By Judy McKinnon

Operating profits at Canadian firms jumped 14% in the third quarter from the second, Statistics Canada said Thursday, reversing four straight quarters of declines amid a sharp increase in profits in the finance and insurance industries.

Compared with a year earlier, third-quarter operating profits edged down 1.1%.

Canadian companies earned 80.7 billion Canadian dollars ($59.7 billion) in the third quarter, Statistics Canada said, with operating profits at financial-services firms up 33% from the previous quarter. Nonfinancial firms recorded a 6.6% increase.

Operating profits were up 27% in manufacturing, helped by growth in petroleum and coal-coal products manufacturing which rebounded following outages related to wildfires in Albertain May.

The oil and gas extraction industry continued to be hurt by low commodity prices, however, posting an operating loss of C$3.8 billion in the quarter compared with a $4.1 billion loss in the second quarter. The latest loss marks the seventh-consecutive quarterly operating loss for the sector, according to TD Economics.

(END) Dow Jones Newswires

November 24, 2016 09:34 ET (14:34 GMT)

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