BDO: Manufacturing sector profits tumble
Rise in oil price to blame
The rising oil price has hit profits at all British manufacturing businesses,
according to BDO Stoy Hayward latest Industry Watch report.
BDO said the oil price rise had cost UK companies £11.3bn in the last six
months alone, after world oil prices hit a record high of $75 a barrel in late
The hardest hit industries were shipbuilding and the repair industry.
BDO calculated that higher oil prices will have cut profits in manufacturing
by 59% in the six months from November 2005.
David Hill, business restructuring partner at BDO Stoy Hayward in Scotland,
said: ‘UK industry’s dependence on oil is well-known, but it is shocking to
discover the huge sums of money that businesses must find when oil prices
increase and the effect this has on profitability.’