August 25, 2011 / 1:17 PM / 7 years ago

CORRECTED-(OFFICIAL)-Canada corporation profits drop 4.9 percent

(Corrects second paragraph to make clear that Statistics Canada now says year-on-year decline in the second quarter of 2009 was 5.3 percent, not the 6.4 percent it had reported)

* Quarterly drop in profits was biggest in two years

* Manufacturing dragged lower by petroleum, coal producers

OTTAWA, Aug 25 (Reuters) - Canadian corporations’ operating profits dropped 4.9 percent in the second quarter of 2011 from the first quarter, the biggest such fall for two years, Statistics Canada said on Thursday.

Operating profits fell to $64.0 billion ($63.4 billion) from $67.3 billion with 14 out of 22 industries reporting lower figures. It was the first drop in a year and the biggest quarter-on-quarter retreat since the 5.3 percent decline recorded in the second quarter of 2009.

In the nonfinancial sector, operating profits decreased 3.8 percent to C$47.3 billion on weaker performance in the manufacturing industry. This was primarily caused by a 24.1 percent drop in profits in the petroleum and coal producers.

In the financial sector, operating profits were down 7.9 percent to C$16.7 billion. Life insurers were down 42.4 percent on higher actuarial liabilities.

On a year-over-year basis, operating profits for all industries were 10.2 percent higher in the second quarter than in the second quarter of 2010.

A table of the results can be found here

$1=$0.99 Canadian Reporting by David Ljunggren; Editing by Theodore d'Afflisio

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