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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--FIRST QUARTER 2002

JUNE 2002-------------------Released 10 a.m. (EDT), Friday, June 14, 2002 (CB02-81)
Contact: Ronald B. Horton (301) 457-3343 or Frank Hartman (301) 457-3379.

Availability | Order & Release | QFR Program |



NOTE: Effective fourth quarter 2000, data in this release are presented on the North American Industry Classification System (NAICS) basis. Data prior to fourth quarter 2000 are presented on the Standard Industrial Classification (SIC) system basis. Comparison of NAICS data to SIC data in this release (Table 3) are useful only for trend analysis. For additional information on QFR publication visit our website at http://www.census.gov/csd/qfr/.


CHART 1:
[CHART 1: Manufacturing After-Tax Profits]
CHART 2:
[Manufacturing Profits Per Dollar of Sales]

Seasonally Adjusted After-Tax Profits and Sales Manufacturing Corporations

Manufacturing corporations' seasonally adjusted after-tax profits for the first quarter of 2002 were $24.5 billion, up $15.2 (+/-1.4) billion from the fourth quarter 2001, the Commerce Department's Census Bureau reported. This is the first increase in profits since the second quarter last year. Profits for the quarter were up $27.3 (+/-0.4) billion from a loss of $2.8 billion in first quarter of 2001, but remain significantly below the $70 billion levels of early 2000. Profits per dollar of sales at 2.4 cents showed the first increase since the second quarter 2001 when the ratio was 1.6 cents. Profits of nondurable manufacturers, however, continue to offset losses by durable manufacturers.

First quarter 2002 sales of manufacturers at $1,035.3 billion showed no significant change from the prior quarter, following three consecutive quarterly declines. Sales were down $79.1 (+/-8.6) billion from first quarter 2001.

Durable Goods Manufacturers: Durable goods manufacturers recorded their fifth consecutive quarterly after-tax loss. However, the $1.2 billion loss this quarter was significantly less than those in the prior four quarters. Sales for this quarter were $570.6 billion, with losses averaging 0.2 cents per dollar of sales for the quarter, 1.8 cents in the fourth quarter 2001, 2.7 cents in the third quarter, 2.8 cents in the second quarter, and 5.7 cents in the first quarter.

Nondurable Goods Manufacturers: Nondurable goods manufacturers' first quarter 2002 after-tax profits were $25.8 billion, up from the $19.3 billion in the previous quarter, and down $5.8 (+/-0.7) billion from the first quarter 2001. Sales were $464.6 billion, with profits averaging 5.5 cents per dollar of sales, up 1.4 (+/-0.1) cents from the previous quarter, and down 0.7 (+/-0.1) cents from the first quarter 2001.

Unadjusted After-Tax Profits and Sales Manufacturing Corporations

Manufacturing corporations' unadjusted after-tax profits in the first quarter 2002 were $27.8 billion, up $27.9 (+/-0.4) billion from $0.2 billion loss in the first quarter a year ago. Sales at $1,005.0 billion were down $77.2 (+/-8.6) billion from the same quarter a year ago. Profits averaged 2.8 cents per dollar of sales compared to 0.0 cents a year earlier.

Durable Goods Manufacturers: Durable goods manufacturers had a profit of $2.2 billion in the first quarter 2002 compared to a $31.6 billion loss in the first quarter 2001. The improvement in after-tax profit in first quarter 2002 was due to lower nonrecurring charges in first quarter 2002 than in first quarter 2001. Six of the ten durable goods categories posted after-tax profits. Electrical equipment, appliances, and components had a $4.7 billion profit. Miscellaneous manufacturing had a profit of $1.9, and transportation equipment and fabricated metals products $1.6 billion each.

Offsetting these gains were losses of $6.9 billion in computer and electronic products and $1.6 billion in machinery products.

First quarter 2002 sales of durable manufacturers, at $554.7 billion, were down $36.9 (+/-6.6) billion or 6.2 (+/-1.1) percent from a year earlier. Profits for the current quarter averaged 0.4 cents per dollar of sales.

