ADVANCE DATA FROM THE QUARTERLY FINANCIAL REPORT FOR MANUFACTURING, MINING, AND TRADE CORPORATIONS--FIRST QUARTER 1993 (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. Manufacturing corporations' seasonally adjusted after-tax profits averaged 2.0 cents per dollar of sales for the first quarter of 1993, up 0.5 cents from the fourth quarter of 1992. The Commerce Department's Bureau of the Census also reported that on an unadjusted basis, after-tax profits for the first quarter also averaged 2.0 cents per dollar of sales, up 0.6 cents from the preceding quarter and up 8.5 cents from the same quarter in 1992. It should be noted that in the first quarter of 1993 and in the four quarters of 1992 after-tax profits were driven downward by the adoption of Financial Accounting Standards Board (FASB) Statement 106 (Employer's Accounting for Post-Retirement Benefits Other Than Pensions) by a large number of companies. The first quarters of both years were the most significantly affected by this change in accounting principle; corporations must show the cumulative effect of a change in accounting principle in the first quarter of the year in which the change is adopted. The magnitude of this accounting change's effect, and to a lesser extent FASB 109's (Accounting for Income Taxes), on first quarter 1992 earnings are illustrated in Table 4, which provides after-tax profits reported before and after adoption of FASB 106 and 109. For the first quarter of 1993, manufacturers' seasonally adjusted after-tax profits were $14.6 billion, up $3.8 billion from last quarter. On an unadjusted basis, first quarter after-tax profits were $14.1 billion, up $3.3 billion from last quarter and up $58.2 billion from the same quarter a year ago. Durable manufacturers' unadjusted after-tax profits were nominal, but up $3.1 billion over the loss reported in the fourth quarter of 1992. The underlying industry categories showed mixed results. Motor vehicles, down $2.4 billion, had a sharp increase in operating income more than offset by FASB 106 related costs. Instruments and nonferrous metals showed a similar pattern of FASB 106 costs resulting in a loss for the quarter although operating income was up. The marked improvements reported in machinery and electrical machinery were due mostly to the absence of significant nonrecurring charges made against last quarter's income. Fabricated metals rose sharply; lumber and furniture also improved. Iron and steel, and aircraft showed little change; stone, clay, and glass was down. When compared to the same quarter in 1992, in which an after-tax loss of $40.2 billion was reported, most of the underlying industries after-tax profits improved with motor vehicles responsible for over 60 percent of the improvement. Electrical machinery, aircraft, lumber, and furniture posted sharp earnings increases over first quarter 1992. Also improving significantly were stone, clay, and glass, iron and steel, nonferrous metals, and machinery. These increases were due chiefly to the early adoption of FASB 106 by a large number of companies during 1992. Fabricated metals and instruments were down 12.6 and 68.1 percent, respectively. Unadjusted after-tax profits for nondurable manufacturers were up $0.3 billion or 2.2 percent when compared to the fourth quarter of 1992, with the underlying industry categories showing mixed results. Paper and industrial chemicals reported significant increases in after-tax profits; last quarter these industries reported poor operating results and significant nonrecurring charges against income that included restructuring expenses and asset write-offs. Apparel, drugs, and petroleum also were up. Decreases in profits reported in food, textiles, and residual chemicals were primarily due to adoption of FASB 106. Printing was down 12.1 percent and rubber was flat. When compared to the first quarter of 1992, total nondurables were up $18.0 billion from the $4.0 billion loss reported that quarter. Most underlying industries reported sharp increases in after-tax profits. Industrial chemicals, drugs, and petroleum, were up $7.3 billion, $1.6 billion, and $6.6 billion respectively over first quarter last year. Also improving significantly were textiles, paper, printing, and