ADVANCE DATA FROM THE QUARTERLY FINANCIAL REPORT FOR MANUFACTURING, MINING, AND TRADE CORPORATIONS--SECOND QUARTER 1994 (Except where noted, all figures in text and tables are not seasonally adjusted.) Sales and after-tax profits 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 4.9 cents per dollar of sales for the second quarter of 1994, up 0.1 cents from the first quarter of 1994. The Commerce Department's Bureau of the Census also reported that on an unadjusted basis, after-tax profits for second quarter averaged 5.7 (+/-0.03) cents per dollar of sales, up 1.0 (+/-0.05) cents from the preceding quarter and up 2.4 (+/-0.05) cents from the same quarter in 1993. For the second quarter of 1994, manufacturers' seasonally adjusted after- tax profits were $39.5 billion, up $1.4 billion from last quarter. On an unadjusted basis, second quarter after-tax profits were $46.5 billion, up $11.2 (+/-0.7) billion from last quarter and up $21.2 (+/-0.7) billion from the same quarter a year ago. Unadjusted durable manufacturers' after-tax profits were $25.8 billion, up $9.6 billion or 58.9 percent (+/-2.6%) when compared to the first quarter of 1994. All underlying durable industry categories reported increases, except miscellaneous manufacturing. Machinery lead the group with an increase of $2.4 billion. Motor vehicles' increase of $2.2 billion and stone, clay, and glass's increase of $1.5 billion were due to improved operating profits and the absence of significant nonrecurring charges reported last quarter. The improvements in electrical machinery, instruments, lumber and wood products, furniture and fixtures, steel, and nonferrous metals were due primarily to improvements in operating profits. Aircraft's increase was due chiefly to an increase in foreign earnings. When compared to the second quarter of 1993, total durables were up $16.5 (+/-0.7) billion from that quarter's after-tax profits of $9.4 billion. All underlying durable categories were up, except stone, clay, and glass which was down and steel and miscellaneous manufacturing which were flat. Machinery's increase of $11.6 billion over second quarter last year was a result of notable increases in operating profits and the absence of significant restructuring charges reported last year. Upturns in motor vehicles, electrical machinery, instruments, nonferrous metals, lumber, and furniture and fixtures were due to improved operating profits. The decline in stone, clay, and glass was due largely to the absence of significant nonrecurring gains from asset sales reported in the second quarter of 1993. Unadjusted nondurable manufacturers' after-tax profits were $20.6 billion, up $1.7 billion or 8.8 percent (+/-1.2%) when compared to the first quarter of 1994. Most underlying nondurable industry categories were up. Rubber, residual chemicals, apparel, printing, paper, petroleum and textiles reported increases. The improvements in rubber, apparel, and printing were due to improved operating profit margins and the absence of significant nonrecurring charges reported last quarter. Residual chemical's increase of $0.6 billion, as well as the increase of paper and textiles, were a result of improvements in operating profits. Drug's $1.2 billion decrease was due to a decline in operating profits and an increase in nonrecurring charges. Food and tobacco's decline resulted from substantial nonrecurring charges this quarter more than offsetting improvements in operating profits. When compared to the same quarter of 1993, nondurable manufacturers' profits were up $4.8 billion or 30.1 percent (+/-1.8%). Most underlying industries reported increases. Residual chemical's increase of $3.8 billion was due to improved operating profits and the absence of significant nonrecurring charges reported in the second quarter of 1993. The increases in food and tobacco, paper, printing, rubber, and apparel were due to improved operating profits. The declines in petroleum and textiles were primarily due to decreases in operating profits. Industrial chemicals and drugs were flat. Manufacturers' seasonally adjusted sales for the second quarter of 1994 were $801.4 billion, up $14.7 billion or 1.9 percent from last quarter. On an unadjusted basis, sales were $820.6 billion, up $61.9 billion or 8.2 percent (+/-0.7%) from last quarter and up $53.2 billion or 6.9 percent (+/-0.9%) from the second quarter of 1993. Seasonally adjusted sales at the nondurable manufacturing level were $395.0 billion, up $6.8 billion or 1.8 percent from last quarter. Seasonally adjusted durable manufacturers' sales were $406.5 billion, up $7.9 billion or 2.0 percent from last quarter. Unadjusted sales at the nondurable manufacturing level were $399.5 billion, up $25.2 