Canada Post shows 50% profit gain while Purolator slips into the red

OTTAWA (June 19, 2000) — Canada Post Corp. reported net income of $75 million on revenues of $5.6 billion for its 1999/2000 fiscal year, effectively increasing last year’s profit by 50%. It was the Crown corporationÕs fifth consecutive profitable year.

Canada Post’s net income includes the earnings of Purolator Courier Ltd., which reported a net loss of $9 million after recording a profit of $7 million in 1998/99.

Earlier this year, United Parcel Service filed a lawsuit against Canada Post alleging that it uses its federally supported monopoly position as a mail carrier to subsidize its privatized courier operations, including Purolator.

Canada Post has now been profitable for the fifth consecutive year. Its consolidated revenues of $5.6 billion represent an increase of $257 million over 1998/99. Its return on equity ratio was 7.4%; its cost as a percentage of revenues, 98.6%; and its operating profit margin, 1.4%.

The company said it processed 9.6 billion pieces of mail in 1999/2000, unchanged from the previous year.