Corporate operating profits hit another all-time high in 2006, bolstered by soaring commodity prices, high employment levels and low interest rates, Statistics Canada reported today.

Corporations earned operating profits of $285.6 billion, 11.5% higher than the previous record of $256 billion set in 2005.

The improvement was broadly based. Profits in the non-financial industries advanced 9.9% to $204.3 billion and those in the financial industries gained a solid 15.8% to $81.3 billion, StatsCan said.

The top contributors to non-financial operating profits were energy-based industries, construction and real estate. Companies engaged in oil and gas extraction and support activities, utilities operators, construction, petroleum and coal product manufacturers and real estate earned combined profits of $75.3 billion and accounted for more than one-third of the non-financial operating profits.

Thriving demand for residential and non-residential space, especially in Western Canada, lifted the value of building permits to new highs. The construction industry, buoyed in part by energy-related infrastructure projects, recorded robust gains with operating profits increasing 36.1% to $11.5 billion. Profits in the real estate industry grew at a more modest rate of 8.6%, reaching $9.1 billion.

Higher metal prices, driven by strong global demand (especially from China), boosted operating profits for primary metal manufacturers to $6.2 billion, up 58.6% over 2005. Mining industry profits increased 28.8% to $4.9 billion.

Robust economic activity also drove profits higher for companies involved in transportation, warehousing and pipeline operations. Transportation, warehousing and pipeline profits combined were up 15.8% to $12.5 billion in 2006.

High employment levels and low interest rates spurred consumer spending, bolstering operating profits for the retail and wholesale industries. Operating profits for retailers rose 13.8% to $18.8 billion while wholesalers posted a gain of 18% to $17.4 billion.

Low interest rates and high employment levels translated into solid consumer and business spending and profitability for banking, financial services and wealth management enterprises.

Operating profits for the financial industries climbed 15.8% to an all-time high of $81.3 billion, surpassing the previous high set in 2005.

Corporations involved in securities and commodity exchanges and other financial investment activities had an outstanding year. Operating profits increased for the fourth consecutive year, rising 21.6% in 2006 to $20.2 billion.

After retreating 4.9% in 2005, operating profits for the insurance industries surged 21.8% to $14.3 billion in 2006, surpassing the previous peak of $12.3 billion established in 2004. Property and casualty insurance carriers led the way as profits jumped 26.9% to $7.7 billion.