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 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 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 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.