billion or 6.7 percent (+/-1.1%) from last quarter and up $13.1 billion or 3.4 percent (+/-1.2%) from the second quarter of 1993. Unadjusted durable manufacturers' sales were $421.1 billion, up $36.8 billion or 9.6 percent (+/-1.4%) when compared to the first quarter of 1994. On a same quarter a year ago basis, durable manufacturers' sales were up $40.1 billion or 10.5 percent (+/-1.5%). Also included in this release are second quarter 1994 data for large mining and wholesale trade corporations. These advance data, based on quarterly financial reports from about 8,900 corporations, were released today from the Quarterly Financial Report for Manufacturing, Mining, and Trade Corporations--Second Quarter 1994 (QFR-94-2). 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. Third quarter 1994 advance data are scheduled for release on December 13, 1994. EXPLANATORY NOTES This quarter's publication contains data revised due to the reclassification of corporations by industry, and revisions that reflect respondents' corrections submitted data subsequent to original publication. The margin of sampling error, as used in this press release, indicates a range about the estimate which corresponds to a 90 percent confidence interval. If, for example, the estimate is up 5.0 percent and the margin of sampling error is 4.0 percentage points above or below the estimate, then the indicated range is 1.0 percent to 9.0 percent. If the range contains zero (0) it is uncertain whether there was an increase or a decrease. The quarterly publication includes explanations of confidence intervals and sampling variability along with additional measures of sampling variability. Schedule of Advance Data Release Dates--1994 Quarter Manufacturing, Mining, and Wholesale Trade Retail Trade Second 1994 October 12, 1994 Third 1994 December 13, 1994 SOURCE: Quarterly Financial Report for Manufacturing, Mining, and Trade Corporations--QFR-94-2, September 1994. 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 2Q 1Q 2Q 1994 1994(1) 1993(1) Rate of return (after taxes): Cents per dollar of sales ................ 4.9 4.8 2.5 Percent on equity (annual rate) .......... NA NA NA (million dollars) Net Sales.................................. 801,455 786,764 750,458 Income after income taxes ................ 39,524 38,079 18,481 Dividends paid (cash) .................... NA NA NA (1) Revised. TABLE 1. PART B--QUARTERLY FINANCIAL REPORT FOR MANUFACTURING CORPORATIONS Unadjusted 2Q 1Q 2Q 1994 1994(1) 1993(1) Rate of return (after taxes): Cents per dollar of sales ................ 5.7 4.6 3.3 Percent on equity (annual rate) .......... 16.9 13.1 9.8 (million dollars) Net Sales.................................. 820,592 758,648 767,408 Income after income taxes ................ 46,464 35,215 25,222 Dividends paid (cash) .................... 17,190 16,276 16,982 (1) Revised. TABLE 2. PART A--SALES AND PROFITS OF CORPORATIONS ENGAGED IN MANUFACTURING, MINING, AND TRADE--NOT SEASONALLY ADJUSTED Sales 2Q 1Q 2Q Industry Group 1994 1994(1) 1993(1) (million dollars) All manufacturing corporations ............ 820,592 758,648 767,408 Nondurable goods .......................... 399,474 374,299 386,420 Food and tobacco......................... 109,591 105,600 106,102 Textiles ................................ 16,274 14,425 16,290 Apparel(2) .............................. 18,643 16,929 18,618 Paper ................................... 35,144 32,949 33,190 Printing ................................ 38,910 36,759 38,361 Chemicals ............................... 89,861 84,488 82,430 Industrial chemicals and synthetics(3).. 35,251 33,173 31,592 Drugs(3) ............................... 22,089 21,875 19,713 Residual of chemicals(3)................ 32,521 29,440 31,124 Petroleum ............................... 66,029 60,853 69,283 Rubber .................................. 25,023 22,294 22,145 Durable goods ............................. 421,117 384,349 380,989 Stone, clay, and glass .................. 15,134 11,926 13,517 Primary metals .......................... 34,036 30,732 29,566 Iron and steel(3) ...................... 16,447 14,805 13,982 Nonferrous metals(3).................... 17,589 15,927 15,585 Fabricated metals ....................... 36,606 33,784 34,418 Machinery ............................... 85,251 75,958 74,692 Electrical machinery .................... 68,074 62,959 62,481 Transportation Equipment ................ 116,139 108,410 106,713 Motor vehicles and equipment(3) ........ 80,620 73,954 68,129 Aircraft, guided missiles, and parts(3). 30,395 30,186 34,463 Instruments ............................. 30,757 28,752 28,651 Other durable goods ..................... 35,119 31,828 30,951 Lumber and wood products(3) ............ 