When compared to the fourth quarter 2001 after-tax loss of $13.6 billion, durable manufacturers after-tax profits rose $15.8 (+/-0.2) billion in the first quarter 2001, about a third of which ($5.7 billion) came from motor vehicles and parts, and $3.1 billion from computer and electronics.

Nondurable Goods Manufacturers: Nondurable goods manufacturers after-tax profits were down $5.9 (+/-0.7) billion from the $31.6 billion recorded in the first quarter 2001. An $8.7(+/-0.1) billion decline in petroleum and coal products resulting from lower operating profits and equity income was partially offset by $1.2 (+/-0.2) billion in beverage and tobacco products due to higher operating income.

First quarter 2002 sales of $450.3 billion, were down $40.4 (+/-5.5) billion from last year. Profits averaged 5.7 cents per dollar of sales compared to 6.4 cents a year ago.

When compared to fourth quarter of 2001 after-tax profit of $16.8 billion, nondurable goods manufacturers after-tax profits were up $8.7(+/-0.7) billion with petroleum, paper products, beverage and tobacco each accounting for over $2.0 billion.

Unadjusted After-Tax Profits and Sales of Mining and Trade Corporations

Mining Corporations:. First quarter 2002 after-tax profits of large mining corporations with assets of $50 million and over were reported at $1.0 billion, compared to a profit of $5.9 billion same quarter a year ago. Sales for these mining corporations for the first quarter 2002 were $18.6 billion, down $15.8 (+/-0.4) billion from the same quarter a year ago. After-tax profit per dollar of sales averaged 5.1 cents compared to 17.3 cents profits per dollar of sales in the first quarter 2001.

Wholesale Trade Corporations: First quarter 2002 after-tax profits of large wholesale corporations with assets of $50 million and over were $3.5 billion, up $1.3 (+/-0.3) billion from the first quarter 2001. Sales for these wholesalers were $291.4 billion, down $24.3 (+/-4.5) billion from the same quarter a year ago. After-tax profits per dollar of sales averaged 1.2 cents compared to 0.7 cents in the first quarter 2001.

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- First quarter 2002 (QFR-02-1). 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. Second quarter 2002 advance data are scheduled for release on September 13, 2002.

EXPLANATORY NOTES:

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).

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	


                                                 1Q        4Q        1Q    

                                               2002      2001      2001    

Rate of return (after taxes):

 Cents per dollar of sales ................     2.4       0.9      (0.3)

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



                                                   (million dollars) 

Sales ....................................1,035,275 1,033,027 1,114,376

 Income after income taxes ................  24,538     9,343    (2,811)

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






*Some of the data in this table have been revised since first published.

SOURCE: Quarterly Financial Report for Manufacturing, Mining, and Trade Corporations--QFR-02-1, June 2002. U.S. Census Bureau, June 2002.


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



 						    Unadjusted	

                                                       

                                        	1Q        4Q        1Q    

                                               2002      2001      2001    

Rate of return (after taxes):

 Cents per dollar of sales ................     2.8      0.3       0.0

 Percent on equity (annual rate) ..........     6.1      0.7      (0.0)   

                                                  

                                                   (million dollars) 

Sales ....................................1,004,993 1,041,475 1,082,233

 Income after income taxes ................  27,768     3,215      (172)

 Dividends paid (cash) ....................  21,340    29,183    25,428

*Some of the data in this table have been revised since first published.

SOURCE: Quarterly Financial Report for Manufacturing, Mining, and Trade Corporations--QFR-02-1, June 2002. U.S. Census Bureau, June 2002.


TABLE 2. PART A--UNADJUSTED SALES AND PROFITS FOR MANUFACTURING, MINING, AND TRADE CORPORATIONS



                                                      Sales

                                                        

                                            	1Q        4Q        1Q 

                Industry Group                 2002      2001      2001    

                                                   (million dollars)

