[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

U.S. MANUFACTURING,MINING, AND WHOLESALE TRADE CORPORATIONS
THIRD QUARTER 2002
DECEMBER 2002-------------------Released 10 a.m. (EST), Friday, December 13, 2002 (CB02-157)
Contact: Ronald B. Horton (301) 763-3343 or Frank Hartman (301) 763-3379.

Availability | Order & Release | QFR Program |


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

Seasonally Adjusted After-Tax Profits and Sales

U.S. Manufacturing Corporations:
Seasonally adjusted after-tax profits recorded by manufacturing corporations were $45.3 billion in the third quarter 2002, up $3.6 (+/-1.4) billion from the $41.7 billion recorded the prior quarter, the Commerce Department's Census Bureau reported. Year over year profits were up $33.5 (+/-1.7) billion from the $11.9 billion reported in the third quarter 2001. This is the third consecutive quarterly increase in profits after dropping to the $7.7 billion level in the fourth quarter 2001.

Seasonally adjusted sales in the third quarter 2002, at $1,068.2 billion, were up 1.9% (+/-0.7%) from the $1,048.5 billion recorded in second quarter 2002, but were about the same as the third quarter 2001.

Profits per dollar of sales at 4.2 cents in the third quarter 2002 were up 0.2 (+/-0.1) cents over prior quarter, and up 3.1 (+/-0.2) cents over third quarter 2001.

Nondurable Goods Manufacturers:
Seasonally adjusted after-tax profits recorded by nondurable goods manufacturers at $30.6 billion in the third quarter 2002 were about the same as the prior quarter, but up $3.8 (+/-0.6) billion from the $26.8 billion recorded in the third quarter 2001.

Sales for third quarter 2002 were $493.7 billion, following sales of $478.8 billion the prior quarter, and $487.5 billion in the third quarter 2001.

After-tax profits averaged 6.2 cents per dollar of sales in the current quarter, 6.3 cents in second quarter 2002, and 5.5 cents in the third quarter 2001.

Durable Goods Manufacturers:
Seasonally adjusted after-tax profits recorded by durable goods manufacturers were $14.8 billion in third quarter 2002, up $29.7 (+/-0.2) billion from a loss of $14.9 billion in third quarter 2001. Second quarter 2002 after-tax profits were $11.3 billion.

Sales for third quarter 2002 were $574.6 billion, and $573.7 billion in the same quarter a year ago.

After-tax profits averaged 2.6 cents per dollar of sales in the current quarter, up 0.6 (+/-0.2) cents from the second quarter 2002, and up from the loss of 2.6 cents in the third quarter 2001.

Unadjusted After-Tax Profits and Sales

U.S. Manufacturing Corporations:
Unadjusted after-tax profits of manufacturing corporations in third quarter 2002 were $43.1 billion, up $33.2 (+/-1.7) billion from the $9.8 billion recorded in third quarter 2001.

The profit increase was due to higher operating income, lower interest expense, and lower nonrecurring charges.

Sales at $1,069.2 billion, were not statistically different from the $1,062.4 billion recorded in the same quarter a year ago.

After-tax profits per dollar of sales averaged 4.0 cents compared to 0.9 cents a year earlier, and 4.5 cents in second quarter 2002.

Nondurable Goods Manufacturers:
Unadjusted after-tax profits recorded by nondurable goods manufacturers were $31.5 billion in third quarter 2002, up $3.6 (+/-0.6) billion from the $27.9 billion reported in third quarter 2001. Eight of the eleven nondurable goods manufacturing categories recorded year over year increased profits.

Beverage and tobacco products' year over year increase of $2.8 (+/-0.2) billion resulted from higher nonrecurring credits; Chemicals' improvement, $2.2 (+/-0.3) billion, was due to an increase in equity income. Petroleum and coal products' profit decline for that period of $4.5 (+/-0.1) billion resulted from lower operating income, lower equity income, and higher nonrecurring charges.

Sales for third quarter 2002 were $501.8 billion, up $6.8 (+/-4.9) billion from the year before.

