Canada Post says it expects a ‘substantial’ financial loss in 2013

OTTAWA – Canada Post says it expects to lose money in the 2013 financial year as it grapples with a combination of “rapidly declining mail volumes” and a growing number of new addresses.

The Crown corporation says in the shorter term it managed to return to a profit of $127 million before taxes last year.

That’s an improvement over the $253 million loss before taxes posted in 2011, which was the first time the postal service had posted a loss in 16 years.

The main Canada Post operations were also profitable in 2012, with net income of $98 million, though it was from $152 million of adjustments related to the recognition of lower future sick leave and health benefits.

Without the new collective agreement Canada Post would have lost $54 million before taxes, it said, while the entire group of companies would’ve lost $25 million.

Canada Post says it needs to continue reworking its operations to help substitute the decline in mail volumes. Nearly one billion fewer pieces of mail were sent within Canada last year than in 2006, it says.