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Canada Post announces slim profit for 2008

May 8, 2009

OTTAWA - 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.