All manufacturing corporations(1)..........1,004,993 1,041,475 1,082,233



All nondurable goods.......................  450,263   474,627   490,619

  Food.....................................   76,303    81,864    79,409

  Beverage and tobbaco products............   33,086    38,081    34,221

  Textiles mills and textile product mills.   11,592    11,004    12,325 

  Apparel and leather products.............   21,453    22,521    23,129

  Paper ...................................   37,069    37,671    40,680

  Printing and related support activities..   16,192    17,310    17,411

  Petroleum and coal products..............   97,338   106,636   118,006

  Chemicals ...............................  127,373   129,141   133,720

   Basic chemicals, resins, and               

    synthetics(2)..........................   36,300    35,149    43,671

   Pharmaceuticals and medicines(2)........   55,750    58,376    53,159

   All other chemicals(2)..................   35,323    35,616    36,890

  Plastics and rubber products.............   29,857    30,400    31,717

                                                                        

All durable manufacturing..................  554,731   566,848   591,615

  Wood products............................   14,758    14,749    13,665

  Nonmetallic mineral products.............   19,191    21,805    20,200

  Primary metals...........................   33,156    32,603    37,307 

   Iron, steel, and ferroalloys(2).........   13,491    13,379    14,533

   Nonferrous metals(2)....................   14,224    13,977    18,002

   Foundries(2)............................    5,441     5,247     4,773

  Fabricated metal products................   47,947    47,744    50,067

  Machinery ...............................   59,058    62,739    67,314

  Computer and electronic products.........  114,944   118,314   143,589

   Computer and peripheral equipment(2)....   38,824    39,837    43,563

   Communications equipment(2).............   22,888    23,937    33,534

   All other electronic products(2)........   53,232    54,540    66,492

  Electrical equipment, appliances and

   components..............................   45,331    44,359    46,324

  Transportation equipment ................  181,319   184,549   175,062

   Motor vehicles and parts(2).............  133,305   129,643   126,898

   Aerospace products and parts(2).........   39,875    45,092    37,960

  Furniture and related products...........   14,478    14,609    14,929

  Miscellaneous manufacturing..............   24,549    25,376    23,157



All mining(1)..............................   18,593    21,097    34,380

All wholesale trade(1).....................  291,425   300,335   315,767

All retail trade(1)........................       NA   375,400   318,014

*Some of the data in this table have been revised since first published. (1)Mining and trade data are 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. (2)Included in major industry above.

SOURCE: Quarterly Financial Report for Manufacturing, Mining, and Trade Corporations--QFR-02-1, June 2002. U.S. Census Bureau, June 2002.


TABLE 2. PART B--UNADJUSTED SALES AND PROFITS FOR MANUFACTURING, MINING, AND TRADE CORPORATIONS



 

                                                 Operating Profits*

                                                 1Q        4Q        1Q

                Industry Group                 2002      2001      2001   

                                                   (million dollars)

All manufacturing corporations(1)..........   46,166    27,820    51,892



All nondurable goods.......................   32,633    25,945    36,992

  Food.....................................    5,236     5,490     4,683

  Beverage and tobbaco products............    6,451     5,918     4,398

  Textiles mills and textile product mills.      496       440       632 

  Apparel and leather products.............    1,475       839     1,550

  Paper ...................................    2,035     1,738     2,615

  Printing and related support activities..      765       577       888

  Petroleum and coal products..............    1,763     2,008    11,294

  Chemicals ...............................   12,630     8,293     9,439

   Basic chemicals, resins, and               

    synthetics(2)..........................    1,373       238      (437)

   Pharmaceuticals and medicines(2)........    8,194     5,863     7,130

   All other chemicals(2)..................    3,063     2,192     2,745

  Plastics and rubber products.............    1,780       641     1,494

                                                                        

All durable manufacturing..................   13,533     1,875    14,900

  Wood products............................      445        30        49

  Nonmetallic mineral products.............      611       790       958

  Primary metals...........................      387      (255)      348

   Iron, steel, and ferroalloys(2).........     (265)     (360)     (568)

   Nonferrous metals(2)....................      456        43       713

   Foundries(2)............................      196        62       203

  Fabricated metal products................    3,283     1,822     3,618

  Machinery ...............................    2,230     1,125     4,339

  Computer and electronic products.........   (4,740)   (8,584)   (4,569)

   Computer and peripheral equipment(2)....     (187)      231       948

   Communications equipment(2).............   (4,575)   (6,857)   (8,778)

