The article analyses the specifics of the functioning of industrial enterprises and examines the problems of growth of profitability in modern economic conditions. The important role of industry for the development of the state economy has been determined. The level of the unprofitableness of industrial enterprises, expenses of operational activity has been analysed. For a more informative idea of the current state of operational activity of industrial enterprises in Ukraine, an analysis of operational profitability indicators for a certain period has been conducted. To determine the reasons for changes in profitability and the identification of factors of influence, a factor analysis of the profitability of production has been conducted on an example of JSC “Motor Sich.” The results of the analysis have been grouped by factors of influence on the level of profitability of operating activities of industrial enterprises. The main factors of influence include: low competitiveness of enterprises; deterioration in the quality of industrial products; wear of equipment; high level of tax pressure; high lending rates; increase in the cost price of products and decrease sales volumes; shortage of working capital and fixed assets; change in the share of profit for 1 hryvnia of sold products. It has been determined that decrease of profitability of operational activity of mechanical engineering enterprises is caused by a number of reasons: absence of investment capital; mismatch of production capacities of market potential and low level of their loading; rise in price of external financial resources; decrease in demand for products; the unity of the production process; failures in the supply of raw materials and materials; lack of financial support; ineffectiveness of the marketing department; rise in price of external financial resources. It has been determined that the decrease of operating profitability indicators of the enterprises of mechanical engineering of Zaporizhzhia region is due to: loss of market sales; high material production of machine building products; depreciation of fixed assets; decrease in the level of solvency of commodity producers; decrease of output; reduction of domestic demand for domestic products; an increase in the level of debt; unsecured high-quality materials. According to the results of the research of indicators of profitability of operational activity of enterprises of the industrial sector, ways of increasing the analysed indicators have been formed: withdrawal from production of low-profitable products; concentration of production on highly profitable products; revision of tax rates for industrial enterprises; attraction of foreign investors; reconstruction of material and technical base of production and introduction of new technologies; introduction of effective financial management.