rubber. These increases were due chiefly to the early adoption of FASB 106 by a large number of companies during 1992. Residual chemicals was down $1.4 billion; textiles and apparel also reported decreases in profitability. Unadjusted sales at the all nondurable manufacturing level were down $16.6 billion, or 4.3 percent, on a quarter-to-quarter basis, with petroleum's drop of $7.0 billion accounting for over 40 percent of the decrease. Food, apparel, printing, industrial chemicals, and residual of chemicals also were down. Drugs increased; textiles, paper, and rubber were flat. On a same quarter a year ago basis, nondurable manufacturers' sales were up $14.5 billion or 4.1 percent with the underlying nondurable categories improving, except for industrial chemicals, residual of chemicals, and rubber which showed little change. Durable manufacturers' unadjusted sales were down $11.6 billion or 3.2 percent when compared to the fourth quarter of 1992, with the underlying durable industry categories showing mixed results. Motor vehicles' increase of $3.2 billion was more than offset by sharp decreases in electrical machinery and aircraft, $5.4 and $3.8 billion, respectively. Also down were stone, clay and glass, machinery, instruments, and miscellaneous manufacturing. Iron and steel was up; nonferrous metals, fabricated metals, lumber, and furniture showed little change. When compared to the same quarter last year, durable manufacturers' sales were up $25.4 billion or 7.8 percent. Motor vehicles, up by $12.7 billion, accounted for over half of the overall increase. Machinery and electrical machinery also were up sharply, $4.9 and $5.7 billion, respectively. Stone, clay, and glass, instruments, and other durables also rose. Showing little change were primary metals and fabricated metals; aircraft was down $2.4 billion. The annual rate of return (after taxes) on stockholders' equity for manufacturing corporations was 5.6 percent compared to 4.1 percent last quarter and (17.4) percent for the same quarter last year. Also included in this release are first quarter 1993 data for large mining and wholesale corporations. These advance data, based on quarterly financial reports from about 8,700 corporations, were released today from the Quarterly Financial Report for Manufacturing, Mining, and Trade Corporations--First Quarter 1993 (QFR-93-1). 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. Second quarter 1993 advance data are scheduled for release on September 13, 1993. NOTES: This quarter's publication contains data revised due to the reclassification of corporations by industry. These changes are in addition to the usual revisions included in each publication that reflect respondents' corrections of submitted data subsequent to original publication. Schedule of Advance Data Release Dates--1993 Quarter Manufacturing, Mining, and Wholesale Trade Retail Trade First 1993 July 14, 1993 Second 1993 September 13, 1993 October 13, 1993 Third 1993 December 13, 1993 SOURCE: Quarterly Financial Report for Manufacturing, Mining, and Trade Corporations--QFR-93-1, June 1993. For sale by the Superintendent of Documents, U.S. Government Printing Office, Washington, D.C. 20402. The annual subscription rate is $24; single copy $10. Remittances from foreign countries must be by international money order or by draft on a U.S. bank, $30 a year; single copy $12.50. Files are also available on 5.25 inch flexible diskettes single- or double-sided, 8 or 9 sectors per track format. The cost of an annual subscription (four quarterly issues) is $96; $60 for the first diskette and $12 for each additional diskette. Questions concerning this report should be directed to Ronald Lee on (301) 763-4270 or Frank Hartman on (301) 763-4274. TABLE 1. PART A--QUARTERLY FINANCIAL REPORT FOR MANUFACTURING CORPORATIONS Seasonally Adjusted 1Q 4Q 1Q 1993 1992(1) 1992(1) Rate of return (after taxes): Cents per dollar of sales ................ 2.0 1.5 (6.8) Percent on equity (annual rate) .......... NA NA NA (million dollars) Net sales ................................. 738,800 739,059 697,626 Income after income taxes ................ 