Bloomberg News

Summary of Fourth Quarter Margins for S&P 500 Stocks by Sectors

By Wendy Soong
March 02, 2012

Here are the profit margin results for the fourth quarter of 2011 for Standard & Poor’s 500 Index stocks, broken down into ten sectors and 24 industries.

Three types of margins were measured in this report: profit margin, operating margin and EBITDA margin. The definition of each margin is in the footnotes. The EBITDA margin excludes banking industry. 


================================================================================
                                   REPORTED           Margin Median             
                                     /TOTAL     Profit    Operating      EBITDA 
================================================================================
S&P500 MARGIN by SECTORS:        

CONSUMER DISCRETIONARY:               75/80       7.6%        12.7%       15.1%
CONSUMER STAPLES:                     41/42       7.7%        13.2%       16.9%
ENERGY:                               42/42       8.9%        21.2%       34.9%
FINANCIALS:                           81/81      13.6%        18.0%       49.1%
HEALTH CARE:                          52/52      11.0%        18.9%       24.0%
================================================================================
                                   REPORTED           Margin Median             
                                     /TOTAL     Profit    Operating      EBITDA 
================================================================================
INDUSTRIALS:                          60/61       8.0%        12.1%       16.1%
INFORMATION TECH:                     71/72      14.0%        18.8%       25.8%
MATERIALS:                            30/30       4.2%         9.0%       16.7%
TELECOM SVCS:                           7/7      -2.6%        11.3%       26.6%
UTILITIES:                            33/33       5.5%        14.8%       27.8%

TOTAL REPORTED                      492/500       8.8%        15.2%       22.3% 
   EX-FINANCIALS:                   411/419       8.4%        14.8%       21.1%

S&P 500 MARGIN by INDUSTRIES:    

CONSUMER DISCRETIONARY:          
  Automobiles & Components              5/5       6.9%         4.6%       10.0%
  Consumer Durables & Apparel         13/13       5.4%        10.9%       14.5%
  Consumer Services                   13/14       9.6%        14.9%       20.6%
  Media                               16/16       9.7%        18.6%       24.2%
  Retailing                           28/32       5.0%         8.3%       12.2%
================================================================================
                                   REPORTED           Margin Median             
                                     /TOTAL     Profit    Operating      EBITDA 
================================================================================
CONSUMER STAPLES:                
  Food & Staples Retailing              9/9       2.4%         4.2%        5.7%
  Food Beverage & Tobacco             26/27       9.7%        15.2%       18.8%
  Household & Personal Products         6/6       8.2%        17.0%       19.1%

FINANCIALS:                      
  Banks                               15/15      15.3%        24.7%          na
  Diversified Financials              27/27      14.3%        23.4%       41.6%
  Insurance                           22/22       8.2%        13.6%       17.1%
  Real Estate                         17/17      19.4%        12.8%       59.0%

HEALTH CARE:                     
  Health Care Equipment & Srvs.       31/31       8.0%        16.4%       20.8%
  Pharma., Biotech. & Life Sci.       21/21      14.1%        24.1%       31.7%

INDUSTRIALS:                     
  Capital Goods                       40/41       8.4%        11.9%       15.6%
================================================================================
                                   REPORTED           Margin Median            
                                     /TOTAL     Profit    Operating      EBITDA
================================================================================
INDUSTRIALS:                     
  Commercial & Professional Serv.     11/11       7.8%        16.4%       24.6%
  Transportation                        9/9       5.1%         8.4%       14.5%

INFORMATION TECH:                
  Semiconductors                      17/17      14.0%        18.2%       30.3%
  Software & Services                 31/32      14.6%        21.9%       28.7%
  Technology Hardware & Equip.        23/23       8.0%        13.3%       18.6%

ENERGY:                               42/42       8.9%        21.2%       34.9%

MATERIALS:                            30/30       4.2%         9.0%       16.7%

TELECOM SVCS:                           7/7      -2.6%        11.3%       26.6%
                                 
UTILITIES:                            33/33       5.5%        14.8%       27.8%

================================================================================
                                   REPORTED                                    
                                     /TOTAL    Higher         Same*       Lower
================================================================================
Y-O-Y COMPARISONS by SECTORS:    
                                           ----------Profit Margin----------
Consumer Discretionary:               75/80         22           22          31
Consumer Staples:                     41/42         12           11          18
Energy:                               41/42         16            1          24
Financials:                           80/81         37            3          40
Health Care:                          52/52         21            7          24
Industrials:                          59/61         29           15          15
Information Tech:                     71/72         23           10          38
Materials:                            30/30         11            2          17
Telecom Svcs:                           7/7          1            1           5
Utilities:                            33/33          9            6          18
                                                                               
