[U.S. Department of Commerce Seal]

UNITED STATES BUREAU OF THE CENSUS

Economic and Statistics Administration, U.S. Department of Commerce



ADVANCE DATA FROM THE QUARTERLY FINANCIAL REPORT FOR MANUFACTURING, MINING, AND WHOLESALE TRADE CORPORATIONS
SECOND QUARTER 2002

SEPTEMBER 2002-------------------Released 10 a.m. (EDT), Friday, September 13, 2002 (CB02-118)
Contact: Ronald B. Horton (301) 763-3343 or Frank Hartman (301) 763-3379.

Availability | Order & Release | QFR Program |



NOTE: Effective fourth quarter 2000, data in this release are presented on the North American Industry Classification System (NAICS) basis. Data prior to fourth quarter 2000 are presented on the Standard Industrial Classification (SIC) system basis. Comparison of NAICS data to SIC data in this release (Table 3) are useful only for trend analysis. For additional information on QFR publication visit our website at http://www.census.gov/csd/qfr/.


CHART 1:
[CHART 1: Manufacturing After-Tax Profits]
CHART 2:
[Manufacturing Profits Per Dollar of Sales]

Seasonally Adjusted After-Tax Profits and Sales

All Manufacturing Corporations:
Second quarter 2002 manufacturing corporations' seasonally adjusted after-tax profits rose to $39.5 billion, up $13.6 (+\-1.3) billion from the $25.9 billion recorded in first quarter 2002, the Commerce Department's Census Bureau reported. Year over year profits were up $23.2 (+\-1.8) billion from the $16.3 billion recorded in second quarter 2001. Durable goods manufacturers posted their first quarterly after-tax profits after five consecutive quarterly losses.

Second quarter 2002 seasonally adjusted manufacturing sales at $1,043.9 billion, were up $11.4 (+\-6.8) billion from first quarter 2002, but down $49.6 (+\-7.2) billion from the year before.

Profits per dollar of sales for second quarter 2002 were 3.8 cents, up from 2.5 cents in the first quarter 2002, and more than double the 1.5 cents a year ago.

Nondurable Goods Manufacturers:
Nondurable goods manufacturers' second quarter 2002 after-tax profits were $30.2 billion, up from the $26.7 billion in the previous quarter, but down $4.1 (+\-0.6) billion from the second quarter 2001. Sales were $475.9 billion, with profits averaging 6.3 cents per dollar of sales, up 0.6 (+\-0.1) cents from the previous quarter, but down 0.5 (+\-0.1) cents from the second quarter 2001.

Durable Goods Manufacturers:
Durable goods manufacturers recorded second quarter 2002 profits of $9.3 billion, their first gain since the $18.9 billion posted in the fourth quarter 2000. Sales for the quarter were $568.0 billion, with profits averaging 1.6 cents per dollar of sales, compared to losses of 0.1 cents in the first quarter 2002 and 3.1 cents a year ago.

Unadjusted After-Tax Profits and Sales

All Manufacturing Corporations:
Manufacturing corporations' unadjusted after-tax profits for second quarter 2002 were up $23.3 (+\-1.8) billion to $47.4 billion from the second quarter a year ago, largely due to improved operating cost controls, lower nonrecurring charges, and restated financial data. Sales at $1,067.1 billion were down $49.5 (+\-7.2) billion from the same quarter a year ago. Profits averaged 4.4 cents per dollar of sales compared to 2.2 cents a year earlier.

Nondurable Goods Manufacturers:
Nondurable goods manufacturers' after-tax profits were down $4.1 (+\-0.6) billion from the $36.3 billion recorded in the second quarter 2001. A decline of $7.1(+\-0.1) billion in petroleum and coal products resulting from lower operating profits and equity income was partially offset by increases of $1.3 (+\-0.3) billion in food products and $1.3 (+\-0.1) billion in beverage and tobacco products due to lower nonrecurring charges and higher operating income respectively.

