The net sales of enterprises increased by a fifth in 2007

The yearly growth in net sales and total costs has remained stable around 20% in previous years. However, since 2006 the growth of personnel expenses exceeds the growth of net sales.

Compared to 2006, the net sales increased in all activities in 2007. The growth was mainly caused by the increase in the material and merchandise prices and personnel expenses. The growth in net sales was mainly influenced by the wholesale and retail trade, manufacturing and transport, storage and communication enterprises due to a bigger share of these fields of activity in gross net sales.

Compared to 2006, the growth of net sales was the biggest in mining, followed by the wholesale and retail trade and construction activities. In mining, the growth was mainly caused by the increase in the production of oil shale for generation of electricity. In construction and in the wholesale and retail trade activities the growth of net sales was mainly caused by price rise.

The growth of expenses and competition for the market reduced the profitability of enterprises. In 2007, the total profit of enterprises was 52 billion kroons. Compared to the two previous years, when the yearly growth of total profit was over 30%, the growth of total profit shows a noticeably decreasing tendency. In 2007, the growth of enterprises’ total profit was 13% compared to the previous year. The total profit of wholesale and retail trade enterprises, which have the biggest share in the enterprises’ total profit, increased by only a tenth compared the previous year (whereas in 2006, the growth of total profit was 39% compared to the time a year earlier). The growth of total profit slowed down in the majority of activities except in manufacturing, in mining, in forestry and in health and social work.

The investment activeness of enterprises slowed down, too. In 2007, the enterprises’ investments in tangible fixed assets totalled 41 billion kroons — by a tenth more than in 2006. Investments were mainly made in the construction, alteration of buildings and structures, and in the acquisition of machinery, equipment and inventory. The biggest investors were real estate, renting and business enterprises, manufacturing enterprises, and wholesale and retail trade enterprises with more than a half of the total investments of enterprises. The investments in the construction, alteration of buildings and structures, in the vehicles and in the acquisition of machinery, equipment and inventory increased compared to 2006. The investments in the acquisition of buildings and structures and in land decreased.

The value of financial leasing contracts concluded by enterprises was 9 billion kroons. Mainly vehicles were acquired by financial leasing.

In the 4th quarter of 2007, there were 44,500 enterprises in Estonia with 452,000 persons employed. Slowdown in the growth rate of net sales, which had began in the first half of the year, continued. In the fourth quarter of 2007, the net sales of enterprises totalled 171 billion kroons, which is in current prices 17 billion kroons more than in the 4th quarter of 2006. Compared to the 4th quarter of the previous year, the net sales increased in all activities. The enterprises’ investments in tangible fixed assets totalled 12 billion kroons, i.e. 520 million kroons more than in the 4th quarter of 2006. Investments were mainly made in the construction, alteration of buildings and structures, and in the acquisition of machinery, equipment and inventory.