Total Reported:                     489/500        181           78         230

                                           -------Operating Margin-------
Consumer Discretionary:               74/80         28           16          30
================================================================================
                                   REPORTED                                    
                                     /TOTAL    Higher         Same*       Lower
================================================================================
                                           -------Operating Margin-------
Consumer Staples:                     40/42         12           11          17
Energy:                               41/42         20            4          17
Financials:                           80/81         36            4          40
Health Care:                          52/52         26            7          19
Industrials:                          59/61         33           10          16
Information Tech:                     71/72         26            8          37
Materials:                            30/30         12            3          15
Telecom Svcs:                           7/7          1            1           5
Utilities:                            33/33         15            4          14

Total Reported:                     487/500        209           68         210

                                           ---------EBITDA Margin---------
Consumer Discretionary:               68/80         17           24          27
Consumer Staples:                     39/42          6           15          18
Energy:                               40/42         16            4          20
================================================================================
                                   REPORTED                                    
                                     /TOTAL    Higher         Same*       Lower
================================================================================
                                           ---------EBITDA Margin---------
Financials:                           41/81         15            3          23
Health Care:                          51/52         18           12          21
Industrials:                          59/61         29           18          12
Information Tech:                     70/72         25            9          36
Materials:                            30/30         13            7          10
Telecom Svcs:                           7/7          0            0           7
Utilities:                            33/33         14            6          13

Total Reported:                     438/500        153           98         187

Y-O-Y COMPARISONS by INDUSTRIES: 
                                           ----------Profit Margin----------
CONSUMER DISCRETIONARY:          
  Automobiles & Components              5/5          3            2           0
  Consumer Durables & Apparel         13/13          5            4           4
  Consumer Services                   13/14          2            2           9
================================================================================
                                   REPORTED                                    
                                     /TOTAL    Higher         Same*       Lower
================================================================================
                                           ----------Profit Margin----------
CONSUMER DISCRETIONARY:          
  Media                               16/16          7            3           6
  Retailing                           28/32          5           11          12
                                                                   
CONSUMER STAPLES:                
  Food & Staples Retailing              9/9          1            6           2
  Food Beverage & Tobacco             26/27          9            5          12
  Household & Personal Products         6/6          2            0           4
                                                                   
FINANCIALS:                      
  Banks                               15/15          7            2           6
  Diversified Financials              27/27         10            0          17
  Insurance                           22/22         10            1          11
  Real Estate                         16/17         10            0           6


================================================================================
                                   REPORTED                                    
                                     /TOTAL    Higher         Same*       Lower
================================================================================
                                           ----------Profit Margin----------
HEALTH CARE:                                          
  Health Care Equipment & Srvs.       31/31         12            5          14
  Pharma., Biotech. & Life Sci.       21/21          9            2          10

INDUSTRIALS:                     
  Capital Goods                       39/41         21            8          10
  Commercial & Professional Serv.     11/11          6            2           3
  Transportation                        9/9          2            5           2

INFORMATION TECH:                
  Semiconductors                      17/17          2            1          14
  Software & Services                 31/32         16            6           9
  Technology Hardware & Equip.        23/23          5            3          15

ENERGY:                               41/42         16            1          24

================================================================================
                                   REPORTED                                    
                                     /TOTAL    Higher         Same*       Lower
================================================================================
                                           ----------Profit Margin----------
MATERIALS:                            30/30         11            2          17

TELECOM SVCS:                           7/7          1            1           5
                                 
UTILITIES:                            33/33          9            6          18

                                           -------Operating Margin-------
CONSUMER DISCRETIONARY:          
  Automobiles & Components              5/5          2            1           2
  Consumer Durables & Apparel         13/13          7            1           5
  Consumer Services                   13/14          3            3           7
  Media                               16/16          8            3           5
  Retailing                           27/32          8            8          11
                                                                   