Second quarter 2002 sales of $484.9 billion, were down $31.1 (+\-4.9) billion from the year before. Profits averaged 6.6 cents per dollar of sales compared to 7.0 cents a year ago.

When compared to first quarter 2002 after-tax profit of $26.1 billion, nondurable goods manufacturers' after-tax profits were up $6.1 (+\-0.6) billion with beverage and tobacco up $1.8 (+\-0.1) billion, and petroleum up $1.4 (+\-0.1) billion.

Durable Goods Manufacturers:
Durable goods manufacturers posted an after-tax profit of $15.2 billion in the second quarter 2002, compared to a loss of $12.2 billion a year earlier. The turnaround was due to both lower operating costs and lower nonrecurring charges.

Most durable goods manufacturing categories posted after-tax profits this quarter. Transportation equipment was up $7.1 billion; electrical equipment, appliances, and components, $5.1 billion; fabricated metal products, $2.8 billion; and miscellaneous manufacturing, $2.0 billion. Computer and electronic products lost $4.2 billion, a smaller loss than the $7.3 billion in the previous quarter.

Second quarter 2002 sales of durable manufacturers, at $582.2 billion, were down $18.4 (+\-5.8) billion or 3.1 (+\-1.0%) percent from a year earlier. Profits for the current quarter averaged 2.6 cents per dollar of sales.

When compared to first quarter 2002 after-tax profits of $0.4 billion, durable manufacturers' after-tax profits rose $14.9 (+\-1.1) billion in the second quarter 2002, of which $5.7 (+\-0.2) billion came from transportation equipment, and $3.2 (+\-0.7) billion from computer and electronic products. This improvement was due to better operating cost containment.

Mining Corporations

Second quarter 2002 unadjusted after-tax profits of mining corporations with assets of $50 million and over were reported at $1.6 billion, compared to a profit of $5.5 billion same quarter a year earlier. Sales for these corporations in second quarter 2002 were $21.8 billion, down $8.8 (+\-0.6) billion from the same quarter a year ago. After-tax profit per dollar of sales averaged 7.2 cents compared to 18.1 cents in second quarter 2001.

Wholesale Trade Corporations

Second quarter 2002 unadjusted after-tax profits of wholesale corporations with assets of $50 million and over were $5.6 billion, up $2.5 (+\-0.2) billion from the second quarter 2001. Sales for these wholesalers were $308.1 billion, down $4.6 (+\-4.1) billion from the same quarter a year ago. After-tax profits per dollar of sales averaged 1.8 cents compared to 1.0 cents in the second quarter 2001.

These advance data, based on quarterly financial reports from about 8,200 corporations, were released today from the Quarterly Financial Report for Manufacturing, Mining, and Trade Corporations- Second quarter 2002 (QFR-02-2). The publication includes statements of income and retained earnings, balance sheets, and related financial and operating ratios. The aggregated data are classified by industry and asset size. The publication becomes available for sale approximately two weeks from the date of this release from the Superintendent of Documents, P.O. Box 371954, Pittsburgh, PA 15250-7954 (202-512-1800). The cost for an annual subscription is $39 domestic and $48.75 foreign. Remittances from foreign countries must be by international money order or by draft on a U.S. bank. Files are also available on 3.5 inch flexible diskettes from U.S. Department of Commerce, Census Bureau (MS1921), P.O. Box 277943, Atlanta, GA 30384-7943 (301-763-4100). The annual subscription cost is $80. Third quarter 2002 advance data are scheduled for release on December 13, 2002.

EXPLANATORY NOTES:

The data presented in this report are estimated from a sample survey and therefore are subject to sampling variability as well as nonsampling variability such as response error, nonreporting, and coverage errors. Estimates of sampling variability are presented in the publication. A statement such as "up 2.5 (+\-0.15) cents," appearing in the text, indicates the range (+2.35 to +2.65 cents) in which the actual change is likely to have occurred. The range given for the change is a 90 percent confidence interval that accounts only for sampling variability. If the range had contained zero (0), it would have been uncertain whether there was an increase or decrease; that is, the change would not have been statistically significant. For any comparison cited without a confidence interval, the change is statistically significant. The quarterly publication includes more detailed explanations of confidence intervals and sampling variability, along with additional measures of sampling variability.


