Thanks to the $109 million sale of its downtown Vancouver mail processing plant, the Canada Post Group of Companies posted a $51 million pre-tax profit in 2013's first quarter, the company announced this morning.
Without the sale, the company would have posted a $58 million loss – still $15 million better than the $73 million loss it posted in 2012's first quarter.
According to Canada Post, declining volumes of mail and the "changing needs of Canadian for postal services" are responsible for the declines in revenue.
In Q1 2013, Canada Post handled 136 million fewer pieces of mail – including bills, letters, statements and direct marketing products – than the first quarter of 2012.
Because of that decline, Canada Post expects to post a "substantial financial loss in 2013."
The company added that digital alternatives and pay-for-paper initiatives enacted by Canada Post customers such as banks and telecommunications companies have considerably reduced mail volumes.
The business-to-consumer delivery market was a positive for Canada Post, as 300,000 more items were handled than in the first quarter of 2012.
The downtown Vancouver plant was, according to Canada Post, "one of Canada Post's most significant properties." To replace it, a new multipurpose facility is being built at the airport.
