Canada Post Corporation has announced before-tax profit of $13 million in the third quarter of 2014, representing a drop of 81% compared with $67 million in the previous quarter.
The Crown corporation said the ever-decreasing volume of transaction mail due to the use of digital alternatives continues to eat away at its bottom line.
The most recent quarter’s results are significantly more positive when compared with the same period last year, however. In Q3 2013, Canada Post had a pre-tax loss of $129 million. Year-to-date, this year saw $39 million in profit; last year, the same period had a loss of $165 million.
Volume is down by 58 million pieces, or 6.1%, compared with the same period last year. The corporation said this year’s results are more positive due to a $48 million drop in employee benefit costs. This was achieved due to layoffs the company announced in December 2013 in its controversial “Five-point Action Plan ,” which included laying off between 6,000 and 8,000 employees.
The plan also included an announcement that Canada Post would be phasing out home mail delivery over the next five years.
@EmmaHampelBIV
