Overall sales of Canadian basic chemicals and resins increased by 10% in 2006 to $29 billion. Export sales, which represent over two-thirds of total industry sales, were up 6%. Sales to US markets were also up by 6% as were exports to offshore markets. The 2006 estimates are based on Statistics Canada data for the first nine months of 2006. Operating profits before interest, taxes and special write-offs in 2006 were $1.7 billion, down 7% from 2005. An important moderating factor for profitability was the continued high Canada-US exchange rate. Operating profit is expected to increase by 18% to $2.0 billion in 2007.
"Thousands of products essential to our everyday lives are made possible by chemicals. Sales and production are benefiting from the positive business cycle. Demand for our products is strong, but high energy prices combined with a high dollar are jeopardizing the future of manufacturing in Canada," said Canadian Chemical Producers' Association (CCPA) Chairman Larry MacDonald.