Manufacturers’ Earnings Slip in Second Quarter
WASHINGTON — Manufacturing firms profits’ after taxes dipped to an average of 5.8% of sales between April and June, down from 6.3% in the first quarter, the Commerce Department said Monday.
After-tax earnings, which were adjusted for seasonal variations, totaled $37.4 billion, down from the first quarter’s $39.4 billion.
Manufacturers had unusually strong profits in the first quarter, and seasonal factors in the second quarter of the year tend to lower profits, economists said.
Manufacturing firms have enjoyed increased demand both in domestics markets and for exported goods as a result of the cheaper dollar.
Sales improved in the quarter, totaling $641.1 billion, compared to $629.1 billion in the first quarter.
The April-June performance was up from a year ago. In the second quarter last year, manufacturers earned 4.9 cents for each dollar of sales.
Before seasonal adjustment, profits totaled $41.5 billion between April and June, compared to $36.9 billion in the first quarter and $31.5 billion in the second quarter of 1987.
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