   All other electronic products(2)........       23    (1,957)    3,260

  Electrical equipment, appliances and

   components..............................    5,010     4,145     4,717

  Transportation equipment ................    3,124       208     3,426

   Motor vehicles and parts(2).............     (548)   (2,802)     (754)

   Aerospace products and parts(2).........    3,190     2,319     3,390

  Furniture and related products...........      915       597       970

  Miscellaneous manufacturing..............    2,267     1,996     1,042



All mining(1)..............................    1,247     1,692     8,157

All wholesale trade(1).....................    6,885     7,680     6,292

All retail trade(1)........................       NA    20,336    12,667

*Operating profits before nonoperating income and expense items and income taxes. **Some of the data in this table have been revised since first published. (1)Mining and trade data are 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. (2)Included in major industry above.

SOURCE: Quarterly Financial Report for Manufacturing, Mining, and Trade Corporations--QFR-02-1, June 2002. U.S. Census Bureau, June 2002.


TABLE 2. PART C--UNADJUSTED SALES AND PROFITS FOR MANUFACTURING, MINING, AND TRADE CORPORATIONS



 

                                                 After-Tax Profits

                                               1Q        4Q        1Q 

                Industry Group                 2002      2001      2001   

                                                   (million dollars)

All manufacturing corporations(1)..........   27,768     3,215      (172)



All nondurable goods.......................   25,540    16,806    31,425

  Food.....................................    3,122     2,500     2,460

  Beverage and tobbaco products............    4,365     2,149     3,193

  Textiles mills and textile product mills.       40        71        72 

  Apparel and leather products.............    1,069       319       901

  Paper ...................................      725    (1,581)      829

  Printing and related support activities..      393        71       246

  Petroleum and coal products..............    3,948     1,274    12,607

  Chemicals ...............................   11,134    13,095    10,539

   Basic chemicals, resins, and               

    synthetics(2)..........................     (294)    2,602      (297)

   Pharmaceuticals and medicines(2)........    9,556     9,025     9,279

   All other chemicals(2)..................    1,872     1,468     1,557

  Plastics and rubber products.............      745    (1,092)      578 

                                                                        

All durable manufacturing..................    2,228   (13,591)  (31,597)

  Wood products............................      638      (206)     (209)

  Nonmetallic mineral products.............     (179)      (81)      522

  Primary metals...........................     (116)   (1,957)     (173)

   Iron, steel, and ferroalloys(2).........     (483)   (1,484)     (999)

   Nonferrous metals(2)....................      297      (336)      744

   Foundries(2)............................       70      (138)       82

  Fabricated metal products................    1,626      (955)    2,169

  Machinery ...............................   (1,597)      176     3,242

  Computer and electronic products.........   (6,944)  (10,018)  (44,477)

   Computer and peripheral equipment(2)....    1,501     2,013     1,276

   Communications equipment(2).............   (7,429)   (9,065) (47,305)

   All other electronic products(2)........   (1,061)   (2,967)    1,553

  Electrical equipment, appliances and

   components..............................    4,713     3,419     3,986

  Transportation equipment ................    1,606    (5,152)    1,898

   Motor vehicles and parts(2).............     (753)   (6,436)     (899)

   Aerospace products and parts(2).........    2,142       858     2,381

  Furniture and related products...........      541       302       534

  Miscellaneous manufacturing..............    1,942       882       913



All mining(1)..............................      954      (511)    5,936

All wholesale trade(1).....................    3,486     2,921     2,186

All retail trade(1)........................       NA     9,259     5,834

*Some of the data in this table have been revised since first published. (1)Mining and trade data are 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. (2)Included in major industry above.

SOURCE: Quarterly Financial Report for Manufacturing, Mining, and Trade Corporations--QFR-02-1, June 2002. U.S. Census Bureau, June 2002.


