[Dion]

The Canada Post segment reported a loss before tax of $31 million for the second quarter as Transaction Mail volumes fell sharply. The loss was also driven by higher employee benefit expenses, partially offset by continued strong growth in the Parcels business.

The loss for the second quarter, ended July 4, 2015, compares to a profit before tax of $53 million for the second quarter of 2014. For the first two quarters of 2015, the Canada Post segment reported a loss before tax of $7 million compared to a profit before tax of $26 million for the same period in 2014.

In the first half of 2015, Transaction Mail volumes (letters, bills and statements) fell by 102 million pieces or 7.2 per cent1 compared to the first half of 2014. That rate of decline is higher than in the first six months of any year since mail volumes peaked in 2006. In the second quarter, volumes fell by 63 million pieces or 6.5 per cent compared to the same period a year ago. The ongoing volume erosion reflects Canadians’ changing needs for postal service, and is the rationale for initiatives contained in the Five-point Action Plan that will achieve substantial operational savings.

Significant volatility in employee benefit expenses continues to pose challenges. The cost of employee benefits for the Canada Post segment rose by $59 million in the second quarter and by $129 million in the first two quarters, compared to the same period a year ago. This is the result of a decrease in the discount rates used to calculate benefit plan costs in 2015, partially offset by strong pension returns in 2014. Employee benefit expenses are expected to remain higher throughout 2015 when compared to 2014.

https://www.canadapost.ca/web/en/blo...t=newsreleases