Canada Post Group Q2 profits decline sharply

The group attributed the decrease to volume erosion, specifically in Canada Post’s transaction mail business and higher employee benefit expenses.    Canada Post Group posted a loss before tax of $4 million for the second quarter of 2015 in comparison to a profit before tax of $86 million for the second quarter of 2014. The group, which includes its Canada Post segment and three non-wholly owned principal subsidiaries – Purolator Holdings Ltd., SCI Group Inc. and Innovapost Inc. – reported a profit before tax of $18 million for the first two quarters of 2015 compared to a profit before tax of $49 million for the first two quarters last year.
   The Canada Post segment reported a loss before tax of $31 million for the second quarter in comparison to the second quarter of 2014, in which the company posted a profit before tax of $53 million. The group attributed the decline to a decrease in transaction mail volumes, which posted a year over-year drop of 6.5 percent for the second quarter; and increased employee benefit expenses, which grew $59 million in the second quarter compared to the previous year’s second quarter. However, growth in the parcels business, which reported a year-over-year volume increase of 6.5 percent for the second quarter, partially offset the decline.
   Transaction mail revenue for the Canada Post segment for the second quarter fell 5.4 percent year-over-year to $779 million, while parcel revenues for the segment grew 4.8 percent to $17 million compared to the second quarter of 2014.