May 01, 2007 16:34 ET

Canada Post Makes it an Even Dozen for Consecutive Years of Profitability

OTTAWA, ONTARIO--(CCNMatthews - May 1, 2007) - In its 2006 Annual Report tabled today in Parliament, Canada Post Corporation reported its twelfth consecutive year of profit for its Group of Companies. The Corporation recorded a consolidated net income of $119 million for the fiscal period ended December 31, 2006.

"Canada Post's ongoing record of profitability is thanks to the dedication and determination of the more than 70,000 employees that strive to meet the needs of their customers day in and day out," said the Honourable Lawrence Cannon, the Minister Responsible for Canada Post. "Despite the many challenges the company faces in the coming years, I'm confident that the company's employees have the best interests of Canadians at heart and will continue to do their utmost to maintain our confidence and trust in their service."

The return on equity for 2006 was 8.4 per cent. The corporation will make an annual dividend payment at the rate of 40 per cent of net income to its shareholder and is expecting to pay a dividend of approximately $48 million to the Government of Canada in 2007. The total dividends paid over the last five fiscal periods amount to $236 million.

"The financial success has been accomplished by marked improvements in customer satisfaction and service performance results that reflect the commitment and dedication of Canada Post's employees and management team," said Gordon Feeney, Chairman of the Board of Directors. "We must continue to evolve into a dynamic organization that's prepared and able to meet the communications needs of Canada and all Canadians."

Canada Post Corporation's consolidated net income of $119 million was down 40.1 per cent from $199 million in 2005 while the cost of operations increased by 6.5 per cent to $7,116 million from the comparative period.

Consolidated revenues reached $7.3 billion, an increase of 4.6 per cent or $320 million over the comparative period a year ago. Canada's population growth added some 240,000 new points of delivery during the year, while the average revenue-generating items delivered to each address has begun to decline.

On a consolidated basis, Canada Post Corporation processed 11.6 billion pieces during the 12-month period. In 2006, Canada Post met the corporate on-time service performance target of 96 per cent for the delivery of Lettermail.

Moya Greene, President and Chief Executive Officer for Canada Post said, "I believe that when Canadians look back at 2006, they will see it as a pivotal year for Canada Post - one that laid the groundwork for necessary renewal. Earning our customers' business, loyalty and trust, and meeting their changing needs, was a priority for all the lines of business last year. We are making a broad effort to change the culture at Canada Post, and to engage all of our employees in the future success of the company.

Canada Post's Annual Report is available at

Highlights of the 2006 Annual Report

Canada Post Group of Companies:

- Consolidated revenue from operations reached $7,300 million, an increase of $320 million, or 4.6% from the comparative period.

- Consolidated net income for the fiscal period ended December 31, 2006 was $119 million, a decrease of $80 million from 2005.

- Consolidated net income before taxes was $166 million, a decrease of $116 million from the comparative period.

- Consolidated cost of operations for fiscal 2006 totalled $7,116 million, an increase of $435 million or 6.5% over the $6,681 million recorded in the prior year.

- Revenues from Transaction Mail totalled $3,204 million; Parcels revenues totalled $2,607 million; Direct Marketing revenues were $1,307 million.

- Return on equity ratio was 8.4%, down from 15% in 2005.

- Canada Post Corporation processed 11.6 billion pieces in 2006.

- 71,869 full and part-time employees, making the Corporation the sixth largest employer among businesses in Canada.

Segmented Highlights:

Canada Post

- Canada Post was named as one of the Top 100 Employers in Canada for 2007 in Maclean's magazine.

- The Commerce-Leger Marketing survey ranked Canada Post third of 150 most-admired businesses in Quebec.

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

- Canada Post's revenue from operations increased 4.4%, from $5,587 million in 2005 to $5,831 million, in 2006.

- Canada Post's income before tax was $99 million for 2006, a decrease of $151 million from the comparative period.

- As a result of its financial performance last year, Canada Post declared and will pay a dividend of approximately $48 million to the Government of Canada in 2007. An $80 million dividend was paid to the shareholder in 2006.

- Lettermail on-time service performance score, at 96.4%, topped the corporate target of 96%.

- Despite a strong economy, the Lettermail product was essentially flat in 2006.

- The cost of salaries increased $155 million, or 5.3%, to reach $3,089 million in 2006.

- Employee benefit costs increased by $161 million, or 22.1%, to reach $885 million in 2006. This increase was primarily driven by escalating retirement health benefit expense, pension expense, and a reduction in transitional funding from the Government of Canada.


- Purolator generated net operating revenue of $1,347 million in 2006, an increase of $93 million over the $1,254 million achieved in 2005.


- The Logistics segment includes the financial results of Progistix and Intelcom. The 2006 financial results improved by $6 million, but the segment remained in a loss position of $1 million.

All Other Segment

- The All Other Segment includes the financial results of Innovapost, CPIL and epost up to October 31, 2006. There is nothing of significance to report.

Contact Information

  • Canada Post
    Media Relations