AVAILABILITY:

The complete report, Quarterly Financial Report for Manufacturing, Mining and Trade Corporations, is available for download, under "Products: Publication", at <http://www.census.gov/csd/qfr/>.

This press release is available in page image format (.pdf). This press release is available on the day of issue on the Internet (http://www.census.gov/csd/www/qfr.html).

Questions regarding this report (or program) should be directed to Ronald B. Horton (301) 763-3343 or Frank Hartman (301) 763-3379.



TABLE 1. PART A--ALL MANUFACTURING CORPORATIONS

					        Seasonally Adjusted	


                                             2Q        1Q        2Q    

                                             2002      2002(1)   2001(1) 

Rate of return (after taxes):

 Cents per dollar of sales ................     3.8       2.5       1.5

 Percent on equity (annual rate) ..........      NA        NA        NA    



                                                   (million dollars) 

Sales ....................................1,043,904 1,032,465 1,093,468

 Income after income taxes ................  39,532    25,886    16,338

 Dividends paid (cash) ....................      NA        NA        NA






(1)Some of the data in this table have been revised since first published.

SOURCE: Quarterly Financial Report for Manufacturing, Mining, and Trade Corporations--QFR-02-2, September 2002. U.S. Census Bureau, September 2002.


TABLE 1. PART B--ALL MANUFACTURING CORPORATIONS



 						   Unadjusted	

                                                       

                                             2Q        1Q        2Q    

                                             2002      2002(1)   2001(1) 

Rate of return (after taxes):

 Cents per dollar of sales ................     4.4      2.6       2.2

 Percent on equity (annual rate) ..........    10.5      5.9       5.2    

                                                  

                                                   (million dollars) 

Sales ....................................1,067,079 1,001,357 1,116,597

 Income after income taxes ................  47,377    26,467    24,030

 Dividends paid (cash) ....................  24,435    22,138    25,924



(1)Some of the data in this table have been revised since first published.

SOURCE: Quarterly Financial Report for Manufacturing, Mining, and Trade Corporations--QFR-02-2, September 2002. U.S. Census Bureau, September 2002.


TABLE 2. PART A--MANUFACTURING, MINING, AND TRADE CORPORATIONS UNADJUSTED SALES



                                                       Sales

                                                        

                                              2Q        1Q        2Q 

                Industry Group                2002      2002(1)   2001(1)    

                                                   (million dollars)

All manufacturing corporations(2)..........1,067,079 1,001,357 1,116,597



All nondurable goods.......................  484,851   450,974   515,964

  Food.....................................   76,513    76,281    82,954

  Beverage and tobbaco products............   36,993    32,860    37,997

  Textiles mills and textile product mills.   12,719    11,515    12,525 

  Apparel and leather products.............   21,390    21,436    22,454

  Paper ...................................   38,254    37,598    42,526

  Printing and related support activities..   16,498    16,322    17,386

  Petroleum and coal products..............  114,672    98,057   128,750

  Chemicals ...............................  135,527   127,269   137,849

   Basic chemicals, resins, and               

    synthetics(3)..........................   39,034    35,687    43,178

   Pharmaceuticals and medicines(3)........   57,273    55,920    55,222

   All other chemicals(3)..................   39,221    35,662    39,449

  Plastics and rubber products.............   32,285    29,635    33,523

                                                                        

