CANADA POST

CANADA POST

May 08, 2009 08:57 ET

Canada Post Announces Slim Profit for 2008

OTTAWA, ONTARIO--(Marketwire - May 8, 2009) - Canada Post Corporation reported a slim profit in its 2008 annual report, which was tabled in Parliament. The Corporation recorded a consolidated net income of $90 million on revenues of $7.7 billion. To remain profitable and meet its targets, Canada Post had to undertake a series of cost-cutting measures that enabled the Corporation to achieve a narrow operating margin of 1.8 per cent. Without these extraordinary efforts to reduce costs, the Canada Post segment (unconsolidated) would have lost more than $150 million.

The current economic crisis has not spared Canada Post. The fiscal period ending December 31, 2008, was one of the most challenging since the early 1990s for the 28-year-old Crown corporation. In spite of these challenges, Canada Post met the on-time service performance target of 96 per cent for the on-time delivery of Lettermail.

"I thank the Corporation's dedicated and determined team of 72,000 employees for helping Canada Post meet its service promise to Canadians and to remain profitable in 2008," said Rob Merrifield, Minister of State (Transport), responsible for Canada Post. "I am convinced that we have the committed management team and dedicated employees we need to continue to operate during this difficult economic downturn," added Marc A. Courtois, chairman of Canada Post's Board of Directors.

The strong financial performance of Canada Post's subsidiaries, Purolator Courier Ltd. and SCI Group Inc., were largely responsible for the Corporation achieving income before taxes of $161 million. Canada Post's cost of operations increased by 5.6 per cent, to $7.6 billion. Total volume for 2008 remained stagnant at 11.8 billion, a situation attributable in part to a 2 per cent decrease in transaction mail items.

"I would like to acknowledge the tremendous efforts of Canada Post employees and all our partners for last year's results," said the company's president and CEO Moya Greene. "Also, I would like to thank all of our loyal customers, who have other options, but continue to choose Canada Post to connect with their customers and business partners. We are committed to maintaining this trust with continued quality service for all Canadians."

Canada Post's annual report is available online at canadapost.ca.


Highlights of the 2008 Annual Report

The Canada Post Group:

- Consolidated revenue from operations reached $7,729 million, an increase of $255 million, or 3% from 2007.

- Consolidated net income for the fiscal period ended December 31, 2008 was $90 million, an increase of 36 million from the previous year.

- Consolidated net income before taxes was $161 million, an increase of $1 million from 2007.

- Consolidated cost of operations for fiscal 2008 totalled $7,594 million, an increase of $248 million over the $7,346 million recorded in the previous year.

- Return on equity ratio was 6.1%, up from 3.8% in 2007.

- The Canada Post Group processed 11.8 billion pieces in 2008.

- With 72,000 employees, The Canada Post Group is one of the largest employers in Canada.

- The Canada Post Group spends more than $2.8 billion annually on goods and services, thereby supporting an additional 30,000 jobs.


Segmented Highlights:

Canada Post

- The Canada Post segment represents approximately 80 % of the Corporation's consolidated revenue.

- Canada Post's revenue from operations increased from $5,955 million in 2007 to $6,108 million in 2008.

- Revenue from Transaction Mail totalled $3,234 million; Parcels revenue totalled $1,311 million; Direct Marketing revenue was $1,431 million.

- Canada Post's income before taxes was $66 million for 2008, a decrease of $12 million from the previous year.

- Canada Post paid a dividend of $22 million to the Government of Canada in 2008.

- Lettermail on-time service performance met the corporate target of 96%.

- Transaction mail volumes decreased by 2% in 2008.

- Parcels volumes decreased by 8.3% in 2008.

- Direct Marketing volumes rose by 0.9% in 2008.

- Canada Post reduced planned expenditures by $150 million. This was on top of already budgeted costs savings of $100 million, of which $90 million was achieved.

- Canada Post was named as one of the Top 100 Employers in Canada for a third consecutive year in Maclean's magazine.

- In 2008 Canada Post raised more than $1 million for mental health, the company's cause of choice. The corporation also supports literacy, the Canada Post Freestyle Ski Team and the United Way.

Purolator

- Purolator generated revenue of $1,563 million in 2008, an increase of $115 million over the $1,448 million achieved in 2007.

Logistics

- The Logistics segment accounts for revenue of $156 million, which is $10 million better than the previous year.

Contact Information

  • Canada Post
    Media Relations
    613-734-8888