The Canada Post segment is reporting a $242-million loss before tax in the second quarter, which ended June 30, 2018. This is mainly in recognition of estimated costs associated with adjusting how RSMC employees are paid.
Discussions are under way with the Canadian Union of Postal Workers to reach an agreement to resolve the issue of pay equity for RSMC. As we continue to work towards a meaningful resolution, we have an obligation to reflect the estimated financial impact in the corporate financial results.
The business continues to see strong growth in e-commerce. In the second quarter, we remained the country’s leading parcel delivery company. We have grown Parcels revenue year over year in 24 of the last 25 quarters – dating back to 2012.
Key results for the Canada Post segment in Q2 2018 compared to Q2 2017
Parcels revenue grew by $106 million or 19.6 per cent
Parcels volumes increased by 13 million pieces or 24.1 per cent
Domestic Parcels continued to grow strongly, as revenue increased by $81 million or 20.5 per cent and volumes grew by 6 million pieces or 14.5 per cent.
Transaction Mail revenue decreased by $33 million or 6 per cent
Volumes decreased by 34 million pieces or 5.9 per cent
The ongoing decline in mail volumes remains a significant challenge.
Revenue fell by $1 million or 2 per cent
Volumes grew by 13 million pieces but fell by 0.6 per cent when adjusted for trading days
Revenue for Neighbourhood Mail increased by $4 million or 1.3 per cent while volumes increased by 27 million pieces or 1.3 per cent.
(All revenue amounts for 2017 were restated as a result of new accounting standards.)