All durable manufacturing..................  582,229   550,384   600,633

  Wood products............................   16,533    14,867    15,442

  Nonmetallic mineral products.............   22,459    18,850    23,513

  Primary metals...........................   34,950    32,954    37,427 

   Iron, steel, and ferroalloys(3).........   14,896    13,371    15,258

   Nonferrous metals(3)....................   14,334    14,167    16,723

   Foundries(3)............................    5,720     5,417     5,446

  Fabricated metal products................   50,887    47,054    50,712

  Machinery ...............................   67,655    60,325    71,092

  Computer and electronic products.........  110,088   111,537   129,629

   Computer and peripheral equipment(3)....   35,727    36,425    39,082

   Communications equipment(3).............   21,751    22,099    31,758

   All other electronic products(3)........   52,610    53,012    58,790

  Electrical equipment, appliances and

   components..............................   46,255    44,219    46,818

  Transportation equipment ................  194,195   181,681   188,200

   Motor vehicles and parts(3).............  144,453   133,507   135,101

   Aerospace products and parts(3).........   40,942    39,875    43,263

  Furniture and related products...........   14,403    14,155    14,757

  Miscellaneous manufacturing..............   24,804    24,742    23,044



All mining(2)..............................   21,779    18,257    30,551

All wholesale trade(2).....................  308,141   290,588   312,695

All retail trade(2)........................       NA   338,363   331,936



(1)Revised
(2)Mining and trade data are the quarterly results of companies in those divisions with assets over $50 million; whereas, data for manufacturing corporations represent the quarterly results of companies with assets over $250,000.
(3)Included in major industry above.

SOURCE: Quarterly Financial Report for Manufacturing, Mining, and Trade Corporations--QFR-02-2, September 2002. U.S. Census Bureau, September 2002.


TABLE 2. PART B--MANUFACTURING, MINING, AND TRADE CORPORATIONS UNADJUSTED OPERATING PROFITS



 

                                                   Operating Profits*

                                               2Q       1Q        2Q

                Industry Group                 2002     2002(1)   2001(1)   

                                                   (million dollars)

All manufacturing corporations(2)..........   70,797    46,955    59,620



All nondurable goods.......................   42,505    33,298    46,052

  Food.....................................    5,774     5,255     5,661

  Beverage and tobbaco products............    7,881     5,819     6,262

  Textiles mills and textile product mills.      893       488       565 

  Apparel and leather products.............    1,338     1,454     1,013

  Paper ...................................    2,297     1,945     2,808

  Printing and related support activities..    1,225       772       918

  Petroleum and coal products..............    5,023     2,531    13,341

  Chemicals ...............................   15,420    13,193    13,823

   Basic chemicals, resins, and               

    synthetics(3)..........................    2,083     1,479       997 

   Pharmaceuticals and medicines(3)........    9,411     8,319     8,992

   All other chemicals(3)..................    3,927     3,394     3,833

  Plastics and rubber products.............    2,655     1,842     1,661

                                                                        

All durable manufacturing..................   28,292    13,656    13,568

  Wood products............................      906       471       932

  Nonmetallic mineral products.............    2,089       527     2,238

  Primary metals...........................    1,141       359       990

   Iron, steel, and ferroalloys(3).........      118      (284)     (131)

   Nonferrous metals(3)....................      618       455       793

   Foundries(3)............................      405       188       328

  Fabricated metal products................    4,341     3,210     3,561

  Machinery ...............................    4,271     2,299     4,282

  Computer and electronic products.........   (1,270)   (4,551)   (9,247)

   Computer and peripheral equipment(3)....     (205)     (628)     (343)

   Communications equipment(3).............   (1,390)   (4,507)   (6,991)

   All other electronic products(3)........      326       584    (1,913)

  Electrical equipment, appliances and

   components..............................    5,393     4,926     4,624

  Transportation equipment ................    7,788     3,115     3,282

   Motor vehicles and parts(3).............    3,355      (549)   (1,586)

   Aerospace products and parts(3).........    3,539     3,190     3,921

  Furniture and related products...........      963       909       920

  Miscellaneous manufacturing..............    2,669     2,391     1,987



All mining(2)..............................    2,385     1,205     6,479

All wholesale trade(2).....................    7,981     7,043     6,773

All retail trade(2)........................       NA    15,781    13,276



*Operating profits are profits before nonoperating income and expense items and income taxes.
(1)Revised.
(2)Mining and trade data are the quarterly results of companies in those divisions with assets over $50 million; whereas, data for manufacturing corporations represent the quarterly results of companies with assets over $250,000.
(3)Included in major industry above.

