Business

Winnipeg Free Press - PRINT EDITION

Canada Post reads red letters

By: Staff Writer

Posted: 08/28/2012 1:00 AM | Comments: 0

TORONTO -- Canadians mailed fewer packages through Canada Post in the second quarter, eroding results across most of the Crown corporation's operations, while its courier business Purolator got a boost, partly from more orders sent by e-commerce retailers.

Noting that the "decline of mail is not something that's going to rebound," the Canada Post Group of Companies said that reality would weigh on any new labour agreement with its workers.

The company reported a loss of $10 million, or $4 million after taxes, on Monday, which marks an improvement from a loss of $18 million, or $17 million after taxes, a year earlier.

But the Crown corporation says the latest quarter compares favourably largely due to a lockout last summer, which pulled down results in the comparable period last year, making the decline in the latest quarter seem less severe.

Mail volumes were down 4.4 per cent or 31 million pieces, it said.

Cost of operations rose 6.1 per cent, or $85 million, to $1.47 billion in the quarter ended June 30.

The company's Purolator courier business showed strength, with higher volumes pushing revenue to $302 million from $245 million a year earlier, particularly due to more shipments from e-commerce retailers.

Canada Post has a roughly $4.7-billion solvency deficit in its pension plan.

The company noted 71 per cent of its overall costs are tied to labour, which is why it believes it's important to reach a collective agreement with the union representing its employees.

"It's time for us to have some realistic discussions based on the current realities we now face," said Jon Hamilton, Canada Post's director of communications, in a phone interview.

"The decline of mail is not something that's going to rebound. Canadians are using Canada Post in different ways. Their expectations of what Canada Post can offer are different and we need to adjust for that."

-- The Canadian Press

Republished from the Winnipeg Free Press print edition August 28, 2012 B4

Fact Check

Have you found an error, or know of something we’ve missed in one of our stories? Please use the form below and let us know.

* Required

In which story did you find the error? *
Please post the headline of the story or the title of the video with the error.
What was the error? *
Please post exactly what was wrong with the story.
What should we have written?
Please indicate your source for the correct information.
Who else should we interview to improve this story?
Please include any contact information you may have.
Can we contact you in the future for advice on stories about this topic?
Yes

No
First Name: *
Last Name: *
E–mail Address: *
This will only be used to contact you if we have a question about your submission, it will not be used to identify you or be published.
Phone: *
This will only be used to contact you if we have a question about your submission, it will not be used to identify you or be published.
Colour:
Are you blue? If you can see this, leave it blank and get some CSS support.
Enter the words that you see: * This is to prevent our forms from being filled out automatically.
You have failed to correctly identify the words in the box above. Please try again.

More Business

Undock

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is register and/or login and you can join the conversation and give your feedback.

Have Your Say

New to commenting? Check out our Frequently Asked Questions.

The Winnipeg Free Press does not necessarily endorse any of the views posted. By submitting your comment, you agree to our Terms and Conditions. These terms were revised effective April 16, 2010.