OTTAWA, Ont. — The first quarter proved a strong one for corporate profits overall but transportation and warehousing companies have nothing to cheer about.
Corporate profits increased 6.0% in the first quarter of 2004, fueled by gains in the oil and gas and banking sectors, but transportation and warehousing companies lost ground, as their profits dropped 11.8% to $2.1 billion, data from Statistics Canada reveals.
Further comparing the plight of the transportation and warehousing in the first quarter, non-financial industries enjoyed a 6.4% jump in profits overall, led by oil and gas (+18.2%) and manufacturing companies (+13.5%). Overall, 10 of the 17 non-financial industries showed higher profits in the first quarter.
The drop in transportation and warehousing profits follows two straight quarters of double-digit growth. The decline was led by the transportation carriers (which includes all modes). Their operating profits fell 19.2% to $1.4 billion from an all-time high of $1.8 billion in the fourth quarter. A labour disruption, airfare discounting and higher fuel costs were all cited as factors in the profit slide.
However, first quarter results remained historically strong, bolstered by rising manufacturing shipments.
Have your say
We won't publish or share your data