SOURCE: Quarterly Financial Report for Manufacturing, Mining, and Trade Corporations--QFR-02-2, September 2002. U.S. Census Bureau, September 2002.


TABLE 2. PART C--MANUFACTURING, MINING, AND TRADE CORPORATIONS UNADJUSTED AFTER-TAX PROFITS



 

                                                  After-Tax Profits

                                              2Q        1Q        2Q 

                Industry Group                2002      2002(1)   2001(1)   

                                                   (million dollars)

All manufacturing corporations(2)..........   47,377    26,467    24,030 



All nondurable goods.......................   32,168    26,108    36,264

  Food.....................................    3,770     3,152     2,489

  Beverage and tobbaco products............    5,752     3,952     4,492

  Textiles mills and textile product mills.      458        25        93 

  Apparel and leather products.............      979     1,056     1,431

  Paper ...................................    1,052       641       854

  Printing and related support activities..      761       421       422

  Petroleum and coal products..............    5,919     4,500    13,066

  Chemicals ...............................   11,897    11,677    12,790

   Basic chemicals, resins, and               

    synthetics(3)..........................    1,271       140       (97)

   Pharmaceuticals and medicines(3)........    7,553     9,646    11,542

   All other chemicals(3)..................    3,072     1,891     1,346

  Plastics and rubber products.............    1,579       685       627 

                                                                        

All durable manufacturing..................   15,209       359   (12,234)

  Wood products............................      628       235       553 

  Nonmetallic mineral products.............    1,187      (219)   (3,382)

  Primary metals...........................      424      (140)     (778)

   Iron, steel, and ferroalloys(3).........     (199)     (508)   (1,723)

   Nonferrous metals(3)....................      329       296       817

   Foundries(3)............................      294        72       128

  Fabricated metal products................    2,788     1,580     2,214

  Machinery ...............................     (369)   (2,280)    2,805

  Computer and electronic products.........   (4,173)   (7,377)  (21,671)

   Computer and peripheral equipment(3)....      858       906       516

   Communications equipment(3).............   (4,436)   (7,349)  (15,534)

   All other electronic products(3)........     (595)     (934)   (6,654)

  Electrical equipment, appliances and

   components..............................    5,054     4,644     4,173

  Transportation equipment ................    7,145     1,431     2,210

   Motor vehicles and parts(3).............    3,899      (935)     (509)

   Aerospace products and parts(3).........    2,683     2,142     2,151

  Furniture and related products...........      570       470       466

  Miscellaneous manufacturing..............    1,956     2,016     1,177



All mining(2)..............................    1,565       940     5,539

All wholesale trade(2).....................    5,637     3,456     3,091

All retail trade(2)........................       NA     7,093     5,308



(1)Revised.
(2)Mining and trade data are the quarterly results of companies in those divisions with assets over $50 million; whereas, data for manufacturing corporations represent the quarterly results of companies with assets over $250,000.
(3)Included in major industry above.

SOURCE: Quarterly Financial Report for Manufacturing, Mining, and Trade Corporations--QFR-02-2, September 2002. U.S. Census Bureau, September 2002.


