Canada Post segment reports $50-million loss before tax in second quarter

The Canada Post segment recorded a loss before tax of $50 million for the second quarter of 2019, as continuing declines in mail volumes were offset by parcels volumes growth that was more modest than the significant growth rates of a year ago.

Revenue decreased by $1 million in the second quarter compared to the same period of 2018, and fell by $27 million for the first two quarters compared to last year.

Key results for the Canada Post segment in Q2 2019 compared to Q2 2018

Parcels results

• Parcels revenue increased by $31 million or 6.7 per cent in Q2 2019.
• Volumes increased by 6 million pieces or 8.8 per cent.
• Domestic Parcels revenue and volumes increased by $32 million (8.8 per cent) and 5 million pieces (10.5 per cent), respectively.
• Parcels growth was modest compared to Q2 last year.

Transaction Mail results

• Volumes fell by 55 million pieces or 5.7 per cent.
• Revenue decreased by $16 million or 0.8 per cent.
• Domestic Lettermail volumes decreased by 48 million pieces (5.3 per cent) and revenue decreased by $15 million (0.7 per cent).
• The ongoing decline in mail volumes remains a significant business challenge.

Direct Marketing

• Total Direct Marketing revenue decreased by $11 million (2.2 per cent) and volumes decreased by 73 million pieces (4.1 per cent).

2019/08/23

Canada Post segment reports $23-million profit before tax in first quarter

The Canada Post segment recorded a profit before tax of $23 million in the first quarter of 2019 (January, February and March), mainly due to modest growth in its Parcels business.

However, increases in Parcels revenue and volumes were significantly lower than in the same period last year, in part because major customers made other delivery arrangements during the labour disruption last fall and into 2019.

The $23-million profit before tax in the quarter compares to a profit before tax of $68 million in the same period last year.

Key results for the Canada Post segment in Q1 2019 compared to Q1 2018

Parcels results

• Parcels revenue increased by $20 million or 3.4 per cent.
• Volumes increased by about 1 million pieces or 2.6 per cent.
• Domestic Parcels revenue and volume increased by $40 million (9.4 per cent) and 6 million pieces or 14.4 per cent, respectively.
• Increases were driven by major commercial customers, as well as continued growth in e-commerce.

Transaction Mail results

• In Q1 2019, volumes decreased by 68 million pieces or 8.1 per cent.
• Revenue decreased by $31 million or 4 per cent.
• Domestic Lettermail volumes decreased by 61 million pieces (7.6 per cent) and revenue by $22 million (3.1 per cent).
• The ongoing decline in mail volumes remains a significant business challenge.

Direct Marketing

• Direct Marketing revenue decreased by $17 million (6.3 per cent).
• Volumes decreased by 70 million pieces (6.2 per cent).
• Neighbourhood Mail revenue decreased by $6 million (6.2 per cent), while volumes decreased by 50 million pieces (6 per cent).
• Personalized Mail and Publications Mail revenue declined by $8 million and $3 million, respectively; volumes decreased by 14 million pieces and 6 million pieces, respectively.

2019/05/27

Canada Post segment posts $270 million loss for 2018

Canada Post recorded a loss before tax of $270 million for 2018. Three main non-recurring items factor into the result:

• Resolving pay equity for previous years, which cost the Corporation $280 million.
• The labour disruption in the fall, which created an estimated revenue shortfall of $195 million and resulted in a net impact of $135 million to the loss before taxes.
• And an update to workers compensation liabilities, which saved the company $48 million.

Had it not been for these non-recurring factors, Canada Post would have recorded a profit in 2018.

The segment’s $270 million loss is a decline of $346 million compared to 2017. Going forward, Canada Post estimates the significant pay and benefit improvements related to pay equity for Rural and Suburban Mail Carriers will cost $140 million a year.

Two important trends continued in 2018: the strong growth in parcels and the significant decline in mail volumes. Parcels generated 38 per cent of the segment’s revenue in 2018, compared to 34 per cent in 2017 and only 21 per cent in 2011. Canada Post remains the country’s leading parcel delivery company.

The results were released today, along with the 2018 Canada Post annual report, which is completely digital for the first time.

Key results for the Canada Post segment in 2018 compared to 2017:

Parcels

• Total Parcels volumes increased by 54 million pieces or 21.7 per cent.
• Revenue increased by $308 million or 13.6 per cent.
• For Domestic Parcels, volumes grew by 20 million pieces or 10.9 per cent, and revenue increased by $254 million or 15.3 per cent.

Transaction Mail

• Transaction Mail volumes fell by 187 million pieces or 6.2 per cent.
• Revenue decreased by $151 million or 5.5 per cent.
• Canadians mailed 2.4 billion (44 per cent) fewer pieces of mail in 2018 than in the peak year of 2006.

Direct Marketing

• Direct Marketing volumes fell by 169 million pieces or 3.9 per cent.
• Revenue decreased by $23 million or 2.4 per cent.
• Volumes and revenue were negatively affected by the labour disruption in the last quarter.

The annual report meets accessibility standards so that any visually impaired reader has access to the same information as a fully sighted reader. This allows text-to-voice software programs to:

• Read aloud in the correct pronunciation for French or English.
• Tab through the page by headers and subheaders, giving non-sighted readers a quick way to skim the page for information.
•  Read aloud the information in all infographics and tables according to accessibility best practices.
• Provide a description of what a photograph or illustration looks like.

2019/04/18

Canada Post segment reports $94-million loss before tax in third quarter

Canada Post recorded a $94-million loss before tax in the third quarter (July, August and September), mainly due to the costs of implementing an arbitrator’s final pay equity ruling on how much delivery employees in suburban and rural Canada are paid.

For the first three quarters of 2018, Canada Post is reporting a loss before tax of $266 million, compared to a profit before tax of $13 million for the same period in 2017. Without costs related to the pay equity ruling, we would have reported a small profit before tax for the first three quarters of 2018.

Pay equity costs and the impact of rotating strikes in October and November are major factors in Canada Post projecting a loss for 2018.

However, our Parcels business continues to grow strongly, and Canada Post remains the country’s leading parcel delivery company. We’ve grown our Parcels revenue year over year in 25 of the last 26 quarters.

Key results for the Canada Post segment in Q3 2018 compared to Q3 2017

Parcels

• Parcels revenue increased by $106 million or 21.2 per cent.
• Volumes increased by 14 million pieces or 23.3 per cent.
• Over the first three quarters of 2018, Parcels revenue increased by $322 million or 21.8 per cent, and volumes increased by 44 million pieces or 26.7 per cent when compared to the same period in 2017.

Transaction Mail

• Transaction Mail volumes have been eroding for 12 straight years.
• Volumes decreased by 35 million pieces or 4.6 per cent, while revenue decreased by $24 million or 3.6 per cent.
• For the first three quarters of 2018, Transaction Mail volumes decreased by 119 million pieces or 4.9 per cent and revenue decreased by $103 million or 4.6 per cent, compared to the same period in 2017.

Direct Marketing

• Direct Marketing revenue decreased by $5 million or 1.9 per cent.
• Volumes decreased by 44 million pieces or 3.9 per cent.
• Over the first three quarters of 2018, Direct Marketing revenue decreased by $9 million or 1.1 per cent and volumes decreased by 54 million pieces or 1.5 per cent when compared to the same period in 2017.

2018/11/28