Canada industrial profits seen over 20 percent lower

OTTAWA (Reuters) - The recession has cut profits by more than 20 percent across several Canadian industries, particularly wholesale trade and transportation, although most are expected to recover next year, the Conference Board of Canada said on Monday.

The conference board released a five-year outlook for six different industries, highlighting the impact of reduced demand and lower prices on their bottom lines.

At the same time, however, cost pressures are easing due to lower input prices and limited wage growth, said Michael Burt, associate director of industrial economic trends at the Ottawa-based organization.

Here is the 2009 profit outlook for each industry:

- Transportation and warehousing: profits down 29 percent from 2008 levels to C$5.2 billion ($4.9 billion). Robust recovery seen once the recession is past.

- Wholesale trade: profits down 23 percent to C$11.2 billion. Profit growth to resume in 2010.

- Retail trade: profits fall 32 percent in 2009 to C$8.6 billion, but unlike other industries the sector benefits from strong currency. Outlook to improve as employment and income recover.

- Food services: profits down 32 percent in 2009 to C$826 million. Lower-cost establishments held up well.

- Accommodation: Profits down 8 percent in 2009 to C$500 million. Recovery could be shaky due to H1N1 outbreak and impact of strong Canadian dollar on prices for foreigners.

- Food and beverage manufacturing: Profits to rise 3 percent to C$3.4 billion. Sector has been largely recession-proof.

($1=$1.06 Canadian)

(Reporting by Louise Egan; editing by Peter Galloway)