Significant Crisis-caused Decline of Austrian Manufacturers' Earning Power in 2009. Cash Flow and Equity in 2009

In 2009 the cash flow to sales ratio in the Austrian manufacturing sector is expected to have declined significantly. Already 2008 was marked by a modest drop to 11.2 percent. For 2009 econometric estimates based on a panel of NACE 2-digit industry data indicate a cash flow to sales ratio of approximately 7.5 per-cent, equivalent to a reduction by a third over 2008. This can be explained by the impact of the crisis on the manufacturing sector which in 2009 experienced a real decline in value added by 11.7 percent and a decline in exports by 20 percent. Comparative international figures are available only up to 2008. They show a stable development in the equity ratio up to 2008. The average financial structure of Austrian manufacturers should have remained stable in 2009, despite the significant reduction in earning power.