Corporate profits ticked up in the first quarter — thanks in part to higher commodity prices, which boosted the energy and mining industries, according to data from Statistics Canada.
On Monday, the national statistical agency noted that reported operating profits in the first quarter came in at $209.9 billion — up by 2% quarter over quarter, and up 3.4% compared with the same quarter a year ago — led by gains in non-financial industries.
Profits in non-financial industries rose by 3.1% in the first quarter to $110.2 billion, outpacing financial sector profits, which were up by 0.8% to $99.7 billion.
The energy sector was the clear standout, with profits rising by 34.8% in the first quarter.
“The increase was mainly driven by higher crude oil prices, stemming from supply disruptions following the closure of the Strait of Hormuz in March,” Statistics Canada said.
Profits also jumped by 34.6% in the petroleum and coal product manufacturing industry, as sales increased, which was “largely driven by higher prices.”
The mining sector saw profits rise by 11.3% in the quarter, which was driven by higher prices for gold and copper, “reflecting a sharp increase in demand for both commodities,” it noted.
These gains were offset by declining profits in the manufacturing sector, led by the auto industry, which recorded a loss of $921 million amid lower sales and reduced exports.
Profits also fell in the wood and paper manufacturing industry, which faced additional tariff pressures, and the metal and machinery manufacturing sector.
Excluding petroleum and coal manufacturing, manufacturing profits were down by $1.5 billion (-9.1%) in the first quarter, Statistics Canada said.
For the financial sector, the largest gain in operating profits came in the securities, portfolio management and investment industry, the statistical agency said, which saw profits rise by $1.1 billion, up 11.6% — whereas profits were weaker in the insurance segment.