TABLE 3. PART A--SEASONALLY ADJUSTED SALES FOR MANUFACTURING CORPORATIONS



 

 

                                                  Sales(1)(2)

         Industry Group and Year        Q1       Q2        Q3       Q4

                                              (million dollars)

All manufacturing:

    1994 ..........................  784,482   803,035   825,313   841,727

    1995 ..........................  871,276   872,770   883,573   899,749

    1996 ..........................  914,239   932,616   948,312   961,353

    1997 ..........................  965,780   972,314   986,677   995,351

    1998 ..........................  989,682   981,732   986,039   993,699

    1999 ..........................1,002,548 1,026,727 1,048,713 1,071,196

    2000 ..........................1,119,343 1,128,220 1,147,226 1,119,384

    2001 ..........................1,114,376 1,095,075 1,066,461 1,033,027

    2002 ..........................1,035,275

All nondurable manufacturing:

    1994 ..........................  387,249   394,755   405,708   409,989

    1995 ..........................  425,606   427,673   430,818   435,993

    1996 ..........................  442,144   452,378   457,677   463,169

    1997 ..........................  463,122   456,470   461,210   463,840

    1998 ..........................  452,134   446,055   443,503   440,229

    1999 ..........................  445,123   453,153   461,059   475,742

    2000 ..........................  505,906   515,766   527,915   504,001

    2001 ..........................  506,408   506,629   490,055   473,172

    2002 ..........................  464,648

All durable manufacturing:

    1994 ..........................  397,233   408,280   419,605   431,738

    1995 ..........................  445,670   445,097   452,755   463,756

    1996...........................  472,095   480,238   490,635   498,184

    1997 ..........................  502,658   515,844   525,467   531,511

    1998 ..........................  537,548   535,677   542,536   553,470

    1999 ..........................  557,425   573,574   587,654   595,454

    2000 ..........................  613,437   612,454   619,311   615,383

    2001 ..........................  607,968   588,446   576,406   559,855

    2002 ..........................  570,627



(1)The seasonally adjusted estimates presented in this table were derived using a combination of SIC-based and NAICS-based estimates. (2)Some of the data in this table have been revised since first published.

SOURCE: Quarterly Financial Report for Manufacturing, Mining, and Trade Corporations--QFR-02-1, June 2002. U.S. Census Bureau, June 2002.


TABLE 3. PART B--SEASONALLY ADJUSTED NET INCOME AFTER-TAX FOR MANUFACTURING CORPORATIONS



 

                                            After-Tax Profits(1)(2)

                                              

         Industry Group and Year         Q1       Q2        Q3       Q4

                                               (million dollars)

All manufacturing:

    1994 ..........................   36,420    41,091    45,436    52,131

    1995 ..........................   52,736    51,908    49,414    44,275

    1996 ..........................   51,081    53,929    61,346    58,810

    1997 ..........................   60,438    61,876    62,107    60,457

    1998 ..........................   74,025    49,371    61,494    49,978

    1999 ..........................   58,605    64,064    67,656    67,895

    2000 ..........................   75,331    72,106    75,292    47,874

    2001 ..........................   (2,811)   17,882    11,519     9,343

    2002 ..........................   24,538

All nondurable manufacturing:

    1994 ..........................   18,985    19,817    22,450    26,564

    1995 ..........................   25,870    28,187    27,598    22,251

    1996 ..........................   28,032    28,302    32,115    30,463

    1997 ..........................   33,398    30,685    30,493    28,709

    1998 ..........................   29,738    28,666    30,680    17,637

    1999 ..........................   26,413    29,204    31,142    30,729

    2000 ..........................   37,427    39,119    36,761    29,027

    2001 ..........................   31,603    34,625    26,823    19,252

    2002 ..........................   25,778

All durable manufacturing:

    1994 ..........................   17,435    21,274    22,986    25,567

    1995 ..........................   26,866    23,721    21,816    22,024

    1996 ..........................   23,049    25,627    29,231    28,347

    1997 ..........................   27,040    31,191    31,614    31,748

    1998 ..........................   44,287    20,705    30,814    32,341

    1999 ..........................   32,192    34,860    36,514    37,166

    2000 ..........................   37,904    32,987    38,531    18,847

    2001 ..........................  (34,414)  (16,743)  (15,304)   (9,909)

    2002 ..........................   (1,240)





(1)The seasonally adjusted estimates presented in this table were derived using a combination of SIC-based and NAICS-based estimates. (2)Some of the data in this table have been revised since first published.

