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MICHIGAN CORPORATIONS REPORT NEARLY HALF-BILLION LOSS IN THIRD QUARTER 1991; FIFTH CONSECUTIVE QUARTERLY LOSS

         MICHIGAN CORPORATIONS REPORT NEARLY HALF-BILLION LOSS
        IN THIRD QUARTER 1991; FIFTH CONSECUTIVE QUARTERLY LOSS
    DETROIT, Nov. 8 /PRNewswire/ -- Michigan's top publicly traded companies suffered a $458 million loss in corporate profits during the third quarter of 1991, compared with an $871 million loss a year ago, according to David G. Sowerby, vice president and economist at Manufacturers Bank, N.A.  This marks the fifth consecutive quarter of negative profits for Michigan companies, coincident with earnings losses for the Big Three.  Since the second quarter of 1990, combined Big Three earnings are down more than $9 billion.  In the third quarter, GM, Ford and Chrysler lost an estimated $1.7 billion vs. a $2.1 billion loss in the third quarter of 1990.
    Excluding the losses for the Big Three, Michigan corporate profits totaled a positive $1.3 billion in the third quarter, an 8-percent increase from year-ago levels.  For the same period, U.S. corporate earnings fell 23 percent.  "The health of Michigan's non-automotive earnings, despite the recession, has enabled the state to fare better in the current downturn compared with 1980 and 1982," according to Sowerby. He added that although Michigan's non-automotive companies are certainly not recession proof, their earnings have fared better than the 1980-1982 recession period.
    Michigan non-automotive industries which experienced favorable profit performance in the third quarter include consumer goods (led by Kellogg and Gerber), technology, financial, health care and, surprisingly, the auto supply industry.  Retail companies also fared well (with the exception of Highland Superstores), despite persistently weak retail sales growth.
    The Michigan Corporate Profit Report is derived from the Michigan Equity 100 Stock Index, which contains the 100 largest publicly traded companies in the state and serves as a leading indicator for the Michigan economy.  The stock index was developed by Manufacturers Bank, N.A.
                     CORPORATE PROFITS BY INDUSTRY
                           (Million Dollars)
                            NO. OF
                          COMPANIES        THIRD QUARTER       PERCENT
    SECTOR                REPORTING      1990        1991       CHANGE
    Auto Production           3      $ -2,091.0  $ -1,713.0       ---
    Auto Supply              11            14.2        17.4     +22.0
    Heavy Industry            8           329.6       256.6     -22.2
    Consumer Goods           11           261.9       272.6      +4.0
    Energy                    3           115.6       191.3     +65.5
    Technology               10           -11.1        18.9       ---
    Finance                   9           219.4       234.8      +7.0
    Retail                   10           146.8       103.4     -29.5
    Health and Services       6           143.4       160.3     +11.7
                 TOP 15 MICHIGAN COMPANIES BY EARNINGS
                           (Million Dollars)
                                 THIRD QUARTER
                         NET INCOME        NET INCOME          PERCENT
    COMPANY                 1990              1991              CHANGE
    Dow Chemical           $284.0            $223.0             -27.4
    Kellogg Co.             162.3             172.4              +5.9
    Detroit Edison Co.      149.1             163.4              +8.8
    Kmart Corp.             148.0             163.0              +9.2
    Upjohn Co.              106.3             140.2             +24.1
    NBD Bancorp              69.9              70.0              +0.2
    Whirlpool Corp.          60.0              48.0             -25.0
    Comerica Inc.            35.8              38.2              +6.5
    First of America         33.4              36.0              +7.2
    Gerber Products          31.7              35.5             +10.8
    Masco Corp.              42.3              30.9             -36.9
    Manufacturers National
     Corp.                   29.1              30.6              +5.0
    CMS Energy Corp.        -33.7              28.6               ---
    Old Kent                 22.4              23.5              +4.4
    Michigan National Corp.   8.3              18.3             +54.3
    -0-                            11/8/91
    /CONTACT:  David G. Sowerby of Manufacturers Bank, N.A., 313-222-4829/
    (MNTL) CO:  Manufacturers Bank, N.A. ST:  Michigan IN:  FIN SU:  ECO ML -- DE004 -- 2505 11/08/91 10:00 EST
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Date:Nov 8, 1991
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