The oil and gas industry will have another highly profitable year, while construction profits are expected to double from 2003, says the Conference Board of Canada.
The board’s new Canadian Industrial Outlook will provide profitability forecasts for 10 major industries.
The first five – oil and gas, construction, food manufacturing, tourism, and aircraft and aircraft parts manufacturing – were released last week.
“Following a record year in 2003, profits in the oil and gas industry will remain high by historical standards, coming in at $13 billion this year because of high energy prices and strong production,” said Louis Thériault, associate director responsible for the outlook.
Profits in the construction industry are expected to grow from $1.4 billion in 2003 to $3 billion in 2004, and reach $4 billion in 2005.
In the food manufacturing industry, the Conference Board said that while revenues declined in 2003, costs dropped even more, producing $2.4 billion in profits.
Rising costs will reduce profitability in this industry to $2.2 billion in 2004, and profits will stabilize in the range of $2.2- $2.5 billion over the medium term.
Forecasts for pulp and paper, auto and auto parts, consumer products, telecommunications and wood products are to be published later, and all will be updated twice a year.
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