--US Q1 current production profits -2.3%; Q4 -5.7%
--US Q1 after-tax corporate profit margins at 7.3%; Q4 +7.6%

By Simon Kennedy
Washington, May 25 (BridgeNews) - U.S. after-tax corporate profits fell at an annual rate of 3.1% in the first quarter, not as weak as the 4.3% decline of the prior three months but still proof that slow economic growth is impacting corporate profitability.
* * * Adjusting for inventory valuation and capital depreciation, profits from current production in the first quarter were down 2.3%, something of an improvement from the 5.7% drop recorded in the previous quarter, the Commerce Department reported Friday. Compared to a year ago, profits from current production were down 4.6%.
The drop in profits follows a series of warnings from companies that have suffered as the U.S. economy has slowed. According to the government, GDP grew 1.3% in the first quarter after several years in which annual growth topped 4.0%. A sustained deceleration in GDP could impact the wider economy by forcing firms to cutback on investment and employment.

PROFIT MARGINS
After-tax profit margins at non-financial firms were at 7.3%, down from 7.6% in the fourth quarter.
NET CASH FLOW, OTHER DETAILS
Corporate net cash flow, which can be used to fund capital investment, dropped 1.1% in the first quarter, compared with the 2.0% deceleration of the fourth quarter.