Canada Post reports $39 million in profit for 3 quarters of 2014; mail volumes continue to fall

Three quarters into 2014, Canada Post has reported a profit, before tax, of $39 million, a swing of more than $200 million from the loss for the same three quarters last year. For the third quarter, the profit was $13 million, compared with $129 million in the 3rd quarter the year before. 

Results are attributed to continued growth in the parcel business, lower employee-benefit costs and new pricing related to transaction mail, the core business which continues to decline. The increase in the cost of postage to end users for letters, bills and statements, resulted in a 13.7 per cent increase in revenue to $750 million in the 3rd quarter. Cumulatively, for the first three quarter, revenue was up 6.5 per cent to approximately $2.4 billion.

Volume erosion picked up speed in the third quarter after being lower than expected in the second quarter. Compared to the same periods in 2013, volumes decreased by 58 million pieces or 6.1 per cent in the third quarter and by 175 million pieces or 5.1 per cent in the first three quarters of 2014, [said a release].

 Parcel revenue grew by 8.9 per cent to more than $1 billion for the first three quarters with increase of 4 million pieces (4.2 per cent) compared with the same period in 2013. Direct mail volumes decreased by 99 million pieces, down 2.2 per cent from the previous year. 

The conversion of home delivery to community mail boxes proceeds apace. As of November 25, approximately 100,000 addresses have been converted and a further 200,000 will be converted in 2015.