The Facts: Postal profit vs. loss

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Tuesday May 2 2017

Profits for last 20 of 22 years

Canada Post has reported profits every year since 1996, with the exception of 2011 and 2013.

2011: Our public postal service reported a net loss of $188 million as a result of a lockout of CUPW members and two one-time events: 1) a special pay equity payment and 2) a special pension adjustment resulting from changes to the Pension Benefits Standard Act.

2013: Canada Post introduced new and revised accounting standards, which had a one-time impact of reducing net profits by $350 million, turning what would have been a $321 million net profit into a net loss of $29 million.

 

In spite of predictions, there is no financial crisis at Canada Post.

Canada Post and other bodies have a deplorable record when it comes to making predictions about the corporation’s financial viability, and 2016 was no exception: 

  • The corporation’s latest 5-year plan predicted our postal service (consolidated) would lose $20 million in 2016. 
  • The federal government’s Canada Post Review Task Force forecast losses of $100 million in 2016. 
  • A Conference Board of Canada report, entitled The Future of Postal Service in Canada, predicted losses from operations of $550 million in 2016.  This report was commissioned by Canada Post in the run up to announcing massive cuts to postal service, including the elimination of home mail delivery.

 

In 2016, Canada Post once again turned a profit.  

 

 

Canada Post Group: Canada Post Segment:
Net profit – $81 million Profit before tax – $55 million
Profit before tax $114-million Profit from operations – $63 million
Profit from operations – $149 million