After-tax profits averaged 6.3 cents per dollar of sales compared to 5.6 cents a year ago, and 6.6 cents last quarter.

When compared to second quarter 2002 after-tax profits of $32.2 billion, nondurable goods manufacturers' after-tax profits were down $0.7 (+/-0.7) billion. Although beverage and tobacco products profits were up $2.2 (+/-0.1) billion from the prior quarter, it was not enough to offset losses recorded in other nondurable goods manufacturing categories.

Durable Goods Manufacturers:
Unadjusted after-tax profits by durable goods manufacturers were $11.6 billion in third quarter 2002, compared to a loss of $18.1 billion a year earlier. The profit rise was due to lower operating costs, interest expense, and nonrecurring charges in third quarter 2002. Most durable goods manufacturing categories recorded after-tax profits this quarter. Transportation equipment was up $3.0 (+/-0.1) billion over a year earlier; miscellaneous manufacturing was up $1.7 (+/-0.6) billion, and electrical equipment, appliances, and components, was up $1.3 (+/-0.2) billion. The $2.5 billion loss recorded in computer and electronic products was less than the $29.1 billion loss recorded in the same quarter last year; this improvement was mainly due to lower nonrecurring charges this quarter.

Sales for durable manufacturers this quarter at $567.4 billion were not statistically different from the same quarter a year earlier.

After-tax profits averaged 2.0 cents per dollar of sales this quarter compared to a loss of 3.2 cents a year ago, and a profit per dollar of sales averaging 2.6 cents from second quarter 2002.

U.S. Mining Corporations

Unadjusted after-tax profits for mining corporations were $1.5 billion in third quarter 2002 compared to a profit of $1.0 billion in the same quarter last year.

Current quarter sales were $20.2 billion, down $4.9 (+/-0.2) billion from the same quarter a year earlier.

After-tax profit per dollar of sales averaged 7.5 cents this quarter compared to 3.9 cents in third quarter 2001.

U.S. Wholesale Trade Corporations

Unadjusted after-tax profits for wholesale trade corporations were $6.1 billion in the third quarter 2002, up $3.8 (+/-0.2) billion from the same quarter a year ago.

Sales for these corporations were $317.6 billion, up $12.4 (+/-4.1) billion from the same quarter a year ago.

After-tax profits per dollar of sales averaged 1.9 cents this quarter compared to 0.8 cents in the third 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 Corporations with assets $250,000 and over, and Mining, and Trade Corporations with assets $50 million and over- Third quarter 2002 (QFR-02-3). 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). Fourth quarter 2002 advance data are scheduled for release on April 4, 2003.

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
U.S. MANUFACTURING CORPORATIONS

					        Seasonally Adjusted	


                                             3Q        2Q        3Q    

                                               2002      2002(1)   2001(1) 

Rate of return (after taxes):

 Cents per dollar of sales ................     4.2       4.0       1.1

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



                                                   (million dollars) 

Sales ....................................1,068,223 1,048,539 1,061,187

 Income after income taxes ................  45,341    41,660    11,880

 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-02-3, December 2002.


TABLE 1. PART B
U.S. MANUFACTURING CORPORATIONS



 						   Unadjusted	

                                                       

                                             3Q        2Q        3Q    

                                               2002      2002(1)   2001(1) 

Rate of return (after taxes):

 Cents per dollar of sales ................     4.0      4.5       0.9

 Percent on equity (annual rate) ..........     9.4     10.5       2.1    

                                                  

                                                   (million dollars) 

Sales ....................................1,069,194 1,070,871 1,062,443

 Income after income taxes ................  43,072    47,655     9,848

 Dividends paid (cash) ....................  23,687    24,421    21,962



(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-02-3, December 2002.


