"Don't be fooled by Canada Post's headline: the Crown Corporation remains profitable," says Union

OTTAWA, Nov. 20, 2015 /CNW/ - The Canadian Union of Postal Workers is pointing out that Canada Post's press release is highly misleading, continuing its record of downplaying financial success in order to impose unnecessary cost-cutting measures.

"Looking at the report, for the first three quarters, we see an overall profit of almost $30 million ($28 million). Once again, in 2015, Canada Post is on track to surpass its projections," said Mike Palecek, National President of CUPW.

The Canada Post news release headline emphasized the $13 million loss for the Canada Post segment. Only much lower down in the release does it mention that the Canada Post Group of Companies reported a profit before tax of $10 million for the third quarter and $28 million for the first three-quarters of 2015.

The post office is a seasonal business, depending heavily on holiday sales for its success. The union cautions Canadians not to be misled by third-quarter results, which are normally lower. In 2014, for example, the fourth quarter generated $185 million in profit, $150 million more than the third quarter profit.

"There is every reason to expect that the Canada Post Group of Companies and the Canada Post segment will both see a much greater overall profit this year once the busy holiday season is factored into its last quarter" said Palecek.


 

CPC Overall Financial Performance versus CPC Corporate Plan

($millions)









2009

2010

2011

2012

2013

2014

CPC consolidated net profit

281

439

(188)

94

(29)

198

CPC Plan

71

48

95

20

(256)

(206)

Source: As reported in CPC annual reports and corporate plans

 

SOURCE Canadian Union of Postal Workers

For further information: please contact Aalya Ahmad, CUPW Communications, 613-327-1177 or aahmad@cupw-sttp.org

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http://www.cupw-sttp.org

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