Operating profits for Canadian corporations drop to lowest level since 2010

OTTAWA – Statistics Canada says operating profits for Canadian corporations in the second quarter of this calendar year were down 3.4 per cent from the previous quarter, dropping to their lowest levels since 2010.

The agency attributed the decrease to a $3.2-billion decline in profits for insurance carriers in the financial sector, mainly because of the damage caused by the Alberta wildfire in Fort McMurray in May.

From the first quarter to the second quarter, disaster claims filed with property and casualty insurers increased by $1.4 billion.

Overall operating profits in financial industries fell 12.1 per cent from $25.1 billion in the first quarter to $22.1 billion in the second quarter.

In the non-financial sector, operating profits edged up 0.9 per cent to $50.8 billion in the second quarter on stable operating revenues.

Year-over-year, overall operating profits for Canadian corporations fell 15.3 per cent compared with the second quarter of 2015.