Canadian corporations earned record high operating profits of $204.5 billion last year, Statistics Canada reported Friday.

The 2004 profit figure was 18.8 per cent higher than 2003's – the strongest profit growth since 2000.

StatsCan said last year's growth was largely due to strength in the first half of the year.

"Revenue and profit growth tailed off by year end, as higher operating costs and the effects of the rising dollar on exports took a toll," the federal agency said in a release.

Almost every major industry group reported higher profits last year. It was rebound time for the country's manufacturers, who saw their operating profits grow more than a third to $49 billion.

Wood and paper manufacturers had their best year since 2000. Soaring prices for oil and metals helped resource companies record big profit growth. Mining companies saw their profits more than triple.

Retailers also had a good year, with furniture and home furnishings, clothing and department stores showing the biggest profit increases.

Banks, insurance companies,and other financial institutions also had a banner 2004, with record high operating profits of $21.4 billion.

The auto industry was one of the few to report lower profits. Motor vehicle and parts manufacturers saw operating profits drop almost 16 per cent to $2.9 billion.

StatsCan reported that the number of new motor vehicles sold in Canada last year fell to the lowest level since 1999.