May 1, 2007
Ottawa - In its 2006 Annual Report tabled today in Parliament, Canada Post Corporation reported its twelfth consecutive year of profit for its Group of Companies. The Corporation recorded a consolidated net income of $119 million for the fiscal period ended December 31, 2006.
"Canada Post's ongoing record of profitability is thanks to the dedication and determination of the more than 70,000 employees that strive to meet the needs of their customers day in and day out," said the Honourable Lawrence Cannon, the Minister Responsible for Canada Post. "Despite the many challenges the company faces in the coming years, I'm confident that the company's employees have the best interests of Canadians at heart and will continue to do their utmost to maintain our confidence and trust in their service."
The return on equity for 2006 was 8.4 per cent. The corporation will make an annual dividend payment at the rate of 40 per cent of net income to its shareholder and is expecting to pay a dividend of approximately $48 million to the Government of Canada in 2007. The total dividends paid over the last five fiscal periods amount to $236 million.
"The financial success has been accomplished by marked improvements in customer satisfaction and service performance results that reflect the commitment and dedication of Canada Post's employees and management team," said Gordon Feeney, Chairman of the Board of Directors. "We must continue to evolve into a dynamic organization that's prepared and able to meet the communications needs of Canada and all Canadians."
Canada Post Corporation's consolidated net income of $119 million was down 40.1 per cent from $199 million in 2005 while the cost of operations increased by 6.5 per cent to $7,116 million from the comparative period.
Consolidated revenues reached $7.3 billion, an increase of 4.6 per cent or $320 million over the comparative period a year ago. Canada's population growth added some 240,000 new points of delivery during the year, while the average revenue-generating items delivered to each address has begun to decline.
On a consolidated basis, Canada Post Corporation processed 11.6 billion pieces during the 12-month period. In 2006, 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 believe that when Canadians look back at 2006, they will see it as a pivotal year for Canada Post one that laid the groundwork for necessary renewal. Earning our customers' business, loyalty and trust, and meeting their changing needs, was a priority for all the lines of business last year. We are making a broad effort to change the culture at Canada Post, and to engage all of our employees in the future success of the company.
Canada Post's Annual Report is available at www.canadapost.ca.