CONSUMER STAPLES:                
  Food & Staples Retailing              9/9          2            7           0
================================================================================
                                   REPORTED                                    
                                     /TOTAL    Higher         Same*       Lower
================================================================================
                                           -------Operating Margin-------
CONSUMER STAPLES:                
  Food Beverage & Tobacco             25/27          9            3          13
  Household & Personal Products         6/6          1            1           4
                                                                   
FINANCIALS:                      
  Banks                               15/15          9            0           6
  Diversified Financials              27/27          9            1          17
  Insurance                           22/22         10            1          11
  Real Estate                         16/17          8            2           6

HEALTH CARE:                                          
  Health Care Equipment & Srvs.       31/31         14            7          10
  Pharma., Biotech. & Life Sci.       21/21         12            0           9

INDUSTRIALS:                     
  Capital Goods                       39/41         24            8           7
================================================================================
                                   REPORTED                                    
                                     /TOTAL    Higher         Same*       Lower
================================================================================
                                           -------Operating Margin-------
INDUSTRIALS:                     
  Commercial & Professional Serv.     11/11          4            1           6
  Transportation                        9/9          5            1           3

INFORMATION TECH:                
  Semiconductors                      17/17          1            1          15
  Software & Services                 31/32         18            4           9
  Technology Hardware & Equip.        23/23          7            3          13

ENERGY:                               41/42         20            4          17

MATERIALS:                            30/30         12            3          15

TELECOM SVCS:                           7/7          1            1           5
                                 
UTILITIES:                            33/33         15            4          14
================================================================================
                                   REPORTED                                    
                                     /TOTAL    Higher         Same*       Lower
================================================================================
                                           ---------EBITDA Margin---------
CONSUMER DISCRETIONARY:          
  Automobiles & Components              5/5          3            1           1
  Consumer Durables & Apparel         13/13          2            3           8
  Consumer Services                   13/14          2            5           6
  Media                               13/16          5            4           4
  Retailing                           24/32          5           11           8
                                                                   
CONSUMER STAPLES:                
  Food & Staples Retailing              9/9          0            8           1
  Food Beverage & Tobacco             24/27          5            5          14
  Household & Personal Products         6/6          1            2           3
                                                                   
FINANCIALS:                      
  Banks                                0/15         na           na          na
  Diversified Financials              22/27          7            2          13
  Insurance                            3/22          2            0           1
================================================================================
                                   REPORTED                                    
                                     /TOTAL    Higher         Same*       Lower
================================================================================
                                           ---------EBITDA Margin---------
FINANCIALS:                      
  Real Estate                         16/17          6            1           9

HEALTH CARE:                                          
  Health Care Equipment & Srvs.       30/31          9            9          12
  Pharma., Biotech. & Life Sci.       21/21          9            3           9

INDUSTRIALS:                     
  Capital Goods                       39/41         23           10           6
  Commercial & Professional Serv.     11/11          5            4           2
  Transportation                        9/9          1            4           4

INFORMATION TECH:                
  Semiconductors                      16/17          1            1          14
  Software & Services                 31/32         14            5          12
  Technology Hardware & Equip.        23/23         10            3          10
================================================================================
                                   REPORTED                                    
                                     /TOTAL    Higher         Same*       Lower
================================================================================
                                           ---------EBITDA Margin---------
ENERGY:                               40/42         16            4          20

MATERIALS:                            30/30         13            7          10

TELECOM SVCS:                           7/7          0            0           7
                                 
UTILITIES:                            33/33         14            6          13
================================================================================

Profit Margin: A company divides its net income into its net sales to measure its profitability. Operating Margin: A determination of the expense margin, operating margin is operating income as a percentage of net sales. Operating income is equal to net sales minus cost of goods sold minus selling, general, and administrative expenses. EBITDA Margin: The earnings before interest, taxes, depreciation and amortization divided by sales.

* -- Same category includes the margin differences between +0.5 percent and -0.5 percent.

To contact the reporter on this story: Wendy Soong in New York at csoong@bloomberg.net

To contact the editor responsible for this story: Alex Tanzi at at atanzi@bloomberg.net

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