World Postal News
POSTAL NEWS
No 69-2020
Formulated by UNI AproPost and Logistics Sector
1. CEO Frank Appel at the Annual General Meeting: "Deutsche Post DHL Group will emerge stronger from the crisis"August 27, 2020.
2. Royal Mail has seen a 25% increase in returns traffic. August 26, 2020.
3. FedEx upgrades export services in South China.August 25, 2020.4. PostBushas to go back to the negotiating table and solve problems! August 25, 2020.
5. USPS Board of Governors Announces Bipartisan Election Mail Committee. August 21, 2020. |
1. CEO Frank Appel at the Annual General Meeting: "Deutsche Post DHL Group will emerge stronger from the crisis"
August 27, 2020
The operating profit for 2020 should reach between EUR 3.5 billion and EUR 3.8 billion.
Bonn - Deutsche Post DHL Group is navigating safely through the crisis and considers itself well prepared for the post-pandemic period. "We can be proud of how we've risen to the challenge so far. The crisis shows how robust Deutsche Post DHL Group is," said CEO Frank Appel at the Group’s Annual General Meeting, which is held virtually this year due to the Corona pandemic.
In his address, Appel talked about the crisis highlighting the importance of logistics – as the backbone of the global economy. "Normally people hardly notice the logistics behind the scenes because everything is running smoothly. It takes a situation like this to truly appreciate how critical logistics is", he said. According to Appel, Deutsche Post DHL Group is making a fundamental contribution to overcoming the crisis. By transporting medicines, protective equipment and medical equipment around the world, and maintaining trade flows, the Group has kept "the world running". "Without us, manufacturing would grind to a halt," he said. "We supply people and businesses with important goods. Never before have our services been so urgently needed."
Appel was correspondingly confident with regard to the Group’s earnings guidance for the current year, issued in July, and the medium-term financial targets: "We’ve managed to implement the right measures in many areas", he said. "Deutsche Post DHL Group will emerge stronger from this crisis." Accordingly, operating profit for 2020 should reach between EUR 3.5 billion and EUR 3.8 billion. For 2022, the Group expects EBIT of around EUR 4.7 billion to more than EUR 5.3 billion, depending on the course of the overall economic recovery.
According to the CEO, the fact that Deutsche Post DHL Group is coming through the crisis so well is due to its robust business model, long-established corporate culture and clear strategic direction. "Strategy 2025", presented in fall 2019, has kept the Group on track despite the uncertain environment, said Appel. "The strategy focuses on the right issues: globalization, e-commerce, digitalization and sustainability. These trends have become all the more relevant in this time of crisis, or are even accelerating rapidly due to the pandemic."
A powerful organization: Optimally positioned for the future with "Strategy 2025"
According to Appel, the pandemic has shown that globalization is not the problem, but the solution. The fight against Corona has made clear the importance of a connected world – whether it’s worldwide collaboration in research, or supplying people with the goods they need. "The impact of the pandemic would have been considerably more severe without global exchange," he said, referring among other things to the search for a vaccine. "We don’t believe in an end to globalization," said Appel. "On the contrary. It is too important. And we are proud to enable it on behalf of our customers. Nobody does globalization better than we do."
After red-hot growth over the last several months, Appel still sees considerable growth potential in e-commerce, which offers growth opportunities to entrepreneurs. "If you have a compelling idea, the world market is open to you. That's billions of potential customers," said Appel, adding that Deutsche Post DHL Group’s global presence in more than 220 countries and territories makes it the ideal partner.
According to Appel, the pandemic has also accelerated digitalization. It helps to rethink logistical processes. The result is a more modern, sustainable company. That is why Deutsche Post DHL Group is investing around two billion euros in the digital future by 2025 – for greater efficiency, for a better customer experience and improved working conditions. "I am certain that we’ll see rapid progress," said Appel.
Despite the current challenges posed by the pandemic, Appel also warned not to lose sight of sustainability and climate change. In the long term, he said, it was the much bigger problem – with existential consequences. As a sustainable provider, Deutsche Post DHL Group has been setting standards in the industry for years, Appel said. "We are not resting on our laurels. We want to reduce our emissions to zero. This also supports our customers, since they depend more and more on green logistics. These days, providers that can offer green logistics have a competitive advantage."
With "Strategy 2025", the Group has created a powerful organization, Appel summarized at the Annual General Meeting. "We're in great shape." The purpose of the company is to connect people and improve lives. "It inspires us to give our best."
