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OTTAWA — Canadian corporations reported $200 billion in operating profit in the third quarter, a 3.8 per cent increase from the previous quarter as gains in the financial industries outpaced those in non financial sectors.
Statistics Canada said Tuesday that operating profit was up $7.4 billion from the second quarter and $9.7 billion higher than the same period a year earlier.
Financial industries led the quarterly growth, with profit rising six per cent to $95.5 billion. Banking and other depository credit institutions posted a $2.7 billion increase as lower provisions for credit losses and higher investment revenues strengthened results. Miscellaneous intermediation added $2.0 billion, while property and casualty insurers saw profit climb $821 million. Those gains were partly offset by a $363 million decline in the portfolio management and miscellaneous investment sector.
Non financial industries recorded a $1.9 billion increase to $104.5 billion in operating profit. Manufacturing sectors posted broad gains, rising $1.4 billion as 10 of 14 industries improved. Motor vehicle and trailer manufacturing led with a $1.1 billion jump tied to increased production and lower costs. Pharmaceutical, chemical, food and beverage manufacturers also reported growth.
Mining and quarrying, excluding oil and gas, delivered the second largest profit gain among non financial industries, up $426 million as rising metal prices boosted revenues. Oil and gas extraction added $390 million on record crude production and exports.
Arts, entertainment, recreation, accommodation and food services sectors saw profit rise $97 million, helped by record domestic tourism over the summer.
Transportation industries moved in the opposite direction, posting a $299 million decline as a flight attendants’ strike caused widespread cancellations. Construction profit fell $277 million as higher input costs, tariffs and supply chain uncertainty weighed on results.
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