14,576 10,823 (47,409) Dividends paid (cash) .................... NA NA NA -------------------------------------------------------------------------- TABLE 1. PART B--QUARTERLY FINANCIAL REPORT FOR MANUFACTURING CORPORATIONS Unadjusted 1Q 4Q 1Q 1993 1992(1) 1992(1) Rate of return (after taxes): Cents per dollar of sales ................ 2.0 1.4 (6.5) Percent on equity (annual rate) .......... 5.6 4.1 (17.4) (million dollars) Net Sales.................................. 719,478 747,621 679,575 Income after income taxes ................ 14,084 10,741 (44,163) Dividends paid (cash) .................... 16,010 17,248 14,765 (1) Revised. ------------------------------------------------------------------------- TABLE 2. PART A--SALES AND PROFITS OF CORPORATIONS ENGAGED IN MANUFACTURING, MINING, AND TRADE--NOT SEASONALLY ADJUSTED Sales 1Q 4Q 1Q Industry Group 1993 1992(1) 1992(1) (million dollars) All manufacturing corporations ............ 719,478 747,621 679,575 Nondurable goods .......................... 368,689 385,253 354,189 Food and tobacco......................... 102,268 106,449 96,770 Textiles ................................ 15,285 15,308 14,599 Apparel(2)............................... 17,298 17,938 15,615 Paper ................................... 31,909 31,873 30,854 Printing ................................ 36,691 39,924 35,908 Chemicals ............................... 78,060 79,572 75,977 Industrial chemicals and synthetics(3).. 29,974 30,657 29,787 Drugs(3) ............................... 19,579 18,977 18,044 Residual of chemicals(3)(4)............. 28,507 29,939 28,146 Petroleum ............................... 65,644 72,632 63,128 Rubber .................................. 21,535 21,556 21,339 Durable goods ............................. 350,789 362,367 325,386 Stone, clay, and glass .................. 11,264 12,772 10,992 Primary metals .......................... 27,974 27,411 28,115 Iron and steel(3) ...................... 12,733 11,986 12,558 Nonferrous metals(3).................... 15,241 15,425 15,558 Fabricated metals ....................... 31,972 32,155 31,873 Machinery ............................... 67,510 69,693 62,586 Electrical machinery .................... 58,419 63,806 52,707 Transportation Equipment ................ 98,216 98,434 87,573 Motor vehicles and equipment(3) ........ 63,450 60,277 50,756 Aircraft, guided missiles, and parts(3). 30,594 34,369 32,961 Instruments ............................. 27,439 29,097 25,807 Other durable goods ..................... 27,995 29,000 25,733 Lumber and wood products(4) ............ 11,458 11,591 10,386 Furniture and fixtures(4) .............. 9,048 9,041 8,220 Miscellaneous manufacturing(4) ......... 7,490 8,369 7,127 Mining(5) ................................. 10,101 10,873 9,265 Wholesale trade(5) ........................ 188,411 198,014 180,275 Retail trade(5) ........................... NA 213,080 169,294 (1)Revised. (2)Includes leather industry. (3)Included in major industry above. (4)Not previously published. (5)Mining and trade data are quarterly results of companies in those divisions drawn into the sample in the fall of 1992 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-93-1, June 1993. For sale by the Superintendent of Documents, U.S. Government Printing Office, Washington, D.C. 20402. The annual subscription rate is $24; single copy $10. Remittances from foreign countries must be by international money order or by draft on a U.S. bank, $30 a year; single copy $12.50. Files are also available on 5.25 inch flexible diskettes single- or double-sided, 8 or 9 sectors per track format. The cost of an annual subscription (four quarterly issues) is $96; $60 for the first diskette and $12 for each additional diskette. Questions concerning this report should be directed to Ronald Lee on (301) 763-4270 or Frank Hartman on (301) 763-4274. ------------------------------------------------------------------------ TABLE 2. PART B--SALES AND PROFITS OF CORPORATIONS ENGAGED IN MANUFACTURING, MINING, AND TRADE--NOT SEASONALLY ADJUSTED After-Tax Profits 1Q 4Q 1Q Industry Group 1993 1992(1) 1992(1) (million dollars) All manufacturing corporations ............ 14,084 10,741 (44,163) Nondurable goods .......................... 14,068 13,798 (3,968) Food and tobacco ........................ 