Economic briefing note on gross operating profits in March 2016

March 2016

Release date: 30 May 2016
Next release: 5 September 2016

Australia's company gross operating profits (GOP) decreased by $2.9 billion (down 4.7 per cent) to $59.3 billion in the March quarter 2016. The decline over the quarter was driven by a decrease in mining GOP of $1.5 billion (down 9.6 per cent).

Non-mining GOP decreased by 3.1 per cent in the March quarter 2016, driven by declines in manufacturing, finance, media-telecom, utilities, and rental-real estate. This was partially offset by increases in transport, other services, wholesale, admin services, hospitality, arts, construction, retail, and professional services.

In the year to the March quarter 2016, non-mining GOP has decreased by $1.6 billion (down 3.3 percent). With construction experiencing the largest decrease of $0.8 billion (down 15.6 per cent) over this period. During the same period, mining GOP decreased by $3.9 billion (down 21.7 per cent).

Gross operating profits by industry

Industry March quarter 2016 ($ million) Change since December quarter 2015, $ million (%) Annual change to March quarter 2016, $ million (%)
Mining 13,975 -1477 (-9.6) -3881 (-21.7)
Manufacturing 6071 -1028 (-14.5) -646 (-9.6)
Utilities 2716 -160 (-5.6) -178 (-6.2)
Construction 4492 29 (0.6) -830 (-15.6)
Wholesale 5371 97 (1.8) 469 (9.6)
Retail 4457 25 (0.6) -6 (-0.1)
Hospitality 1792 65 (3.8) 272 (5.3)
Transport 5430 272 (5.3) 435 (8.7)
Media-Telecom 4590 -196 (-4.1) -211 (-4.4)
Finance 353 -800 (-69.4) -631 (-64.1)
Rental-Real estate 5172 -10 (-0.2) 273 (5.6)
Professional services 2497 6 (0.2) -323 (-11.5)
Admin services 701 91 (14.9) -2 (-0.3)
Arts 1046 62 (6.3) -47 (-4.3)
Other services 632 102 (19.2) 26 (4.3)
Total 59,295 -2924 (-4.7) -5431 (-8.4)
Non-mining total 45,320 -1447 (-3.1) -1550 (-3.3)

Total gross operating profits for Australia

This chart shows the gross operating profits for the mining industry and aggregated non-mining industries between March quarter 2006 and March quarter 2016. Gross operating profits in the mining industry were significantly more volatile over this time period. The combined non-mining industries recorded gross operating profits of $30.5 billion in March quarter 2006. Gross operating profits in the combined non-mining industries grew in an upwards trend until the June quarter 2008, reaching $42.0 billion in this quarter. Gross Operating Profits in the combined non-mining industries then fell to $37.3 billion in the March 2009 quarter. Between the March quarter 2009 and the June quarter 2015 gross operating profits trended upwards, reaching $47.8 billion in June quarter 2015. Since June quarter 2015, gross operating profits in the combined non-mining industries in Australia have trended downwards, falling to $45.3 billion in March quarter 2016. The mining industry recorded gross operating profits of $12.3 billion in March quarter 2006. Gross operating profits in the mining industry grew to $14.6 billion in the June quarter 2006, before trending downwards to $12.0 billion in the September 2007 quarter. Between September 207 and December quarter 2008 gross operating profits in the mining industry trended upwards, reaching $24.2 billion in December quarter 2008. Gross Operating Profits in the mining industry then fell to $13.7 billion in the September 2009 quarter. Between the September quarter 2009 and the September quarter 2011 gross operating profits trended upwards, reaching $25.7 billion in September quarter 2011. Between September quarter 2011 and December quarter 2012, gross operating profits trended downwards, reaching a low of $17.1 billion in December quarter 2012. Gross operating profits in the mining industry rallied between December 2012 and March quarter 2014, reaching $23.8 billion in March 2014. Since March 2014 gross operating profits in the mining industry in Australia have trended downwards, falling to $14.0 billion in March quarter 2016.

Quarter Mining ($ billion) Non-mining industries ($ billion)
March quarter 2006 12.3 30.5
June quarter 2006 14.6 n/a
September quarter 2007 12.0 n/a
June quarter 2008 n/a 42.0
December quarter 2008 24.2 n/a
March quarter 2009 n/a 37.3
September quarter 2009 13.7 n/a
September quarter 2011 25.7 n/a
December quarter 2012 17.1 n/a
March quarter 2014 23.8 n/a
June quarter 2015 n/a 47.8
March quarter 2016 14.0 45.3

Gross operating profits for select Australian industries

This chart shows the gross operating profits for Manufacturing, Wholesale, Finance, Construction, Transport, and Rental-Real Estate industries in Australia between March quarter 2006 and March quarter 2016. The Manufacturing industry recorded gross operating profits of $7.9 billion in March quarter 2006. Gross operating profits in the Manufacturing industry grew in an upwards trend until the June quarter 2008, reaching $10.3 billion in this quarter. In the March quarter 2016 gross operating profits in the Manufacturing industry were $6.1 billion. The Wholesale industry recorded gross operating profits of $4.1 billion in March quarter 2006. Gross operating profits in the Wholesale industry reached a high of $5.7 billion in the June quarter 2015. In the March quarter 2016 gross operating profits in the Wholesale industry were $5.4 billion. The Finance industry recorded gross operating profits of $2.0 billion in March quarter 2006. Gross operating profits in the Finance industry reached a high of $2.0 billion in the  December quarter 2010. In the March quarter 2016 gross operating profits in the Finance industry were $0.4 billion. The Construction industry recorded gross operating profits of $2.5 billion in March quarter 2006. Gross operating profits in the Construction industry reached a high of $5.3 billion in the March quarter 2015. In the March quarter 2016 gross operating profits in the Construction industry were $4.5 billion. The Transport industry recorded gross operating profits of $2.5 billion in March quarter 2006. Gross operating profits in the Transport industry reached a high of $5.5 billion in the  September  quarter 2015. In the March quarter 2016 gross operating profits in the Transport industry were $5.4 billion. The Rental-Real Estate industry recorded gross operating profits of $2.6 billion in March quarter 2006. Gross operating profits in the Rental-Real Estate industry reached a high of $5.3 billion in the September quarter 2015. In the March quarter 2016 gross operating profits in the Rental-Real Estate industry were $5.2 billion.

Quarter Manufacturing ($ billion) Finance ($ billion) Transport ($ billion) Wholesale ($ billion) Construction ($ billion) Rental-Real estate ($ billion)
March quarter 2006 7.9 2.0 2.5 4.1 2.5 2.6
June quarter 2008 10.3 n/a n/a n/a n/a n/a
December quarter 2010 n/a 2.0 n/a n/a n/a n/a
March quarter 2015 n/a n/a n/a n/a 5.3 n/a
June quarter 2015 n/a n/a n/a 5.7 n/a n/a
September quarter 2015 n/a n/a 5.5 n/a n/a 5.3
March quarter 2016 6.1 0.4 5.4 5.4 4.5 5.2

Source: Australian Bureau of Statistics (ABS), cat. no. 5609.0 – Housing finance, Australia

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Page last updated: 23 September 2016