Despite more people still choosing email over snail mail, the Canada Post Group of Companies says it’s on track to earn a profit this year despite an earlier forecast for a multimillion-dollar loss.
The Crown corporation said it earned $84 million before tax for the first three quarters of the year, driven by its parcels business and higher stamp prices, along with lower employee benefit expenses.
In its 2014 corporate plan, it had projected that it would lose $274 million before taxes for the year.
“Despite the uncertainty about volume erosion, improvements to the bottom line are expected to continue in the fourth quarter and a net profit for the year ended Dec. 31,” Canada Post said as it reported third-quarter results Nov. 26.
The last year it recorded a net profit was in 2010.
The company said it earned a net profit of $22 million for the third quarter, as it handled more packages but was impacted by fewer mail and flyer distribution deliveries. The profit reversed a net loss of $73 million in the same period a year earlier for the group, which also includes the Purolator courier service and other businesses.
The improved finances come as Canada Post cuts costs and revamps its operations with the end of home mail delivery.
Canada Post said it doesn’t plan on hiking stamp prices in 2015, after increasing them earlier this year as part of a wider strategy to cut costs and improve results.
