30 November 2001, 16:53 US Q3 corporate profits down 7.1 pct vs 1.7 fall in Q2
WASHINGTON (AFX) - After-tax corporate profits fell 7.1 pct in the
third quarter, the Commerce Department said.
This is the fourth straight quarterly decline in corporate profits
marking the longest consecutive period of profit declines since the
fourth quarter of 1997 through to the first quarter of 1999.
Several special factors related to Sept 11 terrorist attacks
affected the deeper decline in corporate profits, the department said.
Profits were reduced by insurance payments associated to the Sept
11 attacks while airline profits were boosted by the federal subsidy
for the industry passed by Congress.
In the second quarter, corporate profits rose 1.7 pct, unrevised
from the previous estimate.
Pre-tax operating profits fell 7.9 pct in the third quarter,
compared with a 2.3 pct fall in the second quarter.
Net cash flow rose 1.4 pct in the third quarter, compared with a
0.7 pct fall in the second quarter.
Corporate profits with inventory valuation and capital consumption
adjustments fell 8.3 pct in the third quarter after a 3.8 pct fall in
the second quarter.
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