Subsidiaries
ESTABLISHING CONNECTIONS AND OFFERING GLOBAL SOLUTIONS ARE ESSENTIAL TO THE GROWTH OF ANY SUCCESSFUL BUSINESS. CANADA POST’S SUBSIDIARIES SUPPORT THE GROUP IN THIS ENDEAVOUR.
Purolator Courier Ltd.
Purolator Courier is Canada’s leading overnight courier company. Purolator’s focus is the business-to-business market while Canada Post concentrates on the business-to-consumer market.
The Mississauga-based company, which accounted for 19% of The Canada Post Group’s revenue, or $1.6 billion, in 2008, employs 11,500 people and processes more than 5.5 million items each week. It has more than 4,000 vehicles and Canada’s largest dedicated air express fleet. Purolator’s network consists of more than 140 operations locations, 140 shipping centres, 550 authorized shipping agents and 350 drop boxes. Purolator serves more than 215 countries worldwide.
Canada Post owns a 90.96% share of Purolator, the Group’s most profitable subsidiary. Over the past five years, Purolator has increasingly contributed to the profitability of The Canada Post Group.
In 2008, the Purolator segment contributed $91 million to consolidated income before income taxes, an increase of $7 million over the previous year. Revenue also grew by 7.4%, due primarily to increases in revenue per shipment. In spite of the current global economy, 2008 was a good year for Purolator. Its annual volumes grew marginally.
Nevertheless, Purolator experienced a sharp volume decline in the last few months of 2008, a situation that is expected to continue well into 2009. Faced with this new reality, Purolator intends to be even more aggressive in reducing costs and easing the impact of the market’s declining revenue.
SCI Group Inc.
SCI Group Inc. (formerly SCI Logistics Inc.) supports the logistics requirements of its customers as well as those of Purolator and Canada Post. Owned at 98.75% by Canada Post, SCI is one of the largest Canadian-owned logistics companies and is the parent organization of Progistix-Solutions Inc., Assured Logistics Inc., AMG Logistics Inc. and First Team Transport Inc. SCI’s financial performance improved significantly in 2008, with income before income taxes of $14 million, up from $8 million in 2007. Revenue increased by 6.4%, to $156 million.
Innovapost Inc.
Innovapost Inc., a joint venture between Canada Post (51%) and CGI Information Systems and Management Consultants Inc. (49%), is responsible for the development, maintenance and operation of The Canada Post Group’s computing and information systems. In 2008, Innovapost continued to assist its clients in converting savings in technology operating costs to investment in new technology. Innovapost revenues are heavily dependent upon the level of information technology activity undertaken by The Canada Post Group. In 2009, revenue is expected to decline, as Canada Post and Purolator reduce the pace of technology investment while continuing to require savings in their base operating costs. Total revenue for Innovapost, along with Canada Post International Limited, a former subsidiary of the Group that was dissolved in 2008, was $176 million for 2008.