TABLE 3. PART A--MANUFACTURING CORPORATIONS SEASONALLY ADJUSTED SALES



 

 

                                                  Sales(1)

         Industry Group and Year        Q1       Q2        Q3       Q4

                                              (million dollars)

All manufacturing:

    1994 ..........................  784,467   803,054   825,309   841,732

    1995 ..........................  871,260   872,776   883,563   899,785

    1996 ..........................  914,209   932,612   948,299   961,423

    1997 ..........................  965,717   972,312   986,670   995,443

    1998 ..........................  989,577   981,739   986,058   993,795

    1999 ..........................1,002,392 1,026,791 1,048,662 1,071,278

    2000 ..........................1,119,517 1,128,077 1,146,872 1,119,559

    2001 ..........................1,114,975 1,093,468 1,063,737 1,027,559

    2002 ..........................1,032,465 1,043,904

All nondurable manufacturing:

    1994 ..........................  387,240   394,758   405,709   409,997

    1995 ..........................  425,597   427,666   430,819   436,009

    1996 ..........................  442,145   452,357   457,668   463,201

    1997 ..........................  463,147   456,423   461,161   463,900

    1998 ..........................  452,260   445,926   443,342   440,366

    1999 ..........................  445,508   452,796   460,645   476,027

    2000 ..........................  507,027   514,837   526,990   504,603

    2001 ..........................  508,233   506,407   489,377   472,550

    2002 ..........................  467,551   475,908

All durable manufacturing:

    1994 ..........................  397,227   408,296   419,600   431,735

    1995 ..........................  445,663   445,110   452,744   463,776

    1996...........................  472,064   480,255   490,631   498,222

    1997 ..........................  502,570   515,889   525,509   531,543

    1998 ..........................  537,317   535,813   542,716   553,429

    1999 ..........................  556,884   573,995   588,017   595,251

    2000 ..........................  612,490   613,240   619,882   614,956

    2001 ..........................  606,742   587,061   574,360   555,009

    2002 ..........................  564,914   567,996





(1)Revised.

SOURCE: Quarterly Financial Report for Manufacturing, Mining, and Trade Corporations--QFR-02-2, September 2002. U.S. Census Bureau, September 2002.


TABLE 3. PART B--MANUFACTURING CORPORATIONS SEASONALLY ADJUSTED AFTER-TAX PROFITS



 

                                            After-Tax Profits(1)

                                              

         Industry Group and Year         Q1       Q2        Q3       Q4

                                               (million dollars)

All manufacturing:

    1994 ..........................   36,424    41,077    45,481    52,097

    1995 ..........................   52,757    51,870    49,451    44,244

    1996 ..........................   51,142    53,862    61,350    58,777

    1997 ..........................   60,609    61,746    62,031    60,412

    1998 ..........................   74,455    49,088    61,237    49,940

    1999 ..........................   59,526    63,452    67,143    67,921

    2000 ..........................   76,850    71,112    74,461    47,977

    2001 ..........................     (656)   16,338     9,342     8,622

    2002 ..........................   25,886    39,532

All nondurable manufacturing:

    1994 ..........................   18,997    19,819    22,432    26,569

    1995 ..........................   25,878    28,194    27,575    22,257

    1996 ..........................   28,038    28,311    32,097    30,462

    1997 ..........................   33,413    30,686    30,471    28,714

    1998 ..........................   29,787    28,608    30,674    17,629

    1999 ..........................   26,575    28,992    31,179    30,733

    2000 ..........................   37,696    38,743    36,845    29,043

    2001 ..........................   31,960    34,283    26,721    19,163

    2002 ..........................   26,698    30,189

All durable manufacturing:

    1994 ..........................   17,427    21,258    23,049    25,528

    1995 ..........................   26,879    23,676    21,876    21,987

    1996 ..........................   23,104    25,551    29,253    28,315

    1997 ..........................   27,196    31,060    31,560    31,698

    1998 ..........................   44,668    20,480    30,563    32,311

    1999 ..........................   32,951    34,460    35,964    37,188

    2000 ..........................   39,154    32,369    37,616    18,934

    2001 ..........................  (32,616)  (17,945)  (17,379)  (10,541)

    2002 ..........................     (812)    9,343





(1)Revised.

SOURCE: Quarterly Financial Report for Manufacturing, Mining, and Trade Corporations--QFR-02-2, September 2002. U.S. Census Bureau, September 2002.



