Canada Post has announced its financial results for the third quarter of 2014. It reported revenue of C$1.87bn, an increase of 7.0% year-on-year. The company also recorded operating profit of C$32m, which represents recovery from the operating loss of C$109m in the third quarter of 2013. Accordingly Canada Post’s margin stood at 1.71%.
The improvement in results over the prior comparable period of 2013 was driven primarily by increased revenue and lower employee benefit expenses in the Canada Post segment, as well as higher revenue and profit in the Purolator and Logistics segments.
The rise in revenues was largely attributable to 8.2% volume growth in the parcels segment and new pricing for transaction mail, which led to a 13.7% increase in mail revenues. This growth was partially offset by the continued decline of mail volumes which quickened its pace during the quarter.
The improvement in profitability was achieved after the company streamlined its labour costs through a modernization process which cut such costs by C$13m. More significant still was the reduction of employee benefit costs of C$48m compared to the third quarter of 2013. The savings were the result of pension asset returns returning to a more normal level after a strong 2013.
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