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Ottawa - In its 2005 Annual Report tabled today in Parliament, Canada Post Corporation reported its eleventh consecutive year of profit for its Group of Companies. The Corporation recorded a consolidated net income of $199 million for the fiscal period ended December 31, 2005.
"Eleven consecutive years of profitability is eloquent proof of the consistent effort by the management and employees of Canada Post," said the Honourable Lawrence Cannon, the Minister Responsible for Canada Post.
"In coming years, Canada Post will continue to ensure Canadians receive the best service possible and meet the challenges of technological change and competition on the open market."
The return on equity for 2005 reached 15 per cent, the second consecutive year of achieving one of the key objectives of the multi-year Policy Framework approved by the shareholder, the Government of Canada, in 1998. As a result the corporation will make an annual dividend payment at the rate of 40 per cent of net income to its shareholder. The Corporation is expecting to pay a dividend of approximately $80 million to the Government of Canada in 2006. The total dividends paid over the last five fiscal periods amount to $177 million.
"The financial success accompanied by marked improvements in customer satisfaction and service performance results, reflects the strength and commitment of Canada Post's employees and management team," said Gordon Feeney, Chairman of the Board of Directors. "However, it is imperative that we continue to make changes and investments in our operations and delivery network to ensure efficiency and profitability for the future."
Canada Post Corporation's consolidated net income of $199 million increased $52 million from $147 million in 2004 while the cost of operations increased by $268 million or 4.2 per cent from the comparative period.
Consolidated revenues reached $6.9 billion, an increase of 4.4 per cent or $293 million over the comparative period a year ago. Canada's population growth added some 240,000 new points of delivery during the year, which translates to less mail delivered per point of call resulting in a decline in per point of call revenue and higher overall operational costs.
On a consolidated basis, Canada Post Corporation processed 11.1 billion pieces during the 12-month period.
In 2005, Canada Post met the corporate on-time service performance target of 96 per cent for the delivery of Lettermail.
Moya Greene, President and Chief Executive Officer for Canada Post said, "I want to extend my congratulations to our dedicated employees across Canada. Our success is a true reflection of their commitment to our customers. However, changing customer needs means our current business model is not sustainable and we must continue to innovate as we seek additional sources of revenue to counter losses from the ongoing erosion of Lettermail volumes. We have changed our structure to clearly focus on Canada Post's three main lines of business to put the customer front and centre in all that we do."
Canada Post's vision is to be a world leader in providing innovative physical and electronic delivery solutions, creating value for its customers, employees and all Canadians.
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