ORDER & RELEASE INFORMATION

The publication becomes available for sale approximately two weeks from the date of this release from the Superintendent of Documents, P.O. Box 371954, Pittsburgh, PA 15250-7954 (202-512-1800). The annual subscription rate is $34, (foreign customers, $42.50 on an international money order or by draft on a U.S. bank). Single publication copies are $10 and $12.50, respectively and are available at the Bureau of the Census, (301) 457-4100.

Schedule of Advance Data Release Dates--2002
[Economic Indicator Release Schedule]



Quarter         Manufacturing, Mining, and Wholesale Trade        Retail Trade

                            

             



Second 2002           			                          October 16, 2002

Third  2002            December 13, 2002        



Conversion to the North American Industry Classification System

Effective fourth quarter 2000, data in this release are presented on the North American Industry Classification System (NAICS). Data prior to fourth quarter 2000 are presented on the Standard Industrial Classification (SIC) system. There are major changes in how industries are defined, requiring the movement of many corporations to different industry categories. Nearly all published industry groupings have been affected by the conversion to NAICS. Major changes include the following: • Publishing, part of SIC Manufacturing Major Group 27, has been deleted from the Manufacturing sector, and Eating and Drinking Places, SIC Retail Trade Major Group 58, (included in All Other Retail Trade in the SIC Publication) has been deleted from the Retail Trade sector. These industries have been moved to NAICS sectors outside of Manufacturing, Mining and Trade. Printing and Related Support Activities, the remainder of SIC 27, now comprises NAICS subsector 323. • A new group has been created, NAICS subsector 334, Computer and Electronic Product Manufacturing. This group is primarily comprised of parts of SIC Major Groups 35 Machinery, Except Electrical; 36, Electrical and Electronic Equipment; and 38, Instruments and Related Products. The new group presents for the first time separate financial data for manufacturers of Computer and Peripheral Equipment, as well as for Communications Equipment. • Most of the remainder of SIC Major Group 35, Machinery, Except Electrical, is now included in NAICS subsector 333, Machinery Manufacturing; and the remainder of SIC Major Group 36, Electrical and Electronic Equipment, is in NAICS subsector 335, Electrical Equipment, Appliance and Component Manufacturing. • SIC Major Group 38, Instruments and Related Products, was reorganized with the major sections moving to NAICS subsector 334, Computer and Electronic Product Manufacturing; NAICS subsector 333, Machinery Manufacturing, and NAICS subsectore 339, Miscellaneous Manufacturing. • Food Manufacturing, NAICS subsector 311, and Beverage and Tobacco products Manufacturing, NAICS subsector 312, previously combined on an SIC basis, are now published separately. • NAICS subsector 331, Primary Metal Manufacturing, formerly SIC Major Group 33, has a new industry group, Foundries. Foundries was previously included in the SIC Ferrous and Non-Ferrous categories. • A number of other NAICS groups, while largely consistent with their SIC counterparts, have small but noticeable changes due to the transfer of certain product lines from one group to another. Once example is NAICS subsector 336, Transportation Equipment Manufacturing, which includes products such as vehicle seating, lighting, and air-conditioning that were not part of SIC 37, Transportation Equipment. • NAICS expands the definition of Manufacturing to include companies that perform the entrepreneurial functions of manufacturing, but contract out the actual making of the product. This includes companies contracting overseas for manufacturing their products. The operations of those foreign plants are not fully consolidated in the financial reports, but are reported on the equity or cost basis of accounting. This change resulted in the reclassification of a number of companies from Wholesale Trade in the SIC publication to Manufacturing in the NAICS publication. For a comprehensive treatment of the SIC to NAICS Conversion, see the 1997 NAICS manual, or visit the NAICS Web site at www.census.gov/naics.

Questions concerning this advance report should be directed to Contact: Ronald B. Horton (301) 763-3343 or Frank Hartman (301) 763-3379.


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Source: U.S. Census Bureau, Company Statistics Division
Maintained by Traci Gillespie-Brown

Revised Monday, 01-Mar-2004 09:03:47 EST.

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