14,922 13,155 12,659 Furniture and fixtures(3) .............. 11,503 10,412 9,263 Miscellaneous manufacturing(3) ......... 8,694 8,261 9,029 Mining(4) ................................. 11,162 10,681 10,056 Wholesale trade(4) ........................ 207,881 200,823 193,500 Retail trade(4) ........................... NA 193,345 188,702 (1)Revised. (2)Includes leather industry (previously titled "Other Nondurables"). (3)Included in major industry above. (4)Mining and trade data are quarterly results of companies in those divisions drawn into the sample in the fall of 1993 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-94-2, September 1994. 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 Operating Profits* 2Q 1Q 2Q Industry Group 1994 1994(1) 1993(1) (million dollars) All manufacturing corporations ............ 66,077 53,136 49,274 Nondurable goods .......................... 33,609 28,838 29,429 Food and tobacco......................... 9,393 8,462 8,201 Textiles ................................ 1,091 847 1,343 Apparel(2) .............................. 1,068 704 975 Paper ................................... 2,327 2,044 2,076 Printing ................................ 4,185 3,201 3,486 Chemicals ............................... 10,236 8,928 7,999 Industrial chemicals and synthetics(3).. 3,625 2,791 2,238 Drugs(3) ............................... 3,033 3,588 2,791 Residual of chemicals(3)................ 3,578 2,548 2,970 Petroleum ............................... 3,297 3,148 3,644 Rubber .................................. 2,012 1,503 1,706 Durable goods ............................. 32,467 24,298 19,845 Stone, clay, and glass .................. 1,769 415 1,198 Primary metals .......................... 2,013 1,370 1,518 Iron and steel(3) ...................... 1,101 623 885 Nonferrous metals(3).................... 912 747 634 Fabricated metals ....................... 3,023 2,464 2,543 Machinery ............................... 5,261 3,025 843 Electrical machinery .................... 6,878 5,243 4,109 Transportation Equipment ................ 7,612 6,852 4,701 Motor vehicles and equipment(3) ........ 5,236 4,678 2,302 Aircraft, guided missiles, and parts(3). 1,998 1,977 2,114 Instruments ............................. 2,953 2,587 2,561 Other durable goods ..................... 2,959 2,342 2,371 Lumber and wood products(3) ............ 1,380 1,052 1,078 Furniture and fixtures(3) .............. 834 539 572 Miscellaneous manufacturing(3) ......... 745 751 721 Mining(4) ................................. 1,027 816 1,032 Wholesale trade(4) ........................ 4,646 3,631 3,492 Retail trade(4) ........................... NA 7,718 7,158 *Operating profits are profits before nonoperating income and expense items and income taxes. (1)Revised. (2)Includes leather industry (previously titled "Other Nondurables"). (3)Included in major industry above. (4)Mining and trade data are quarterly results of companies in those divisions drawn into the sample in the fall of 1993 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-94-2, September 1994. 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 C--SALES AND PROFITS OF CORPORATIONS ENGAGED IN MANUFACTURING, MINING, AND TRADE--NOT SEASONALLY ADJUSTED After-Tax Profits 2Q 1Q 2Q Industry Group 1994 1994(1) 1993(1) (million dollars) All manufacturing corporations ............ 46,464 35,215 25,222 Nondurable goods .......................... 20,634 18,962 15,864 Food and tobacco ........................ 5,262 5,548 4,829 Textiles ................................ 473 289 596 Apparel(2) .............................. 691 168 577 Paper ................................... 1,035 696 815 Printing ................................ 2,235 1,734 1,637 Chemicals ............................... 7,000 7,567 3,125 Industrial chemicals and synthetics(3).. 2,114 2,099 2,037 Drugs(3) ............................... 2,580 3,753 2,609 Residual of chemicals(3)................ 2,306 1,716 (1,521) Petroleum ............................... 2,624 2,290 3,274 Rubber .................................. 1,314 670 1,012 Durable goods ............................. 25,830 16,254 9,358 Stone, clay, and glass .................. 1,039 (471) 1,458 Primary metals .......................... 1,253 768 955 Iron and steel(3) ...................... 666 442 689 Nonferrous metals(3) ................... 587 327 266 Fabricated metals ....................... 1,863 1,479 1,605 Machinery ............................... 4,509 2,098 (7,060) Electrical machinery .................... 5,065 3,971 4,052 Transportation equipment ................ 7,157 4,620 4,257 Motor vehicles and equipment(3) ........ 5,415 3,185 2,646 Aircraft, guided missiles, and parts(3). 