Canadian business profits rise for first time in year
Last Updated: Wednesday, November 25, 2009 | 03:03 PM EST
Financial Post
OTTAWA -- Earnings by Canadian companies rose in the third quarter of 2009 after three straight quarterly declines, Statistics Canada said Wednesday.
Operating profits were up 7.9% to $54.1-billion during the July-to-September period, the federal agency said, with gains recorded in 18 of 22 industries.
The non-financial sector saw profits increase 10.4% from the second quarter to $41.7-billion, while financial industries earnings edged up 0.3% to $12.4-billion.
Profits for oil and gas, and petroleum and coal industries rose 20.4% to $5.9-billion in the third quarter — the first gain in four quarters, and attributed to higher oil prices, the agency said.
Manufacturers posted profits of $9.4-billion, up 28.6% from the previous quarter, even though vehicle and auto-parts makers reported an operating loss of $100-million.
“However, this compares with an operating loss of $1.0-billion in the second quarter of 2009 and a loss of $1.7-billion in the first quarter of 2009,” Statistics Canada said. “The results in the third quarter are partially attributable to government incentives in the United States, which spurred demand for Canadian automobile and parts exports to that country.”
Transportation and warehousing companies earned $2.8-billion, 14.8% from the second quarter.
Meanwhile, the relatively flat profits in the financial sector in the third quarter came after three consecutive quarterly declines.
“Property and casualty insurance carriers posted significant declines this quarter as bad weather resulted in higher claims,” the agency said. “Offsetting some of these declines were gains in banking and other depository credit intermediaries.
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