Canada Post says it lost $104 million in Q2

The Canada Post Group reported a $104-million loss Tuesday in its latest quarter as efforts made to cut costs and streamline operations was not enough to balance out lower mail volumes. The federal Crown corporation says the loss comes in the midst of a “historic shift” to digital communications that has eroded mail volumes at an “accelerated pace.”

OTTAWA — The Canada Post Group reported a $104-million loss Tuesday in its latest quarter as efforts made to cut costs and streamline operations was not enough to balance out lower mail volumes.

The federal Crown corporation says the loss comes in the midst of a “historic shift” to digital communications that has eroded mail volumes at an “accelerated pace.”

As a result, it is in the process of consultations to decide how the company can change with the times, as fewer people continue to send mail and use post offices.

Canada Post said this “multi-pronged transformation” is part of an overall effort to “avoid becoming a financial drain on taxpayers.” The $104 million loss before taxes was heavier than a loss of $102 million in the same quarter a year earlier.

Transaction mail, which includes letters, bills, and statements and accounts for half of Canada Post’s revenue, was down by 51 million pieces or 6.3 per cent in the quarter, compared with a year earlier.

However, Canada Post said its parcels delivery business grew due to the popularity of online shopping.

In Canada, volumes in the second quarter were up by 5.1 per cent, compared with a year ago.

Canada Post said it continues to cut costs by making changes to collective agreements with its workers, who are members of the Canadian Union of Postal Workers.

The changes include reduced wages for new hires, the elimination of banked sick days, and a one-year-wage wage freeze for new hires beginning 2015.

It is also shortening hours at its less-in-demand retail postal outlets, and consolidating mail processing.

The company said the second-quarter loss means it is on track to record a substantial loss in 2013.

Canada Post has been grappling with a persistent drop in many forms of mail as a result of newer technologies such as electronic mail and online banking.

Besides Canada Post, the group includes the Purolator courier service and other subsidiaries.

Just Posted

Springbrook Skate Park gets financial boost

Province approves $125,000 grant for proposed skate park

ReThink Red Deer gets thumbs up from city on pollinator barn structure

Group is hoping to get a $40,000 building grant

Driver who backed into Red Deer pizzeria sentenced

David Andrew Amstutz sentenced for failing to remain at the crash scene

Team Alberta athletes arrive in Red Deer on Saturday for pre-games orientation

Excitement is building with less than a month to go, says Team Alberta spokesperson

UPDATED: STARS Lottery is back

Lacombe STARS patient tells his story

Trudeau says politicians shouldn’t prey on Canadians’ fears

The Prime Minister was speaking at a townhall in Ontario

Olympian snowboarder Max Parrot diagnosed with Hodgkin’s lymphoma

Each year in Canada, approximately 900 people are diagnosed with Hodgkin’s lymphoma

‘Prince of Pot’ Marc Emery accused of sexual assault, harassment

Emery denied the allegations, but a Toronto woman says she is not the only one speaking out

Asteroids are smacking Earth twice as often as before

The team counted 29 craters that were no older than 290 million years

Canada’s arrest of Huawei exec an act of ‘backstabbing,’ Chinese ambassador says

China has called Canada’s arrest of Huawei chief financial officer Meng Wanzhou ‘politically motivated’

In limbo: Leftover embryos challenge clinics, couples

Some are outright abandoned by people who quit paying storage fees and other couples struggle with tough decisions

Netflix rejects request to remove Lac-Megantic images from ‘Bird Box’

At least two shows on Netflix’s Canadian platform briefly use actual footage of the 2013 tragedy

Teen vaping is an epidemic: US government

E-cigarettes are now the top high-risk substance used by teenagers, outpacing cigarettes, alcohol, marijuana

‘I never said there was no collusion,’ Trump lawyer says

President Donald Trump’s lawyer Rudy Giuliani says he has ‘never said there was no collusion’

Most Read