Feb 25, 2021
In the fourth quarter, Canadian corporations reported a 7.9% increase in net income before taxes to $82.5 billion, a growth of $6.1 billion. Operating revenues rose 1.8% to $1,080.4 billion during the quarter.
Net income before taxes in the non-financial sector increases
Net income before taxes in the non-financial sector increased by 12.8% (or $6.0 billion) to $53.2 billion in the fourth quarter.
Net income before taxes in oil and gas extraction and support activities increased by $3.7 billion (+56.5%) in the fourth quarter. This increase is attributable to higher oil prices and volumes for the quarter. Nonetheless, the industry reported losses for a fourth consecutive quarter, recording a loss of $2.9 billion in the fourth quarter. This was an improvement from the loss of $6.6 billion in the third quarter.
Manufacturing net income before taxes edges down
Net income before taxes in the manufacturing industry edged down by $120 million (-0.9%), reaching $12.6 billion in the fourth quarter.
Petroleum and coal manufacturing led the decrease in net income before taxes, down $870 (-187.1%) million as expenses related to asset revaluations increased in the fourth quarter.
Net income before taxes in motor vehicle and trailer manufacturing decreased by $536 million (-45.8%) as revenues were down this quarter. Exports of motor vehicles and parts decreased by 9.9% in the fourth quarter.
Mostly offsetting these decreases in net income before taxes for the manufacturing industry was wood and paper manufacturing, which rose by $711 million (+32.4%), on increased prices and robust demand in the panels segment of the industry.
Retail trade sector net income before taxes decreases
Net income before taxes in the retail trade sector decreased (-17.8%, or -$776 million) to $3.6 billion.
The food and beverage stores industry led the decrease in net income before taxes, down $2.6 billion (-187.8%) on lower revenues.
Motor vehicles and parts dealers recorded an increase in net income before taxes (+$755 million, or +126.9%).
Financial sector net income before taxes edges up
Net income before taxes for financial corporations edged up 0.1% (+$37 million) to $29.4 billion in the fourth quarter.
Life, health and medical insurance carriers led the increase, up $873 million (+56.2%) because of higher premium revenues.
The banking and depository credit intermediation industry saw continued growth from the prior quarter, with net income before taxes reaching $9.5 billion in the fourth quarter—a rise of 6.2% (+$553 million).
Mostly offsetting those increases in net income before taxes for the financial sector were the property and casualty insurance carriers that decreased by $1.4 billion (-50.7%) in the fourth quarter.
Source: Statistics Canada, www150.statcan.gc.ca/n1/daily-quotidien/210224/dq210224a-eng.htm