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



                                                       Sales

                                                        

                                              3Q        2Q        3Q 

                Industry Group                 2002      2002      2001    

                                                   (million dollars)

All manufacturing corporations(2)..........1,069,194 1,070,871 1,062,443



All nondurable goods.......................  501,830   486,867   495,006

  Food.....................................   79,623    76,236    82,634

  Beverage and tobbaco products............   36,516    36,801    37,981

  Textiles mills and textile product mills.   12,420    12,634    11,425 

  Apparel and leather products.............   24,120    21,647    24,450

  Paper ...................................   38,166    38,488    40,492

  Printing and related support activities..   17,129    16,381    16,874

  Petroleum and coal products..............  128,805   117,018   118,432

  Chemicals ...............................  133,349   135,760   130,822

   Basic chemicals, resins, and               

    synthetics(3)..........................   38,403    39,221    38,026

   Pharmaceuticals and medicines(3)........   57,099    57,639    55,335

   All other chemicals(3)..................   37,847    38,899    37,462

  Plastics and rubber products.............   31,702    31,904    31,895

                                                                        

All durable manufacturing..................  567,364   584,004   567,438

  Wood products............................   16,603    16,387    16,531

  Nonmetallic mineral products.............   23,603    23,190    25,791

  Primary metals...........................   34,363    34,799    35,095 

   Iron, steel, and ferroalloys(3).........   14,789    14,749    14,831

   Nonferrous metals(3)....................   14,262    14,345    15,070

   Foundries(3)............................    5,312     5,704     5,194

  Fabricated metal products................   50,228    51,316    49,447

  Machinery ...............................   64,334    67,302    65,794

  Computer and electronic products.........  108,686   110,555   118,324

   Computer and peripheral equipment(3)....   33,153    35,122    36,451

   Communications equipment(3).............   20,969    22,093    27,991

   All other electronic products(3)........   54,564    53,341    53,882

  Electrical equipment, appliances and

   components..............................   45,244    46,452    43,533

  Transportation equipment ................  183,079   194,964   174,988

   Motor vehicles and parts(3).............  134,088   145,541   123,517

   Aerospace products and parts(3).........   40,395    40,833    42,458

  Furniture and related products...........   14,442    14,356    14,215

  Miscellaneous manufacturing..............   26,784    24,683    23,721



All mining(2)..............................   20,178    19,753    25,079

All wholesale trade(2).....................  317,558   311,484   305,188

All retail trade(2)........................       NA   349,420   328,494



(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-02-3, December 2002.


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



 

                                                   Operating Profits*

                                               3Q        2Q        3Q

                Industry Group                 2002      2002      2001   

                                                   (million dollars)

All manufacturing corporations(2)..........   64,420    72,341    45,496



All nondurable goods.......................   40,348    43,196    37,204

  Food.....................................    6,162     5,801     5,578

  Beverage and tobbaco products............    7,582     7,843     6,627

  Textiles mills and textile product mills.      712       870       401 

  Apparel and leather products.............    2,427     1,427     1,749

  Paper ...................................    2,099     2,338     2,624

  Printing and related support activities..    1,207     1,184     1,062

  Petroleum and coal products..............    5,276     5,462     6,859

  Chemicals ...............................   12,676    15,647    10,622

   Basic chemicals, resins, and               

    synthetics(3)..........................    2,091     2,389       230 

   Pharmaceuticals and medicines(3)........    6,659     9,389     7,900

   All other chemicals(3)..................    3,926     3,869     2,492

  Plastics and rubber products.............    2,206     2,623     1,681

                                                                        

All durable manufacturing..................   24,072    29,145     8,292

  Wood products............................      939       874       847

  Nonmetallic mineral products.............    2,415     2,254     2,743

  Primary metals...........................    1,041     1,206       645

   Iron, steel, and ferroalloys(3).........      272       130     (174)

   Nonferrous metals(3)....................      509       621       566

   Foundries(3)............................      260       455       252

  Fabricated metal products................    3,674     4,403     3,360

  Machinery ...............................    3,866     4,461     3,000

  Computer and electronic products.........     (341)   (1,321)  (11,211)

   Computer and peripheral equipment(3)....      488       (52)   (1,102)

   Communications equipment(3).............   (1,341)   (1,461)   (6,315)

