Companies made 3.3 billion euros profit last year

According to the preliminary data of Statistics Estonia, in 2014 the total profit of the business sector was 3.3 billion euros, which was 3% more than the year earlier. The increase in the business sector’s total profit continued for the fifth year in a row.

Compared to 2013, the total profit increased in almost all economic activities. The biggest contribution to the growth in total profit was made by transportation and storage and information and communication activities. The growth in the profit of the business sector was negatively influenced mostly by construction and wholesale trade activities. The profit of manufacturing, which holds the largest share in the total profit of the business sector, increased 1% compared to 2013, mainly due to the decreased profits in the manufacture of electronics and fuel oil products.

In 2014, enterprises sold goods and services for 50.3 billion euros, which was the same as the year before. The turnover of trade enterprises, which have the biggest share in the total turnover of the business sector, decreased 1%, influenced mostly by a decrease in the turnover of wholesale trade. At the same time, the turnover of retail trade continued to grow. The turnover of manufacturing enterprises increased 4%.

Compared to 2013, the total costs of enterprises also stayed on the same level, while personnel expenses increased 8%. The number of persons employed and the number of hours worked increased 3% and 5%, respectively. The labour productivity of the business sector on the basis of value added amounted to an average of 22,300 euros per person employed in a year and was 4% higher than in 2013.

The investment activity of enterprises continued to decrease for the second year in a row. In 2014, enterprises invested 2.4 billion euros, which is about a tenth less than the year before. Similarly to 2013, the largest investments were made mainly in equipment and machinery and in the construction and alteration of buildings. The main investors were energy, manufacturing, agricultural and transportation and storage enterprises with more than a half of the total investments of enterprises. Compared to 2013, the investments in land, acquisition of buildings and computers increased. Other investments decreased, with the biggest decrease (21%) registered in investments in equipment and machinery.

In the 4th quarter of 2014, enterprises sold goods and services for 13.0 billion euros, which was 2% more than in the same period of 2013. In the 4th quarter of 2014, enterprises invested 768 million euros, i.e. 2% less than in the 4th quarter of 2013.

Diagram: Total profit of the business sector, 2002–2014

 

Source: Statistics Estonia

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