Corporate Profits Inch Higher

Corporate profits inched a year-on-year 0.1 percent higher in the first quarter to an after-tax $1.812 trillion annualized rate. This year's tax cut had a major effect, trimming the annualized rate for taxes on corporate income by more than $100 billion, from $445.6 billion in the fourth quarter to $328.2 billion. This is lowest rate of the expansion, since third-quarter 2009. Pre-tax profits were actually down sharply, a year-on-year 6.0 percent lower to a $2.140 trillion rate. Note that profits are without inventory valuation or capital consumption adjustments.