Canada Post has reported that it lost CA$60m (US$45m) before tax in the third quarter of 2016, when the risk of a work disruption prompted commercial customers to make other arrangements to deliver their parcels and mail.
The net financial impact of the labor uncertainty is estimated at CA$100m (US$75m) for the third quarter. That figure reflects the significant reduction in revenue but also includes slightly lower costs, such as less use of overtime and temporary employees, because volumes had declined sharply in all lines of business. Canada Post and the Canadian Union of Postal Workers reached tentative agreements on August 30, 2016, but volumes took much longer to recover.
The Canada Post segment’s CA$60m (US$45m) loss before tax in the third quarter, which ended October 1, 2016, compared with a loss before tax of CA$13m (US$9.7m) in the third quarter of 2015. For the first three quarters, the Canada Post segment recorded a loss before tax of CA$15m (US$11m), compared with a loss before tax of CA$20m (US$15m) in the same period in 2015. The improved results over three quarters are largely due to growth in the parcels business over the first two quarters of 2016.
November 30, 2016