[Commerce Seal]

UNITED STATES BUREAU OF THE CENSUS

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


THIRD QUARTER 2006 ADVANCE DATA FROM THE QUARTERLY FINANCIAL REPORT LARGE U.S. RETAIL TRADE CORPORATIONS

   Released 10 a.m. (EST), Tuesday, January 9, 2007    CB07-06

Contact: Yolando St.George (301) 763-6600 or John Seabold (301) 763-3386.


   Press Release (pdf)   |   QFR Program

CHART 1:
[CHART 1: Large Retailers' After-Tax Profits.]
CHART 2:
Retail Profits Per Dollar of Sales

After-Tax Profits and Sales - Not Seasonally Adjusted
After-tax profits of U.S. retail corporations with assets of $50 million and over totaled $14.4 billion in the third quarter 2006, up $0.7 (±0.1) billion from the $13.8 billion of the preceding quarter, and up $1.6 (±0.1) billion from the $12.8 billion of the same quarter a year ago, the U.S. Census Bureau reported. Sales in the third quarter 2006, at $484.1 billion, were not statistically different from the $482.6 billion of last quarter, and up $38.0 (±5.1) billion or 8.5 percent (±1.2%) from the $446.1 billion of the third quarter of 2005. These data are not adjusted for seasonality.

After-tax profits for these corporations averaged 3.0 cents per dollar of sales for the third quarter of 2006, up 0.1 cent from the 2.9 cents of the preceding quarter, and up 0.1 cent from the 2.9 cents recorded in the third quarter of 2005.

The annual rate of after-tax profits on stockholders' equity in the third quarter of 2006 was 15.0 percent, up 0.5 percent (±0.1%) from the 14.6 percent of the second quarter of 2006, and up 0.5 percent (±0.1%) from the 14.5 percent of the third quarter of 2005.

NOTE
These data are based on quarterly financial reports obtained from approximately 500 corporations. More detailed information on the retail trade sector for the third quarter 2006 will be published in the Quarterly Financial Report for Manufacturing, Mining, and Trade Corporations - Fourth Quarter 2006 (QFR-06-4), scheduled for release on April 3, 2007.

SAMPLING
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 (+/-0.2) cents", appearing in the text, indicates the range (+2.3 to +2.7 cents) in which the actual change is likely to have occurred. The range given for the change is a 90% 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 at the 90% confidence level. The quarterly publication includes more detailed explanations of confidence intervals and sampling variability, along with additional measures of sampling variability. Beginning with the 3Q2006 publication, the methodology for calculating the sample variance has changed. See the Survey Methodology section of the Introduction text in the publication release for information on this change in methodology for calculating the sample variance.

DATA AVAILABILITY
This press release can be viewed today in page image format (.pdf) at the internet website http://www.census.gov/csd/qfr. More detailed information on U.S. Manufacturing, Mining, and Wholesale and Retail Trade Corporations is available for downloading at our website under "QFR Products: Publication". The publication includes statements of income and retained earnings, balance sheets, and related financial and operating ratios. Data presented are classified by industry and asset size.

Fourth quarter 2006 advance data for U.S. Manufacturing, Mining, Wholesale and Retail Trade Corporations are scheduled for release on April 3, 2007.

TABLE 1. INCOME STATEMENT FOR U.S. RETAIL TRADE CORPORATIONS - ASSETS $50 MILLION AND OVER
 
                                                      3Q      2Q       3Q
                  Item                             2006    2006(1)  2005(1)
                                                      (million dollars)

Net sales, receipts, and operating revenues.... 484,119  482,649  446,121
Less: Depreciation, depletion, and amortization   8,954    8,911    8,355
Less: All other operating costs and expenses... 452,545  450,661  418,618
                                                
  Income (or loss) from operations.............  22,620   23,077   19,147

Interest Expense ..............................   3,561    3,483    3,101
All other nonoperating income (expense)........   2,970    2,022    3,112  

  Income (or loss) before income taxes.........  22,029   21,616   19,158

Less: Provision for current and deferred         
  domestic income taxes........................   7,593    7,832    6,351
                                                 
  Income (or loss) after income taxes..........  14,436   13,783   12,807
                                                 
Cash dividends charged to retained earnings                              
  in current quarter...........................   2,457    3,211    2,328
                                                 
  Net income retained in business..............  11,978   10,572   10,480
                                                 
Retained earnings at beginning of quarter...... 275,777  265,522  240,846
Other direct credits (or charges) to             
  retained earnings (net)......................  (2,652)  (2,996)  (7,635)
                                                            
Retained earnings at end of quarter............ 285,104  273,098  243,691
(1) Revised.

SOURCE:Quarterly Financial Report for Retail Trade Corporations--QFR-06-3, January 2007. U.S. Census Bureau, January 2007.

TABLE 2. INCOME STATEMENT RATIOS FOR U.S. RETAIL TRADE CORPORATIONS - ASSETS $50 MILLION AND OVER
 
                                                     3Q     2Q       3Q
                  Item                             2006   2006(1)  2005(1)
                                                          (cents)

Net sales, receipts, and operating revenues....   100.0   100.0    100.0
Less: Depreciation, depletion, and amortization     1.9     1.9      1.9
Less: All other operating costs and expenses...    93.5    93.4     93.8
                                                   
  Income (or loss) from operations.............     4.7     4.8      4.3

Interest Expense ..............................     0.7     0.7      0.7                         
All other nonoperating income (expense)........     0.6     0.4      0.7 
                                                  
  Income (or loss) before income taxes.........     4.6     4.5      4.3
                                                  
Less: Provision for current and deferred            
  domestic income taxes........................     1.6     1.6      1.4 
                                                    
  Income (or loss) after income taxes..........     3.0     2.9      2.9
(1) Revised.

SOURCE: Quarterly Financial Report for Retail Trade Corporations--QFR-06-3, January 2007. U.S. Census Bureau, January 2007.

TABLE 3. OPERATING RATIOS FOR U.S. RETAIL TRADE CORPORATIONS - ASSETS $50 MILLION AND OVER
 
                                                     3Q      2Q       3Q
                  Item                             2006    2006(1)  2005(1)
                                                          (percent)

Annual rate of profit on stockholders' equity
  at end of period:
    Before income taxes.........................  22.92   22.84    21.72
    After income taxes..........................  15.02   14.56    14.52
                                                            
Annual rate of profit on total assets:                                  
    Before income taxes.........................   9.67    9.70     9.09
    After income taxes..........................   6.34    6.19     6.07
(1) Revised.

SOURCE: Quarterly Financial Report for Retail Trade Corporations--QFR-06-3, January 2007. U.S. Census Bureau, January 2007.

  RELEASE INFORMATION

Schedule of Advance Data Release Dates:     2007
Economic Indicator Release Schedule

Quarter      Manufacturing, Mining, and Wholesale Trade     Retail Trade

Fourth  2006           April 3, 2007                        April 3, 2007
First   2007           June 11, 2007                        July 11, 2007
Second  2007      September 10, 2007                      October 9, 2007
Third   2007       December 10, 2007

Questions concerning this advance report should be directed to Contact:
Yolando St.George   (301) 763-6600    or    John Seabold   (301) 763-3386.

e-mail: csd.qfr@census.gov

Source: U.S. Census Bureau, Company Statistics Division
Maintained by Traci Gillespie-Brown
Revised Tuesday, 09-Jan-2007 16:11:55 EST.

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