1,510 1,323 1,382 Instruments ............................. 3,053 2,372 2,586 Other durable goods ..................... 1,890 1,415 1,504 Lumber and wood products(3) ............ 1,009 725 749 Furniture and fixtures(3) .............. 491 223 348 Miscellaneous manufacturing(3) ......... 391 468 407 Mining(4) ................................. 617 395 779 Wholesale trade(4) ........................ 2,333 2,167 2,474 Retail trade(4) ........................... NA 2,761 3,661 (1)Revised. (2)Includes leather industry (previously titled "Other Nondurables"). (3)Included in major industry above. (4)Mining and trade data are quarterly results of companies in those divisions drawn into the sample in the fall of 1993 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-94-2, September 1994. 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(1) Industry Group and Year Q1 Q2 Q3 Q4 (million dollars) All manufacturing: 1990 ............................ 692,395 692,610 707,113 717,771 1991 ............................ 676,832 684,840 699,540 699,033 1992 ............................ 703,278 718,384 729,945 737,709 1993 ............................ 743,785 750,458 752,307 768,238 1994 ............................ 786,764 801,455 All nondurable manufacturing: 1990 ............................ 355,357 350,101 363,966 383,126 1991 ............................ 362,269 360,734 366,409 367,046 1992 ............................ 366,344 374,572 378,777 380,099 1993 ............................ 381,595 382,716 379,184 381,386 1994 ............................ 388,181 394,989 All durable manufacturing: 1990 ............................ 337,038 342,509 343,147 334,645 1991 ............................ 314,563 324,106 333,131 331,987 1992 ............................ 336,934 343,812 351,168 357,610 1993 ............................ 362,190 367,742 373,123 386,852 1994 ............................ 398,583 406,466 ------------------------------------------------------------------------- TABLE 3. PART B--QUARTERLY FINANCIAL REPORT FOR MANUFACTURING CORPORATIONS--SEASONALLY ADJUSTED After-Tax Profits(2) Industry Group and Year Q1 Q2 Q3 Q4 (million dollars) All manufacturing: 1990 ............................ 29,635 30,366 27,579 24,072 1991 ............................ 20,423 17,466 15,229 14,487 1992 ............................(41,571) 23,730 25,051 16,159 1993 ............................ 13,914 18,481 22,225 29,194 1994 ............................ 38,079 39,524 All nondurable manufacturing: 1990 ............................ 16,367 18,708 18,852 16,730 1991 ............................ 17,017 14,419 15,205 13,529 1992 ............................ (3,724) 17,585 17,643 15,539 1993 ............................ 13,056 14,394 12,497 16,244 1994 ............................ 19,173 19,037 All durable manufacturing: 1990 ............................ 13,268 11,658 8,727 7,342 1991 ............................ 3,406 3,047 24 958 1992 ............................(37,847) 6,145 7,408 620 1993 ............................ 858 4,087 9,728 12,950 1994 ............................ 18,906 20,487 (1)Revised (2)Last quarter, Census Bureau analysts noticed that the seasonal pattern in the Net Income After Tax data has been changing rather rapidly in recent years. There was concern that the available methods of seasonal adjustment might not be able to reliably estimate the current seasonal pattern. As a consequence, no seasonal adjustments were published for these data last quarter. Now, after further studies, the decision has been made to publish seasonal adjustments obtained from the Census Bureau's enhances version of the X-11-ARIMA program in the concurrent adjustment mode. In this mode, data through the current quarter are used to calculate the current quarter's seasonal adjustment, instead of using an adjustment factor calculated in advance using only data through the last quarter of the preceding year. This change, and others made in the seasonal adjustment program options, have lead to substantial revisions of the seasonal adjustments published for the data after 1990 for the Net Income After Tax series, and more moderate changes to earlier adjustments. Complete sets of the new adjustments are tabled in this publication, as are revised tables for the Net Sales data, which are now also being adjusted concurrently. Further information on the enhanced X-11-ARIMA seasonal adjustment program can be obtained from the Associate Director for Statistical Design, Methodology and Standards, Bureau of the Census, Washington, DC 20233. SOURCE: Quarterly Financial Report for Manufacturing, Mining, and Trade Corporations--QFR-94-2, September 1994. 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.