QUARTERLY FINANCIAL REPORT (QFR) FOR MANUFACTURING, MINING, AND TRADE CORPORATIONS

UNITED STATES BUREAU OF THE CENSUS

Economic and Statistics Administration, U.S. Department of Commerce

ADVANCE DATA ON LARGE RETAILERS` PROFITS FOR THE THIRD QUARTER 1996

January 1997--Released 10 a.m. (EST), Wednesday, January 15, 1997 (CB97-07)
Contact: Ronald H. Lee (301) 763-5435 or Frank Hartman (301) 763-7182.

Notes: Fourth Quarter 1996 advance data are scheduled for release on April 7, 1997.
For order information, see the end of this report.

After-tax profits for retail corporations with assets of $50 million and over averaged 2.0 cents per dollar of sales for the third quarter of 1996, up 0.3 (+/-0.18) cents from the preceding quarter and up 0.4 (+/-0.18) cents from the same quarter in 1995, according to advance data from the Commerce Department`s Bureau of the Census.

For the third quarter of 1996, these large retail corporations reported after-tax profits of $4.8 billion, up $0.9 (+/-0.3) billion from the preceding quarter and up $1.2 (+/-0.2) billion from the same quarter a year ago. The annual rate of after-tax return on stockholders` equity was 12.0 percent, compared to 10.1 percent in the second quarter of 1996 and 9.7 percent in the third quarter of 1995.

Third quarter 1996 sales were $236.8 billion, up $2.0 billion or 0.9 (+/-1.7) percent from last quarter. Third quarter sales compared to the same quarter a year ago were up $15.4 billion or 6.9 (+/-1.8) percent.

These data are based on quarterly financial reports obtained from 547 corporations. The figures in this release are not seasonally adjusted. More detailed information on the retail trade sector for the third quarter will be published in the Quarterly Financial Report for Manufacturing, Mining, and Trade Corporations--Fourth Quarter 1996 which is scheduled for release on April 7, 1997.

EXPLANATORY NOTES:

This quarter`s publication contains data revised due to the reclassification of corporations by industry, and revisions that reflect respondents` corrections of submitted data subsequent to original publication.

The data presented in this report are estimated from a sample survey and therefore are subject to sampling variability as well as nonsampling variability such as response error, nonreporting, and coverage errors. Estimates of sampling variability are presented in the publication. A statement such as "up 2.5 (+/-0.15) cents," appearing in the text, indicates the range (+2.35 to +2.65 cents) in which the actual change is likely to have occurred. The range given for the change is a 90 percent confidence interval that accounts only for sampling variability. If the range had contained zero (0), it would have been uncertain whether there was an increase or decrease; that is, the change would not have been statistically significant. For any comparison cited without a confidence interval, the change is statistically significant. The quarterly publication includes more detailed explanations of confidence intervals and sampling variability, along with additional measures of sampling variability.

TABLE 1. INCOME STATEMENT FOR RETAIL TRADE CORPORATIONS WITH ASSETS OF $50 MILLION AND OVER*

                                                     3Q      2Q       3Q
                                                   1996    1996(1)  1995(1)
                                                      (million dollars)

Net sales, receipts, and operating revenues.... 236,840  234,808  221,486
Less: Depreciation, depletion, and amortization   5,008    4,874    4,601
Less: All other operating costs and expenses... 222,464  220,919  209,142
                                                
  Income (or loss) from operations.............   9,369    9,015    7,743

Net nonoperating income (expense).............. (1,822)  (2,468)  (1,888)

  Income (or loss) before income taxes.........   7,547    6,547    5,855

Less: Provision for current and deferred         
  domestic income taxes........................   2,707    2,597    2,263
                                                 
  Income (or loss) after income taxes..........   4,840    3,949    3,593
                                                 
Cash dividends charged to retained earnings       1,160    1,207    1,084
  in current quarter...........................  
                                                 
  Net income retained in business..............   3,679    2,742    2,508
                                                 
Retained earnings at beginning of quarter...... 101,546   99,223   91,544
Other direct credits (or charges) to             
  retained earnings (net)......................   (671)    (924)     833 
                                                            
Retained earnings at end of quarter............ 104,555  101,042   94,885

*Beginning in the fourth quarter of 1995 retail trade companies with assets of less than $250 million are being sampled on a less than 1:1 ratio. To provide comparability, data for the third quarter of 1995 have been restated to reflect this change.

(1) Revised.

SOURCE: Quarterly Financial Report for Manufacturing, Mining, and Trade Corporations--QFR-96-4.

TABLE 2. INCOME STATEMENT IN RATIO FORMAT FOR RETAIL TRADE CORPORATIONS WITH ASSETS OF $50 MILLION AND OVER*

                                                     3Q     2Q       3Q
                                                   1996   1996(1)  1995(1)
                                                          (cents)

Net sales, receipts, and operating revenues....   100.0   100.0    100.0
Less: Depreciation, depletion, and amortization     2.1     2.1      2.1
Less: All other operating costs and expenses...    93.9    94.1     94.4
                                                   
  Income (or loss) from operations.............     4.0     3.8      3.5
                                                  
Net nonoperating income (expense)..............   (0.8)   (1.1)    (0.9)
                                                  
  Income (or loss) before income taxes.........     3.2     2.8      2.6
                                                  
Less: Provision for current and deferred            
  domestic income taxes........................     1.1     1.1      1.0 
                                                    
  Income (or loss) after income taxes..........     2.0     1.7      1.6

TABLE 3. OPERATING RATIOS FOR RETAIL TRADE CORPORATIONS WITH ASSETS OF $50 MILLION AND OVER*

                                                     3Q      2Q       3Q
                                                   1996    1996(1)  1995(1)
                                                          (percent)

Annual rate of profit on stockholders` equity
  at end of period:
    Before income taxes.........................  18.68   16.67    15.74
    After income taxes..........................  11.98   10.06     9.66

Annual rate of profit on total assets:                                  
Before income taxes.............................   6.17    5.66     5.08
    After income taxes..........................   3.96    3.42     3.12

This report is offered for sale by the Superintendent of Documents, U.S. Government Printing Office, Washington, D.C. 20402. The annual subscription rate is $33, (Foriegn customers, $41.25 on an international money order or by draft on a U.S. bank). Single publication copies copies are $10 and $12.50, respectively and are available at the Bureau of the Census, (301) 763-INFO(4636).

Electronic files are also available on 3.5 inch flexible diskettes from Customer Services (diskettes), Administrative and Customer Services Division, Bureau of the Census, Washington, D.C. 20233 (301) 763-INFO(4636). The annual subscription cost is $84; $66 for the first diskette and $6 for each additional diskette. This report is also available on the day of issue through the Department of Commerce`s on-line Economic Bulletin Board (N-8-1) (202-377-3870).

Questions concerning this report should be directed to Ronald Lee on (301) 763-5435 or Frank Hartman on (301) 763-7182.

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