1 in 3 companies in Russia’s construction sector is loss-making

UrBC, Yekaterinburg, September 24, 2015. Rosstat reports 30.8% of companies in the Russian construction industry turned out to be incurring losses between January and July 2015; this exceeds the figures for a year earlier by 2.2%.

The share of loss-making businesses is also rising in the communications sector (up from 29.8% to 34%), communal housing services sector (up from 38.4% to 40.5%), and transportation sector (up from 39.7% to 41%). However, the overall share of non-profit-making companies went down by 0.7% compared with last year and amounted to 31.2% of all Russian businesses.

The overall balanced financial result (profit minus loss) of all companies, excluding sole traders, banks, insurance companies, and state-run organizations, amounted to 5,731bn RUR in current prices: 37,200 companies made 6,804.4bn RUR worth of profit and 16,900 companies incurred 1,073.4bn RUR worth of losses. A year earlier, the figure stood at 4,167.9bn RUR.

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