Industry Detail - Not Seasonally Adjusted

Unadjusted durable manufacturers' after-tax profits for the fourth quarter of 2000 were down $13.1 (+\-1.1) billion from the fourth quarter of 1999. High operating costs, along with increased nonoperating expenses were mainly responsible for the decline in after-tax profits reported by all industries in the durable manufacturing sector, except machinery. The largest decline, $4.7 (+\-0.1) billion, came from motor vehicle manufacturers which reported after-tax profits of $1.4 billion. Electrical machinery's profit of $8.9 billion was down $2.9 (+\-0.7) billion from last quarter as a result of higher operating costs and reduced dividend income. Fabricated metals and instruments reported a modest decline in after tax profit which resulted from an increase in nonoperating expense. Stone, clay and glass reported nonrecurring expenses that reduced its after-tax profit to $0.3 billion. Iron and steel closed the quarter with an after-tax loss of $1.2 billion with a decline in income from operations and increased nonrecurring expenses.

When compared to the third quarter of 2000, unadjusted durable manufacturers' after-tax profits were down $13.3 (+\-1.2) billion reflecting declines in all industries except aircraft. Aircraft's $1.5 billion after-tax profit increased $0.4 (+\-0.1) billion over last quarter. This increase was due to lower nonoperating expenses and a slight increase in equity income more than offsetting the decline in operating profits and increased nonrecurring losses. Six industries reported declines in profits in excess of $1.0 billion when compared to last quarter. This was mainly due to lower operating profits. However, the largest decline, $2.9 (+\-0.5) billion, was in machinery, except electrical which was caused by lower equity earnings and dividend income. Electrical machinery's $2.8 (+\-0.8) billion decline came from increases in both operating and nonoperating expenses which were partly offset by a slight increase in equity income. Fabricated metals' $2.6 (+\-0.4) billion, iron and steel's $1.3 (+\-0.1) billion and stone, clay and glass' $1.0 (+\-0.3) billion declines were all due to lower operating and nonoperating income. Motor vehicles' decline of $1.3 (+\-0.1) billion in operating income was partly offset by nonrecurring gains.

Unadjusted nondurable manufacturers' after-tax profits for the fourth quarter of 2000 were about the same as the fourth quarter a year ago. Increases in petroleum and residual chemicals offset declines in other nondurable goods manufacturing industries. Petroleum's increase of $7.4 (+\-0.1) billion resulted from continued improvements in operating profits and equity income as well as lower nonrecurring losses over this quarter last year. Residual of chemicals' increase of $1.7 (+\-0.1) billion came from lower nonrecurring charges and improved equity earnings. The largest decline was in drugs, down $3.5 (+\-0.3) billion, due to nonrecurring losses and reduced equity income more than offsetting an increase in operating profits.

Large Retailers' After Tax Profits and Sales - Not Seasonally Adjusted

After tax profits of large retail corporations with assets of $50 million and over were reported at $9.4 billion, down 18.7 (+\-3.1) percent from fourth quarter 1999 and down 5.0 percent from fourth quarter 1998. Although operating income declined $1.0 billion from the same quarter last year, an increase in net nonoperating expense of $2.3 billion was also reported, primarily resulting from restructuring costs. Sales for these large retailers for fourth quarter 2000 were $373.3 billion, up 8.6 (+\-1.4) percent from a year ago, while operating costs, at $346.5 billion were up 9.5 percent. After tax profits per dollar of sales averaged 2.5 (+\-0.1) cents per dollar compared to 3.3 (+\-0.1) cents per dollar of sales in the fourth quarter 1999.

Also included in this release are fourth quarter 2000 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 Fourth quarter 2000 (QFR- 00-4). 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.

The publication becomes available for sale approximately two weeks from the date of this release from the Superintendent of Documents, P.O. Box 371954, Pittsburgh, PA 15250-7954 (202-512-1800). The cost for an annual subscription is $39 domestic and $48.75 foreign. Remittances from foreign countries must be by international money order or by draft on a U.S. bank. Files are also available on 3.5 inch flexible diskettes from U.S. Department of Commerce, Census Bureau (MS1921), P.O. Box 277943, Atlanta, GA 30384-7943 (301-763-INFO(4636)). The annual subscription cost is $80; $50 for the programs and documentation. First quarter 2001 advance data are scheduled for release on June 15, 2001.

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:

The complete report, Quarterly Financial Report for Manufacturing, Mining and Trade Corporations, is available for download, under "Products: Publication", at <http://www.census.gov/csd/qfr/>.

This press release is available in page image format (.pdf). This press release is available on the day of issue on the Internet (http://www.census.gov/csd/www/qfr.html).

Files are also available on 3.5 inch flexible diskettes from U.S. Department of Commerce, Census Bureau (MS1921), P.O. Box 277943, Atlanta, GA 30384-7943 (301-763-INFO(4636)). The annual subscription cost is $80; $50 for the programs and documentation.

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

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



                                                    Seasonally Adjusted

                                                 4Q        3Q        4Q    

                                               2000      2000(1)   1999(1) 

Rate of return (after taxes):

 Cents per dollar of sales ................     4.8       6.4       6.3

 Percent on equity (annual rate) ..........      NA        NA        NA    



                                                   (million dollars) 

Sales ....................................1,131,663 1,137,503 1,068,051

 Income after income taxes ................  53,849    72,737    67,738

 Dividends paid (cash) ....................      NA        NA        NA

(1) Revised.