Canadian corporations earned $107.1 billion in operating profit in the second quarter, up $5.3 billion or 5.2 per cent from the first quarter, but 0.4 per cent lower that the second quarter of 2018, says Statistics Canada in data it released on Friday.
“In the non-financial industries, operating profit increased $1.6 billion (+2.2 per cent) from the first quarter to $75.7 billion. Overall, operating profit was up in 13 of 17 non-financial industries,” said the federal agency.
“Compared with the second quarter of 2018, operating profit for Canadian non-financial enterprises increased 2.8 per cent. Operating profits in the oil and gas extraction and support activities industry were up $325 million (+20.7 per cent) in the second quarter, reaching $1.9 billion. This increase was attributable to a rise in oil prices.”
It also said operating profit for the manufacturing sector rose $116 million (+0.8 per cent) from the first quarter to $15.3 billion, as five of 13 industries reported increases. Operating profit for petroleum and coal products manufacturing led the increase, rising $702 million (+29.6 per cent) from the first quarter due to higher oil prices.
“Operating profit in the financial industries increased by $3.7 billion (+13.4 per cent), up from $27.7 billion in the first quarter to $31.4 billion in the second quarter,” added StatsCan.
“Operating profit for depository credit intermediation rose $2.6 billion (+21.0 per cent), to $15.1 billion. Banking and other depository credit intermediation led the increase in operating profit, up $2.5 billion (+22.3 per cent) to $13.9 billion. This is attributable to a decrease in expenses relating to a non-recurrent payment to external business partners that occurred in the first quarter.”
The federal agency said operating profit for insurance carriers and related activities rose $427 million (+25.4 per cent), from an operating loss of $1.7 billion in the first quarter of 2019 to an operating loss of $1.3 billion in the second quarter. Property and casualty insurance carriers recorded an increase of $52 million (+5.2 per cent) in operating profit due to higher insurance revenue, despite the higher insurance claims expense in the quarter as a result of the April and May floods in Eastern Canada, it added.