(November 15 – 11:30 ET) –
Statistics Canada is reporting that
large non-financial business
profitability fell during 1997-1998.
That the first drop since since the
1991 recession.


The average returns of large
firms – those with more than $75
million in annual revenues –
slipped to 6.6% in 1998 from 7.2%
in 1997. “This coincided with
slower economic growth in Canada
during the last half of 1998 as
well as lower commodity prices,
particularly world oil prices,”
says Statscan.


Profitability among medium-sized
firms, those with revenues between
$5 million and $75 million, fell
from 4.3% to just 4.0% in
1998. The return for small firms
was 5.6%, up from 4.2% during the
previous year.


On a sector basis, manufacturing
led the way among the large firms,
posting a return on capital
employed of 9.3% in 1998. This was
closely followed by the
transportation, storage,
communications and utilities
sectors. Mining was very weak,
with returns of just 3.1% last year.


In medium and large firms,
logging was the most profitable
goods-producing business, followed
closely by printing and publishing,
and the rubber products
manufacturing industry. Ironically
the least profitable business was
pulp and paper, which managed an
average annual three-year return on
capital just 1.2%.

-IE Staff

For more please see:


www.statcan.ca