3,683 4,308 3,125 Textiles ................................ 229 668 296 Apparel(2) .............................. 646 577 750 Paper ................................... 697 121 (503) Printing ................................ 1,079 1,228 143 Chemicals ............................... 4,462 3,762 (3,118) Industrial chemicals and synthetics(3).. 1,563 (272) (5,774) Drugs(3) ............................... 3,078 2,492 1,475 Residual of chemicals(3)(4)............. (180) 1,541 1,181 Petroleum ............................... 2,723 2,576 (3,921) Rubber .................................. 549 558 (740) Durable goods ............................. 16 (3,057) (40,195) Stone, clay, and glass .................. (716) (319) (1,108) Primary metals .......................... (1,313) (959) (2,904) Iron and steel(3) ...................... (691) (650) (1,123) Nonferrous metals(3) ................... (621) (310) (1,781) Fabricated metals ....................... 805 116 921 Machinery ............................... (97) (5,897) (3,914) Electrical machinery .................... 2,932 2,077 631 Transportation equipment ................ (1,756) 425 (34,000) Motor vehicles and equipment(3) ........ (3,293) (939) (28,497) Aircraft, guided missiles, and parts(3). 1,432 1,387 (5,492) Instruments ............................. (866) 837 (515) Other durable goods ..................... 1,027 663 694 Lumber and wood products(4) ............ 534 346 376 Furniture and fixtures(4) .............. 341 134 138 Miscellaneous manufacturing(4).......... 152 183 181 Mining(5) ................................. 436 107 (684) Wholesale trade(5) ........................ 718 1,584 621 Retail trade(5) ........................... NA 2,917 (735) (1)Revised. (2)Includes leather industry. (3)Included in major industry above. (4)Not previously published. (5)Mining and trade data are quarterly results of companies in those divisions drawn into the sample in the fall of 1992 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-93-1, June 1993. For sale by the Superintendent of Documents, U.S. Government Printing Office, Washington, D.C. 20402. The annual subscription rate is $24; single copy $10. Remittances from foreign countries must be by international money order or by draft on a U.S. bank, $30 a year; single copy $12.50. Files are also available on 5.25 inch flexible diskettes single- or double-sided, 8 or 9 sectors per track format. The cost of an annual subscription (four quarterly issues) is $96; $60 for the first diskette and $12 for each additional diskette. Questions concerning this report should be directed to Ronald Lee on (301) 763-4270 or Frank Hartman on (301) 763-4274. ------------------------------------------------------------------------- TABLE 3. PART A--QUARTERLY FINANCIAL REPORT FOR MANUFACTURING CORPORATIONS--SEASONALLY ADJUSTED Net Sales Industry Group and Year Q1 Q2 Q3 Q4 (million dollars) All manufacturing: 1989 ............................ 683,501 693,660 686,471 681,597 1990 ............................ 689,280 692,563 709,655 719,015 1991 ............................ 672,453 684,968 703,056 700,340 1992r............................ 697,626 719,206 734,865 739,059 1993 ............................ 738,800 All nondurable manufacturing: 1989 ............................ 341,641 351,879 347,603 347,208 1990 ............................ 353,170 350,135 366,087 383,808 1991 ............................ 358,895 360,630 369,284 368,148 1992r............................ 361,934 374,839 382,604 381,590 1993 ............................ 376,751 All durable manufacturing: 1989 ............................ 341,859 341,781 338,868 334,389 1990 ............................ 336,111 342,428 343,568 335,207 1991 ............................ 313,557 324,338 333,772 332,192 1992r............................ 335,692 344,367 352,261 357,470 1993 ............................ 362,049 ------------------------------------------------------------------------- TABLE 3. PART B--QUARTERLY FINANCIAL REPORT FOR MANUFACTURING CORPORATIONS--SEASONALLY ADJUSTED After-Tax Profits Industry Group and Year Q1 Q2 Q3 Q4 (million dollars) All manufacturing: 1989 ............................ 39,769 33,625 33,789 29,229 1990 ............................ 