Monday, 5 May 2014

Canada Post had $193M operating loss in 2013

Canada Post 201312111

The Canada Post Group of companies had an operating loss of $193 million in 2013, with the sale of its Vancouver sorting station and other real estate helping to offset losses on mail delivery.
The postal service reports the volume of mail it delivers has fallen an average of 30 per cent per address since 2007.
It is in the midst of a multi-year restructuring geared toward handling a 50 per cent reduction in what it calls “transaction mail,” a term that covers letters, bills and statements. These items account for half its annual revenue.
Bills and statements are moving online and emails are replacing letters, reducing Canada Post’s revenue, while its costs remain relatively static, according to its annual report.
Its revenue from Canada Post,  Purolator, SCI Group and Innovapost, totalled $7.56 billion in 2013, down from on $7.52 billion in 2012. Net loss after tax was $29 million for the year, compared to $83 million the year before.
While the number of letters delivered dropped 4.8 per cent in 2013, the volume of parcels is up 6.9 per cent to seven million annually, a reflection of Canada Post’s efforts to grab the e-commerce market.
Building the parcel business is part of a five point plan released in December in an effort to bring Canada Post’s costs in line and adapt it to the new realities in the marketplace.

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