   All other electronic products(3)........      513       192    (3,794)

  Electrical equipment, appliances and

   components..............................    5,151     5,641     3,996

  Transportation equipment ................    2,883     7,798     1,920

   Motor vehicles and parts(3).............   (1,172)    3,408    (1,973)

   Aerospace products and parts(3).........    3,172     3,527     3,051

  Furniture and related products...........    1,010       991       801

  Miscellaneous manufacturing..............    3,435     2,837     2,192



All mining(2)..............................    2,196     2,208     3,988

All wholesale trade(2).....................    9,026     8,321     6,984

All retail trade(2)........................       NA    16,344    12,227

*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-02-3, December 2002.


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



 

                                                  After-Tax Profits

                                              3Q        2Q        3Q 

                Industry Group                 2002      2002      2001   

                                                   (million dollars)

All manufacturing corporations(2)..........   43,072    47,655     9,848 



All nondurable goods.......................   31,514    32,194    27,939

  Food.....................................    4,258     3,765     3,092

  Beverage and tobbaco products............    7,957     5,717     5,126

  Textiles mills and textile product mills.      278       443       (63) 

  Apparel and leather products.............    1,625       976     1,315

  Paper ...................................    1,064       935       665

  Printing and related support activities..      588       701       432

  Petroleum and coal products..............    4,275     6,076     8,818

  Chemicals ...............................   10,154    11,916     7,999

   Basic chemicals, resins, and               

    synthetics(3)..........................    1,877     1,507      (683)

   Pharmaceuticals and medicines(3)........    6,160     7,454     7,081

   All other chemicals(3)..................    2,117     2,955     1,601

  Plastics and rubber products.............    1,314     1,666       556 

                                                                        

All durable manufacturing..................   11,558    15,461   (18,091)

  Wood products............................      480       638       524 

  Nonmetallic mineral products.............   (1,180)    1,139     1,680

  Primary metals...........................      206       412      (218)

   Iron, steel, and ferroalloys(3).........     (105)     (214)     (756)

   Nonferrous metals(3)....................      142       330       464

   Foundries(3)............................      168       295        75 

  Fabricated metal products................    2,354     2,717     1,737

  Machinery ...............................      132      (363)    1,755

  Computer and electronic products.........   (2,468)   (4,260)  (29,147)

   Computer and peripheral equipment(3)....    2,336     1,023    (2,626)

   Communications equipment(3).............   (2,264)   (4,508)  (20,687)

   All other electronic products(3)........   (2,541)     (775)   (5,834)

  Electrical equipment, appliances and

   components..............................    5,204     5,335     3,887

  Transportation equipment ................    3,018     7,215       (24)

   Motor vehicles and parts(3).............      313     3,985    (1,683)

   Aerospace products and parts(3).........    2,148     2,674     1,177

  Furniture and related products...........      660       578       219

  Miscellaneous manufacturing..............    3,153     2,050     1,494



All mining(2)..............................    1,506     1,454       974

All wholesale trade(2).....................    6,126     5,953     2,372

All retail trade(2)........................       NA     9,391     5,156



(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-02-3, December 2002.


TABLE 3. PART A
U.S. MANUFACTURING CORPORATIONS
SEASONALLY ADJUSTED SALES



 

 

                                                  Sales(1)

         Industry Group and Year        Q1       Q2        Q3       Q4

                                              (million dollars)

All manufacturing:

    1994 ..........................  784,502   803,062   825,305   841,681

    1995 ..........................  871,295   872,817   883,571   899,673

    1996 ..........................  914,246   932,712   948,314   961,233

    1997 ..........................  965,768   972,458   986,712   995,121

    1998 ..........................  989,748   981,877   986,054   993,427

    1999 ..........................1,002,694 1,026,951 1,048,533 1,070,796

    2000 ..........................1,120,025 1,128,477 1,146,346 1,119,037

    2001 ..........................1,115,621 1,094,145 1,061,187 1,023,466

    2002 ..........................1,028,857 1,048,539 1,068,223

All nondurable manufacturing:

    1994 ..........................  387,274   394,766   405,706   409,946

    1995 ..........................  425,630   427,707   430,829   435,900

    1996 ..........................  442,173   452,458   457,690   463,023

    1997 ..........................  463,164   456,576   461,227   463,602

    1998 ..........................  452,349   446,071   443,410   440,044

    1999 ..........................  445,655   452,917   460,714   475,608

    2000 ..........................  507,276   515,131   526,811   504,164

    2001 ..........................  508,544   506,918   487,454   470,325

    2002 ..........................  464,472   478,622   493,663

All durable manufacturing:

    1994 ..........................  397,228   408,296   419,599   431,735

    1995 ..........................  445,665   445,110   452,742   463,773

    1996...........................  472,073   480,254   490,624   498,210

    1997 ..........................  502,604   515,882   525,485   531,519

    1998 ..........................  537,399   535,806   542,644   553,383

    1999 ..........................  557,039   574,034   587,819   595,188

    2000 ..........................  612,749   613,346   619,535   614,873

    2001 ..........................  607,077   587,227   573,733   553,141

    2002 ..........................  564,385   569,917   574,560





(1)Revised.

SOURCE: Quarterly Financial Report for Manufacturing, Mining, and Trade Corporations--QFR-02-3, December 2002.


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



 

                                            After-Tax Profits(1)

                                         Q1       Q2        Q3       Q4

                                               (million dollars)

All manufacturing:

    1994 ..........................   36,436    41,157    45,384    52,092

    1995 ..........................   52,751    52,020    49,311    44,232

    1996 ..........................   51,115    54,071    61,198    58,745

    1997 ..........................   60,531    62,047    61,873    60,360

    1998 ..........................   74,247    49,560    61,115    49,818

    1999 ..........................   59,079    64,235    67,067    67,677

    2000 ..........................   76,119    72,258    74,461    47,580

    2001 ..........................   (1,695)   17,876    11,880     7,698

    2002 ..........................   22,427    41,660    45,341

All nondurable manufacturing:

    1994 ..........................   18,996    19,821    22,430    26,570

    1995 ..........................   25,878    28,196    27,573    22,258

    1996 ..........................   28,038    28,313    32,096    30,460

    1997 ..........................   33,411    30,693    30,475    28,707

    1998 ..........................   29,767    28,640    30,681    17,613

    1999 ..........................   26,526    29,062    31,188    30,706

    2000 ..........................   37,617    38,849    36,857    29,005

    2001 ..........................   31,862    34,406    26,827    18,877

    2002 ..........................   27,131    30,345    30,591

All durable manufacturing:

    1994 ..........................   17,440    21,336    22,954    25,522

    1995 ..........................   26,873    23,824    21,738    21,974

    1996 ..........................   23,077    25,758    29,102    28,285

    1997 ..........................   27,120    31,354    31,398    31,653

    1998 ..........................   44,480    20,920    30,434    32,205

    1999 ..........................   32,553    35,173    35,879    36,971

    2000 ..........................   38,502    33,409    37,604    18,575

    2001 ..........................  (33,557)  (16,530)  (14,947)  (11,179)

    2002 ..........................   (4,704)   11,315    14,750 







(1)Revised.

SOURCE: Quarterly Financial Report for Manufacturing, Mining, and Trade Corporations--QFR-02-3, December 2002.


Data after third quarter 2000 shown in Table 3 are presented on the North American Industry Classification System basis. Data prior to fourth quarter 2000 are presented on the Standard Industrial Classification System basis. Comparisions of these data are useful only for trend analysis.


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--2003
[Economic Indicator Release Schedule]



Quarter         Manufacturing, Mining, and Wholesale Trade        Retail Trade

                            

Fourth 2002		     April 4, 2003			   April 4, 2003	

First  2003		     June 13, 2003			   July 15, 2003

Second 2003		September 12, 2003			October 15, 2003

Third  2003		 December 12, 2003			January 13, 2004


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 09:04:38 EST.

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