U.S. Corporate Profits Sink 5.9%, Biggest Drop Since 2008

Adjusted pretax corporate profits fell 5.9% in the first quarter and declined for the second quarter in a row for the first time since the middle of the 2007-2009 recession, the U.S. government reported Friday. By the same measure, profits had fallen by 1.4% in the fourth quarter. Adjusted profits decreased by $125.5 billion in the first quarter to mark the biggest drop in seven years, the Commerce Department said Friday. Profits had fallen by $30.4 billion in the final three months of 2014. Profit figures are adjusted for depreciation and the value of inventories.