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FOURTH-QUARTER MICHIGAN CORPORATE PROFITS: BACK IN THE BLACK

 FOURTH-QUARTER MICHIGAN CORPORATE PROFITS: BACK IN THE BLACK
 DETROIT, March 3 /PRNewswire/ -- The following was released by Manufacturers Bank, N.A.:
 In the fourth quarter of 1991, corporate profits for the 100 companies that comprise the Michigan Equity 100 Stock Index totaled $259 million. This is the first time corporate profits have been positive since the second quarter of 1990. From the third quarter of 1990 through the third quarter of 1991, Michigan corporate profits suffered a cumulative $3.7 billion loss due to a $9.1 billion earnings loss for the Big Three.
 For all of 1991, Michigan corporate earnings were down $1.0 billion. The last time Michigan corporate profits suffered a loss for the year was in 1980, when earnings were $1.2 billion under water. Not surprisingly, in 1980 and 1991 auto losses were the key. In 1980 the Big Three lost $4 billion, and in 1991 losses totaled $5.8 billion.
 Absent the weak earnings for auto producers, Michigan corporate profits fared very well in both the fourth quarter and the entire 1991 year. Excluding the losses for Ford and GM, Michigan corporate profits are estimated to have risen better than 50 percent in the fourth quarter when compared with year-ago levels. While the state continues to suffer from high unemployment rates (8.9 percent in January) due to a weak auto industry, the non-automotive sector has achieved respectable earnings performance. Non-automotive blue chip stocks such as Kmart, Upjohn, Edison, Kellogg and the commercial banks all reported favorable profits
 Although Michigan has certainly felt the sting of a weak economy, the non-automotive sector continues to provide a cushion from a dismal auto environment. Non-Big Three Michigan corporate profits totaled $4.8 billion in 1991, compared to $4.7 billion in 1990, a 2-percent increase. Nationwide, corporate earnings fell 8 percent in 1991. The success of the non-automotive sector has kept Michigan's unemployment rate well below the 17-percent jobless figure which prevailed during the depths of the last recession.
 FOURTH-QUARTER MICHIGAN CORPORATE PROFITS
 (Dollar amounts in millions)
 NET INCOME NET INCOME
 4TH QUARTER 4TH QUARTER
 COMPANY 1990 1991 PERCENT CHANGE
 Kmart Corp. $402.00 $422.10(e) 4.8
 Upjohn Co. 120.95 136.37 11.3
 Detroit Edison 102.39 127.91 20.0
 Kellogg Co. 108.50 118.20 8.2
 Chrysler Corp. 31.00 97.00 68.0
 NBD Bancorp 72.89 77.45 5.9
 Comerica Inc. 32.48 41.93 22.5
 Whirlpool Corp. 54.00 40.00 -35.0
 First of America 33.77 36.21 6.8
 Manufacturers National 29.98 32.19 6.9
 Old Kent Financial 20.57 23.82 13.6
 CMS Energy Corp. -619.09 21.50(e) ---
 Standard Federal 10.56 21.41 50.7
 PHM Corp. 3.73 20.85 82.1
 Michigan National 2.63 18.60 85.8
 (e) Estimated
 CORPORATE PROFITS BY INDUSTRY
 (Dollar amounts in millions)
 NUMBER OF 4TH QUARTER 4TH QUARTER PERCENT
 SECTOR COMPANIES 1990 1991 CHANGE
 Auto Production 3 $ (2,105) $ (899) ---
 Auto Supply 18 (23) 11 ---
 Heavy Industry 13 226 (120) ---
 Consumer Goods 11 235 202 11.4
 Energy 11 (516) 160 ---
 Technology 14 26 33 2.6
 Finance 13 162 282 9.2
 Retail 11 414 440 7.3
 Health 6 129 148 6.1
 -0- 3/3/92
 /CONTACT: David G. Sowerby of Manufacturers Bank, 313-222-4829/
 (MNTL) CO: Manufacturers Bank, N.A. ST: Michigan IN: FIN SU: ECO


ML -- DE007 -- 4373 03/03/92 09:50 EST
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Date:Mar 3, 1992
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