PROFITABILITY AND EARNINGS
Total trading profit for the manufacturing industry in 2005-06 was $96.2b, an increase of $3.4b (4%) over the previous year. Of the seven industry subdivisions in which trading profit increased, the largest increase in absolute terms ($1.1b, or 9%) occurred in Petroleum, coal, chemical and associated product manufacturing.
Earnings before interest, tax, depreciation and amortisation (EBITDA) rose less strongly, by 2%, or $0.7b, which reflects a more mixed performance within the industry. EBITDA increased in five of the nine manufacturing subdivisions. Movements in EBITDA during 2005-06 ranged from an increase of 15% ($0.8b) in Petroleum, coal, chemical and associated product manufacturing to a decrease of 17% ($0.2b) in Textile, clothing, footwear and leather manufacturing. The other industries in which EBITDA declined in 2005-06 were Wood and paper product manufacturing (down 10%, or $0.2b), Food, beverage and tobacco manufacturing (down 3%, or $0.2b) and Non-metallic mineral product manufacturing (also down 3%, or $53m).
Three industry subdivisions recorded increases in operating profit before tax (OPBT), although total manufacturing reduced its OPBT marginally (down by $18m). Movements in OPBT compared to the estimates for 2004-05 ranged from an increase of 32% ($1.1b) in Petroleum, coal, chemical and associated product manufacturing to a decrease of 16% ($106m) in Textile, clothing, footwear and leather manufacturing. Metal product manufacturing recorded the largest absolute decrease in OPBT, of $678m.
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