For the first time since the outbreak of the economic crisis late 2008, the number of businesses (excluding financial companies) making higher profits was larger than the number of businesses reporting shrinking profits. The profitability growth was most notable in the sector mineral extraction. Profitability has improved significantly among large companies.
Profitability in the non-financial sector
Most substantial improvement in sector mineral extraction
In the fourth quarter of 2010, nearly 20 percent of non-financial businesses in the Netherlands reported higher profits compared to the previous quarter. In 64 percent of cases, profits were stable and more than 16 percent of non-financial businesses reported declining profits. For the first time since the outbreak of the financial crisis, profits were higher than in the preceding quarter.
Profits improved most rapidly in the sector mineral extraction. On balance, 33 percent of companies engaged in extraction of minerals posted higher profits, but profits slumped in the construction sector, which is still struggling with the effects of the economic crisis.
Profitability by sector, 4th quarter 2010
Only large companies generate higher profits
Profitability improved most in the category large companies. On balance, 3 percent of companies employing 50 to 100 persons generated higher profits versus 10 percent of companies employing 100 or more persons. In the category small companies (employing no more than 50 persons) profits declined.
Profitability by number of employees, 4th quarter 2010