US Q3 after-tax profits rose 10.1 pct

Biz.Yahoo/Reuters ^ | December 23, 2003

[Starwind]

US Q3 after-tax profits rose 10.1 pct
Tuesday December 23, 8:42 am ET

 WASHINGTON, Dec 23 (Reuters) - Commerce Department
estimates of profits by U.S. corporations, with comparisons.
 Profits from current production include adjustments for
inventory valuation and capital consumption. They do not
reflect tax law changes that would affect profits as reported
to tax authorities. Data are seasonally adjusted.
 Percent changes from preceding period:
.                           Q3'03   Q2'03   2002
 From current production     9.9    10.3   17.4
 Corporate income taxes      9.0    -1.2   -3.0
 After Tax Profits          10.1    13.8   24.6
 HISTORICAL/NOTE:
 Beginning with the annual revisions of Dec. 10, profits
after tax now include inventory valuation and capital
consumption adjustments. Data reported for before-tax and
after-tax profits previously did not include inventory
valuation and capital consumption adjustments.

[Starwind]

The full BEA report is at

GROSS DOMESTIC PRODUCT: THIRD QUARTER 2003 (FINAL)
CORPORATE PROFITS: THIRD QUARTER 2003 (REVISED)

[Starwind]

Fyi...

[RandallFlagg]

We need to all start a "Senate Live Thread" whenever Daschle returns so we can see him walk out there with a rattle, binkey and diaper....

[Poohbah]

Blah blah blah tax cuts for the rich blah blah blah outsourcing blah blah blah coddling white collar corporate crooks blah blah blah Enron blah blah blah he's hiding Osama blah blah blah fake turkey photo-op blah blah blah neocon cabal blah blah blah unilateral cowboyism blah blah blah...

[q_an_a]

Corp profits at all time high mean federal revenue expands too. anyone doubt that the numbers will make all the deficit screaming seem childish in a year?

[Starwind]

Corp profits at all time high mean federal revenue expands too. anyone doubt that the numbers will make all the deficit screaming seem childish in a year?

Sincerely, the profits aren't real and actual tax liabilities are based on different numbers.

Prior to the BEA benchmark revison (see historical note below) the Q2 quarters' and 2002 years' corporate profits are much smaller if not negative.

US Q2 final after tax profits fell 5.0 pct
Friday September 26, 8:29 am ET

Data are seasonally adjusted.  
Percent changes from preceding period:
.                           Q2'03    Prev  Q1'03    2002
 From current production     9.9    10.8    2.6     7.6
 After Tax                  -5.0    -3.4    3.8    -4.0
 Before Tax                 -3.8    -2.8    4.8    -0.7
 Tax Liability              -1.5    -1.6    6.9     7.0

HISTORICAL/NOTE: Beginning with the annual revisions of Dec. 10, profits after tax now include inventory valuation and capital consumption adjustments. Data reported for before-tax and after-tax profits previously did not include inventory valuation and capital consumption adjustments.

Note now those same profits for Q2 and 2002 are now reported as significantly higher. This is a distortion based on chnages in the BEAs benchmark revision. Last quarter and last year weren't a do-over.

Data are seasonally adjusted.
Percent changes from preceding period:
.                           Q3'03   Q2'03   2002
 From current production     9.9    10.3   17.4
 Corporate income taxes      9.0    -1.2   -3.0
 After Tax Profits          10.1    13.8   24.6

For Q3, the BEA is simply 'adjusting' again, as it invariably does, and the actual profits are no where close to what has been assumed.

[q_an_a]

even with funny numbers and the usual reports of pre tax and after tax earnings, it is hard to cover up 10% increases. in addition, because small business does a lot of work for big business and has fewer accountants to hide the profit, the 20 million small businesses will be paying in lots despite the deduction for cool new pickups and SUVs.