SOURCE: Quarterly Financial Report for Manufacturing, Mining, and Trade Corporations--QFR-02-1, June 2002. U.S. Census Bureau, June 2002.



ORDER & RELEASE INFORMATION

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 annual subscription rate is $34, (foreign customers, $42.50 on an international money order or by draft on a U.S. bank). Single publication copies are $10 and $12.50, respectively and are available at the Bureau of the Census, (301) 457-4100.

Schedule of Advance Data Release Dates--2002
[Economic Indicator Release Schedule]



Quarter         Manufacturing, Mining, and Wholesale Trade        Retail Trade

                            

             

First  2002                		                             July 16, 2002

Second 2002           September 13, 2002                          October 16, 2002

Third  2002            December 13, 2002        



Conversion to the North American Industry Classification System

Effective fourth quarter 2000, data in this release are presented on the North American Industry Classification System (NAICS). Data prior to fourth quarter 2000 are presented on the Standard Industrial Classification (SIC) system. There are major changes in how industries are defined, requiring the movement of many corporations to different industry categories. Nearly all published industry groupings have been affected by the conversion to NAICS. Major changes include the following: • Publishing, part of SIC Manufacturing Major Group 27, has been deleted from the Manufacturing sector, and Eating and Drinking Places, SIC Retail Trade Major Group 58, (included in All Other Retail Trade in the SIC Publication) has been deleted from the Retail Trade sector. These industries have been moved to NAICS sectors outside of Manufacturing, Mining and Trade. Printing and Related Support Activities, the remainder of SIC 27, now comprises NAICS subsector 323. • A new group has been created, NAICS subsector 334, Computer and Electronic Product Manufacturing. This group is primarily comprised of parts of SIC Major Groups 35 Machinery, Except Electrical; 36, Electrical and Electronic Equipment; and 38, Instruments and Related Products. The new group presents for the first time separate financial data for manufacturers of Computer and Peripheral Equipment, as well as for Communications Equipment. • Most of the remainder of SIC Major Group 35, Machinery, Except Electrical, is now included in NAICS subsector 333, Machinery Manufacturing; and the remainder of SIC Major Group 36, Electrical and Electronic Equipment, is in NAICS subsector 335, Electrical Equipment, Appliance and Component Manufacturing. • SIC Major Group 38, Instruments and Related Products, was reorganized with the major sections moving to NAICS subsector 334, Computer and Electronic Product Manufacturing; NAICS subsector 333, Machinery Manufacturing, and NAICS subsectore 339, Miscellaneous Manufacturing. • Food Manufacturing, NAICS subsector 311, and Beverage and Tobacco products Manufacturing, NAICS subsector 312, previously combined on an SIC basis, are now published separately. • NAICS subsector 331, Primary Metal Manufacturing, formerly SIC Major Group 33, has a new industry group, Foundries. Foundries was previously included in the SIC Ferrous and Non-Ferrous categories. • A number of other NAICS groups, while largely consistent with their SIC counterparts, have small but noticeable changes due to the transfer of certain product lines from one group to another. Once example is NAICS subsector 336, Transportation Equipment Manufacturing, which includes products such as vehicle seating, lighting, and air-conditioning that were not part of SIC 37, Transportation Equipment. • NAICS expands the definition of Manufacturing to include companies that perform the entrepreneurial functions of manufacturing, but contract out the actual making of the product. This includes companies contracting overseas for manufacturing their products. The operations of those foreign plants are not fully consolidated in the financial reports, but are reported on the equity or cost basis of accounting. This change resulted in the reclassification of a number of companies from Wholesale Trade in the SIC publication to Manufacturing in the NAICS publication. For a comprehensive treatment of the SIC to NAICS Conversion, see the 1997 NAICS manual, or visit the NAICS Web site at http://www.census.gov/naics.

Questions concerning this advance report should be directed to Contact: Ronald B. Horton (301) 457-3343 or Frank Hartman (301) 457-3379.


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Source: U.S. Census Bureau, Company Statistics Division
Maintained by Traci Gillespie-Brown

Revised Monday, 01-Mar-2004 09:03:15 EST.

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