CANADA POST

CANADA POST

April 28, 2008 16:20 ET

Canada Post Manages Thirteenth Consecutive Year of Profitability

OTTAWA, ONTARIO--(Marketwire - April 28, 2008) - In its 2007 Annual Report tabled today in Parliament, Canada Post Corporation reported its thirteenth consecutive year of profit for its Group of Companies. The Corporation recorded a consolidated net income of $54 million for the fiscal period ended December 31, 2007.

"The continued dedication of the 70,000 employees at Canada Post has enabled the corporation to maintain an impressive record of profitability", said the Honourable Lawrence Cannon, the Minister Responsible for Canada Post. "I am confident that the on-going efforts of the management and employees at Canada Post will ensure Canadians will continue to receive the service they have come to expect."

The return on equity for 2007 was 3.8 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 $22 million to the Government of Canada in 2008. The total dividends paid over the last five fiscal periods amount to $267 million.

"I am pleased with the results of the corporation during 2007," said Marc Courtois, Chairman of the Board of Directors. "I am convinced that we have the committed management team and dedicated employees needed to continue to operate successfully."

Canada Post Corporation's consolidated net income of $54 million was down 54.3 per cent from $119 million in 2006. Consolidated revenues reached $7.5 billion, an increase of 2.5 per cent trading day adjusted or $210 million over the comparative period a year ago, while the cost of operations increased by 3.2 per cent to $7,346 million. Canada's population growth added some 200,000 new points of delivery during the year.

On a consolidated basis, Canada Post Corporation processed 11.8 billion pieces during the 12-month period, even as Transaction Mail volumes decreased by 1.6% year over year adjusted for trading days. In 2007, 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, "As a Modern Post, our people are the heart and soul of our company; their commitment to deliver the best products and services to Canadians is truly the foundation of our success. Looking forward, we will continue to strive to create a successful, sustainable future for our employees, our customers and all Canadians. It is clear, however, that 2008 will be equally as challenging as 2007, if not more so."


Highlights of the 2007 Annual Report

Canada Post Group of Companies:

- Consolidated revenue from operations reached $7,500 million, an increase of $210 million, or 2.5% from the comparative period.

- Consolidated net income for the fiscal period ended December 31, 2007 was $54 million, a decrease of 65 million from 2006.

- Consolidated net income before taxes was $160 million, a decrease of $6 million from the comparative period.

- Consolidated cost of operations for fiscal 2007 totalled $7,346 million, an increase of $230 million or 3.2% over the $7,116 million recorded in the prior year.

- Revenues from Transaction Mail totalled $3,209 million; Parcels revenues totalled $2,736 million; Direct Marketing revenues were $1,404 million.

- Return on equity ratio was 3.8%, down from 8.4% in 2006.

- Canada Post Corporation processed 11.8 billion pieces in 2007.

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

Segmented Highlights:

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

- Canadians have ranked Canada Post as the most trusted federal institution.

- The Canada Post segment represents 79.4% of the corporation's consolidated revenue.

- Canada Post's revenue from operations increased 1.7%, from $5,831 million in 2006 to $5,955 million, in 2007.

- Canada Post's income before tax was $78 million for 2007, a decrease of $21 million from the comparative period.

- As a result of its financial performance last year, Canada Post declared and will pay a dividend of approximately $22 million to the Government of Canada in 2008. A $48 million dividend was paid to the shareholder in 2007.

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

- Transaction mail volumes decreased by 1.6% in 2007.

- The cost of salaries increased $132 million, or 4.3%, to reach $3,221 million in 2007.

- Employee benefit costs decreased by $42 million, or 4.7%, to reach $843 million in 2007.

Purolator

- Purolator generated net operating revenue of $1,448 million in 2007, an increase of $101 million over the $1,347 million achieved in 2006.

Logistics

- The Logistics segment includes the consolidated financial results of SCI Logistics and Intelcom. The 2007 financial results improved by $12 million when compared to the previous year.

All Other Segment

- The All Other Segment includes the financial results of Innovapost and CPIL which generated $175 million in revenue, a decline of $2 million from 2006.

Contact Information

  • Canada Post
    Media Relations
    613-734-8888