Canada Post Corporation (CPC) has reported a loss of $10 million in its second quarter ended June 30, while its revenue from publications mail including magazines made a slight gain.
While volume breakdowns for Business Reply Mail (including magazine subscription cards) weren't available from Canada Post, the corporation provided revenue data for Q2 compared to Q1 of this year. Business Reply Mail was flat ($7 million for both quarters), while Publications Mail (including magazines) actually grew slightly — $62 million in Q2 compared to $61 million in Q1.
Direct Marketing mail volumes (including business reply mail) were "flat on a year-to-date basis when compared to the first two quarters of 2011, but compared to the same period in 2010, volumes declined by more than 140 million pieces or 5.5%. Direct Marketing results remained below expectations as corporate customers reduced their marketing spend and shifted to electronic media."
Keep in mind there was a labour dispute
between Canada Post and the Canadian Union of Postal Workers (CUPW) last summer, which may make this quarter's results look a little rosier. "Because of the large impact of the June 2011 labour disruption, comparing this year's second-quarter results to last year's second-quarter results has the unintended effect of minimizing the severity of the continuing volume decline and the resulting pressure on the Canada Post segment's revenue," noted the corporation.
CPC claims its labour costs amount to 71% of its spending. Meanwhile, the corporation and CUPW are trying to reach collective agreements. CPC said it tabled a new offer on July 19, "which aims to reduce costs and positions the company for a very different future."
CUPW said it met with Canada Post (CPC) on June 26 to hear the corporation’s response to the union’s May 7 global offer, which was rejected.