29,498 32,375 29,645 19,219 1991 ............................ 18,937 21,589 17,277 8,598 1992r............................(47,409) 27,912 28,714 10,823 1993 ............................ 14,576 All nondurable manufacturing: 1989 ............................ 22,580 19,391 19,123 19,560 1990 ............................ 16,824 18,989 19,720 14,893 1991 ............................ 17,382 15,075 16,099 11,518 1992r............................ (4,095) 18,381 18,882 14,025 1993 ............................ 14,559 All durable manufacturing: 1989 ............................ 17,189 14,234 14,667 9,669 1990 ............................ 12,675 13,386 9,925 4,325 1991 ............................ 1,555 6,514 1,179 (2,920) 1992r............................(43,314) 9,531 9,832 (3,202) 1993 ............................ 17 rRevised SOURCE: Quarterly Financial Report for Manufacturing, Mining, and Trade Corporations--QFR-93-1, June 1993. For sale by the Superintendent of Documents, U.S. Government Printing Office, Washington, D.C. 20402. The annual subscription rate is $24; single copy $10. Remittances from foreign countries must be by international money order or by draft on a U.S. bank, $30 a year; single copy $12.50. Files are also available on 5.25 inch flexible diskettes single- or double-sided, 8 or 9 sectors per track format. The cost of an annual subscription (four quarterly issues) is $96; $60 for the first diskette and $12 for each additional diskette. Questions concerning this report should be directed to Ronald Lee on (301) 763-4270 or Frank Hartman on (301) 763-4274. ----------------------------------------------------------------------------- TABLE 4. COMPARISON OF PROFITS AFTER ADOPTION OF CHANGES IN ACCOUNTING PRINCIPLES--FIRST QUARTER 1992 After Before Industry Group Adoption Adoption (million dollars) All manufacturing corporations ............ (44,163) 24,743 Nondurable goods .......................... (3,968) 16,954 Food and tobacco ........................ 3,125 5,078 Textiles ................................ 296 296 Apparel(1)............................... 750 449 Paper ................................... (503) 776 Printing ................................ 143 892 Chemicals ............................... (3,118) 6,659 Industrial chemicals and synthetics(2).. (5,774) 1,821 Drugs(2) ............................... 1,475 3,240 Petroleum ............................... (3,921) 2,261 Rubber .................................. (740) 543 Durable goods ............................. (40,195) 7,789 Stone, clay, and glass .................. (1,108) (535) Primary metals .......................... (2,904) 258 Iron and steel(2) ...................... (1,123) (143) Nonferrous metals(2) ................... (1,781) 401 Fabricated metals ....................... 921 1,060 Machinery ............................... (3,914) 1,639 Electrical machinery .................... 631 1,836 Transportation equipment ................ (34,000) 720 Motor vehicles and equipment(2) ........ (28,497) 524 Aircraft, guided missiles, and parts(2). (5,492) 145 Instruments ............................. (515) 2,138 Other durable goods ..................... 694 674 Mining(3) ................................. (684) 28 Wholesale trade(3) ........................ 621 736 Retail trade(3) ........................... (735) 1,365 (1)Includes leather industry. (2)Included in major industry above. (3)Mining and trade data are quarterly results of companies in those divisions drawn into the sample in the fall of 1992 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-93-1, June 1993. For sale by the Superintendent of Documents, U.S. Government Printing Office, Washington, D.C. 20402. The annual subscription rate is $24; single copy $10. Remittances from foreign countries must be by international money order or by draft on a U.S. bank, $30 a year; single copy $12.50. Files are also available on 5.25 inch flexible diskettes single- or double-sided, 8 or 9 sectors per track format. The cost of an annual subscription (four quarterly issues) is $96; $60 for the first diskette and $12 for each additional diskette. Questions concerning this report should be directed to Ronald Lee on (301) 763-4270 or Frank Hartman on (301) 763-4274.