BRIEF-Canada Post segment reports profit before tax in 2015 of $63 million

Fri May 6, 2016 12:44pm EDT
 
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May 6 (Reuters) - Canada Post

* Canada Post segment reports profit before tax in 2015 of $63 million

* Canada Post - 2015 "Profit is modest in comparison to corporation's revenue and significant challenges facing canadian postal system"

* Canada Post - 2015 results reflect continued erosion of transaction mail volumes, improved earnings due to strategic initiatives, increase in employee benefit costs

* Canada Post - $131-million decline in 2015 profit before tax was mainly due to Canadians' ongoing migration away from paper bills

* Canada Post - Earnings included about $390 million in 2015 due to transformational initiatives taken in response to Canadians' changing use of postal services

* Canada Post - Profit before tax of $63 million for Canada Post segment in 2015, compared to a profit before tax of $194 million in 2014

* Canada Post - Challenges include declining mail volumes, increasing addresses to serve, significant pension obligations,need to invest in infrastructure

* Canada Post - Decline in 2015 transaction mail volumes of more than 6 per cent represents a revenue shortfall of $207 million

* Canada Post - Canada Post Corporation registered pension plan had a solvency deficit to be funded estimated at $6.2 billion as at december 31, 2015 Source text for Eikon: (Bengaluru Newsroom; +1 646 223 8780)