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BEA Corporate Profits release. Especially interesting is this: "Domestic profits of financial corporations increased $97.0 billion in the third quarter, compared with an increase of $28.5 billion in the second. Domestic profits of nonfinancial corporations increased $12.9 billion in the third quarter, compared with an increase of $29.8 billion in the second." ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Profits from current production (corporate profits with inventory valuation and capital consumption adjustments) increased $130.0 billion in the third quarter, compared with an increase of $43.8 billion in the second quarter. Current-production cash flow (net cash flow with inventory valuation adjustment) -- the internal funds available to corporations for investment -- increased $41.6 billion in the third quarter, in contrast to a decrease of $30.5 billion in the second. Taxes on corporate income increased $6.7 billion in the third quarter, compared with an increase of $35.6 billion in the second. Profits after tax with inventory valuation and capital consumption adjustments increased $123.3 billion in the third quarter, compared with an increase of $8.2 billion in the second. Dividends decreased $12.7 billion compared with a decrease of $62.1 billion; current- production undistributed profits increased $136.1 billion, compared with an increase of $70.3 billion. Domestic profits of financial corporations increased $97.0 billion in the third quarter, compared with an increase of $28.5 billion in the second. Domestic profits of nonfinancial corporations increased $12.9 billion in the third quarter, compared with an increase of $29.8 billion in the second. In the third quarter, real gross value added of nonfinancial corporations increased, and profits per unit of real value added increased. The increase in unit profits reflected a decrease in unit nonlabor costs that more than offset a decrease in unit prices; unit labor costs were unchanged. The rest-of-the-world component of profits increased $20.1 billion in the third quarter, in contrast to a decrease of $14.6 billion in the second. This measure is calculated as (1) receipts by U.S. residents of earnings from their foreign affiliates plus dividends received by U.S. residents from unaffiliated foreign corporations minus (2) payments by U.S. affiliates of earnings to their foreign parents plus dividends paid by U.S. corporations to unaffiliated foreign residents. The third-quarter increase was accounted for by an increase in receipts and a slight decrease in payments. Profits before tax increased $156.2 billion in the third quarter, compared with an increase of $90.6 billion in the second. The before-tax measure of profits does not reflect, as does profits from current production, the capital consumption and inventory valuation adjustments. These adjustments convert depreciation of fixed assets and inventory withdrawals reported on a tax-return, historical-cost basis to the current-cost measures used in the national income and product accounts. The capital consumption adjustment increased $9.2 billion in the third quarter (from -$128.6 billion to -$119.4 billion), compared with an increase of $16.3 billion in the second. The inventory valuation adjustment decreased $35.5 billion (from $18.1 billion to -$17.4 billion), compared with a decrease of $63.0 billion. ________________________________________________ Send list submissions to: [email protected] Set your options at: http://lists.econ.utah.edu/mailman/options/marxism/archive%40mail-archive.com
