Canada Post Corp. reported net income of $90 million on revenue of $7.73 billion during 2008. In 2007, Canada Post generated net income of $54 million on revenue of $7.47 billion.
The Canadian Postal Service attributed its profitability to a series of cost-cutting measure without which it would have taken a loss of more than $150 million.
The service’s cost of operations for fiscal 2008 totaled $7.59 billion compared with $7.35 billion a year earlier. Both figures represent operational costs slightly in excess of 98% of revenue.
Revenue from Transaction Mail totaled $3.23 billion; parcels revenue totaled $1.31 billion; and direct marketing revenue was $1.43 billion. Transaction mail volume decreased by 2% in 2008; parcels volume decreased by 8.3% in 2008; direct marketing volumes rose by 0.9%.
Canada Post attributed its net income bump to strong performances from its Purolator Courier Ltd. and SCI Group Inc. subsidiaries. Purolator generated revenue of $1.56 billion in 2008, an increase of $115 million over the $1.45 million realized in 2007.
During the year, the company also met its on-time delivery target for Lettermail of 96%. The service’s total volume was 11.8 billion, consistent with last year’s volume. According to remarks accompanying the Service’s financials, the lack of growth was attributable, in part, to a 2% decrease in transactional mail items.
