Canada Post surpasses performance targets and records ninth consecutive profit

Canada Post Corporation has reported in its 2003 Annual Report a consolidated net income for its Group of Companies of CAD253 million for the fiscal period ended December 31, 2003. For the first time in the Corporation’s history, it has achieved positive consolidated retained earnings.

As a result of this strong financial performance and the Corporation’s commitment to achieving the long-term goals established in the multi-year Policy Framework, the Corporation has declared and will pay a dividend of CAD63 million to the Government of Canada in 2004. In 2003 Canada Post paid its shareholder a dividend of CAD18 million.

The Honourable Stan Keyes, the Minister Responsible for Canada Post said, “I am encouraged by Canada Post’s performance. The level of disclosure in the Annual Report reflects the kind of openness and transparency the government expects from all of its Crown Corporations.”

The significant improvement in net income was attributable to the settlement of international dues and the recognition of a net income tax recovery resulting from the elimination of the termination benefit plan for management, exempt and Canadian Union of Postal Workers members. Even without these extraordinary items and no increase in the price of Lettermail, Canada Post exceeded its net income target of CAD58 million by 14% for a net income of CAD66 million.

“Being able to maintain the same level of profits year over year is an even greater accomplishment given the difficult circumstances of 2003,” said Vivian Albo, Chairman of the Board of Directors. “The SARS outbreak, the war in Iraq, the blackout in Ontario, forest fires in Alberta and British Columbia, the threat of mad cow disease and the hurricane in Nova Scotia had a serious impact on the Canadian economy. That Canada Post Corporation succeeded in these challenging conditions is an enormous credit to the organization.”

Consolidated revenues reached CAD6,344 million, an increase of 3% or CAD190 million over the comparative period a year ago. The population growth added some 240,000 new points of delivery and more than CAD25 million to the cost of providing postal services in 2003.

On a consolidated basis, Canada Post Corporation processed 10.7 billion pieces during the 12-month period. An on-time service performance score of 96.6% for Lettermail was achieved against the target of 96%.

Anne Joynt, President and Chief Executive Officer for Canada Post said, “We set ambitious goals for our company in 2003, and thanks to the continuing hard work and commitment of our workforce, we achieved new levels of performance by exceeding our financial target and surpassing our on-time performance target for Lettermail and Xpresspost service. We also signed a new collective agreement with our largest union ensuring continuous labour peace for up to ten years.”

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.