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MONDAY MAY 25, 2009


CANADA POST TABLES 2008 ANNUAL REPORT

The Corporation recorded a consolidated net income of $90 million on revenues of $7.7 billion in 2008 according to the annual report tabled in Parliament. To remain profitable and meet its targets, Canada Post had to undertake a series of cost-cutting measures that enabled the Corporation to achieve a narrow operating margin of 1.8 per cent. The current economic downturn has not spared the mailing industry nor Canada Post. The strong financial performance of Canada Post’s subsidiaries, Purolator Courier Ltd. and SCI Group Inc., were largely responsible for the Corporation achieving income before taxes of $161 million. Canada Post’s cost of operations increased by 5.6 per cent to $7.6 billion. Total volume for 2008 remained flat at 11.8 billion units. Revenue and volume
highlights (increase/decrease vs 2007):

Major Segment

Revenue +/-
% Total Revenue
Volume +/-

Transaction Mail

+0.2%
53.0%
-2.0%

Parcels

+5.4%
21.0%
-8.3%

Direct Marketing

+2.5%
24.0%
+0.9%

Canada Post’s full annual report is available online at: www.canadapost.ca


POSTAL ECONOMICS IMPORTANT TOPIC AT CANADA’S POSTAL FORUM
Postal economics: infrastructure renewal, the impact of Postal Transformation for customers, and pricing strategies; is one of the three major themes taking centre stage at The 2009 Postal Forum. Join Canada Post and industry experts as they focus discussion and planning on issues crucial to business success. NAMMU proudly presents this platform for dialogue between Canada Post and industry, at the Intercontinental Hotel, Toronto, June 11th.

Experts will also focus on the NAMMU challenge to achieve 100 per cent deliverable mail - meeting this challenge will deliver the single most important cost reduction and ROI improvement mailers can control. What are the next steps toward achieving this industry objective? As well, the huge potential of partnership initiatives with the VAM community could be the next big step in increasing postal volumes and revenue: what’s underway now, what are the next steps to establish this program, how soon will you benefit? Plus, What’s On Your Wish List? Join the Postal Forum’s concurrent round tables and add your points for follow-through. Expert moderators are challenged to prioritize at least five specific ideas tabled during discussion on:
Transaction Mail – Publications Mail – Direct Mail – Address Management – VAM Priorities – Ontario HST. Join the experts for an information-packed opportunity at The 2009 Postal Forum. Learn more and Register:
click here

 

USPS NEEDS STRUCTURAL CHANGE
The Association for Postal Commerce (PostCom) reports a small but constructive group at the National Postal Forum last week, seriously intent on helping the USPS ride out these tough economic times. This dedication was commended by Postmaster General Jack Potter, who thanked attendees for their commitment to mail. PMG Potter noted the need for important “structural changes” including the flexibility to reduce delivery to five days per week. The USPS estimates a $3.5 billion savings with this reduction in mail delivery frequency.

The National Postal Forum also included sessions where the USPS and its customers and service providers talked about innovative ideas to add value to the mail and grow volume. Postmaster General Jack Potter told the conference attendees that he is optimistic that mail volume will grow, noting the current decline is more a reflection of the economy. USPS President of Shipping and Mailing Services Bob Bernstock referred to the USPS’ recent innovative incentives to grow mail volume, such as the summer sale and saturation mail initiative, as its "stimulus package" for customers. These efforts support the comments that Postmaster General Jack Potter made at the Forum: "We have to pick up the pace. If things are changing fast around us, we have to change just as quickly," he said. "We cannot cost cut our way to success today."

Bernstock said that the Postal Service has only just begun unleashing innovative ideas to stimulate mail volume growth and add value to the mail. In several of the Forum sessions, the USPS discussed with its customers and service providers more innovations it is exploring, including the revitalization of the catalogue sector.
Learn more:
www.postcom.org


CANADIANS OPTIMISTIC ABOUT FUTURE ECONOMY
According to the TD Canada Trust Personal Finance Survey conducted in April 2009, three-quarters of Canadians are optimistic about their long-term financial future, but 77 per cent are worried about the short-term. The survey revealed that the financial concerns of Canadians are about their present reality. More than one-quarter of Canadians are living paycheque-to-paycheque; and 57 per cent of Canadians say the economic downturn has had a negative impact on their personal financial situation and they are looking for advice now. The top three financial concerns of Canadians revealed in this survey: whether they can maintain their current lifestyle (22%) followed by losing money from investments (18%) followed by having enough money to retire on (16%).
Learn more:
www.tdcanadatrust.com
 


 

 

The KMR Group Inc., all rights reserved.
eView is the electronic bulletin of the National Association of Major Mail Users highlighting issues of interest to business mail communication and delivery professionals. Content: KMR Group. The information contained in eView is obtained from various sources and believed to be reliable but accuracy cannot be guaranteed.

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