Balanced profit sharing: EUR 300 employee bonus and stable dividend
In his address to shareholders, Appel indicated that he was very satisfied with the recently announced financial results for the first half of 2020. Despite the challenges due to the Corona pandemic, Appel reported that all five divisions were profitable and that Deutsche Post DHL Group continued to grow overall. The second quarter saw Group revenue up by 3.1 percent to EUR 16.0 billion – driven in part by the boom in e-commerce. Operating profit rose by 18.6 percent to EUR 912 million.
Appel expressed special thanks to the Group’s approximately 550,000 employees worldwide: "You've done an incredible job in this difficult time. Thank you for making the impossible possible." As a show of appreciation, the Group will pay all employees worldwide a one-time bonus of EUR 3001 in the third quarter of this year.
For balanced participation in the success of the company, the Board of Management and Supervisory Board proposed a dividend of EUR 1.15 per share for the past financial year, unchanged from the previous year. Appel emphasized that stable dividends are by no means standard in the current environment. If the proposed dividend is approved by shareholders, the Group would pay out a total of approx. EUR 1.4 billion to shareholders – a dividend payout ratio of 55 percent of the adjusted net profit for 2019. Deutsche Post DHL Group would thus remain within the target corridor of 40 to 60 percent, unchanged since 2010. Payment of the dividend is scheduled for September 1, 2020.
Change in the Supervisory Board: Rosen and Kukies stand for election
The agenda of this year’s shareholders’ meeting also includes the election of two new Supervisory Board members. The term of office of Roland Oetker, Honorary President of DSW Deutsche SchutzvereinigungfürWertpapierbesitze.V., who is not available for re-election due to the age limit, will end as planned at the end of today's Annual General Meeting. Werner Gatzer, State Secretary in the Federal Ministry of Finance, resigned in February of this year in the context of accepting a Supervisory Board mandate at Deutsche Bahn AG.
Up for election to the Supervisory Board are Lawrence A. Rosen, Deutsche Post DHL Group CFO from 2009 to 2016, and Dr. JörgKukies, State Secretary in Germany’s Federal Ministry of Finance.
Source : https://www.dpdhl.com/en/media-relations/press-releases/2020
2. Royal Mail has seen a 25% increase in returns traffic
August 26, 2020
Royal Mail have revealed the areas in the UK where residents have been returning the most unsuitable and ill-fitting items ordered online during lockdown as restrictions ease.
Royal Mail has seen a 25 % increase in returns traffic, in comparison with the same time last year (July 2019 vs. July 2020) as consumers reflect on some of their hastier purchases.
When viewed across the UK, St Albans tops the list, followed by Watford. Kingston-upon-Thames, Ilford and South West London complete the top five.
When split into countries, Edinburgh comes out top in the Scotland list and Cardiff takes first place in Wales.
Many retailers extended return periods during lockdown, giving consumers more time to make a decision on their purchases. The rise of the home fitting room has been given further momentum as many bricks and mortar stores continue to seal off their fitting rooms.
The findings are based on analysis of Tracked Returns 48 items accepted into the Royal Mail network in an average week in the time period between 29 June 2020 to 2 August 2020.
Nick Landon, Chief Commercial Officer at Royal Mail said: “Having analysed our returns data across our national network of delivery offices, St Albans has emerged as the UK’s returns hotspot. With e-commerce playing an important role in keeping the UK connected during such unprecedented times, online returns form an even more important part of the online shopping experience for both consumers and retailers.”
During lockdown, our research revealed more than half (53% of UK adults felt that receiving parcels had become more important and more than a third (36%) said receiving a parcel was the highlight of their day.
Source : https://postandparcel.info/125989/news/parcel
3. FedEx upgrades export services in South China
August 25, 2020
FedEx has announced an upgrade to its cross-border e-commerce export services in South China. The company says it is now using policies developed during a cross-border e-commerce B2B export supervision pilot program, implemented by China Customs. As a result, FedEx’s Guangzhou and Xiamen Gateways are now offering rapid customs services for cross-border e-commerce companies’ B2B export shipments.
According to the company, the policies apply to cross-border e-commerce B2B direct export and export to overseas warehouses.
FedEx customers, after registering and system docking at their local customs offices, can now use a number of facilitation measures for their export goods, such as simplified declaration, priority inspection and return account management. They also no longer need to pack goods individually and stick air waybills on separate packages; instead, they can export in batches.
“FedEx has been fully supporting and cooperating with Customs in various innovation and reform programs,” said Eddy Chan, senior vice president of FedEx China. “We are committed to providing convenient and efficient customs clearance services for Chinese cross-border e-commerce enterprises. That is why we are jointly promoting the high-quality development of China’s cross-border e-commerce industry with China Customs. The new model will be especially beneficial to small and medium-sized enterprises, which generally export large quantities of goods but at low unit prices. The new clearance method can further reduce their logistics costs, improve customs clearance efficiency and help them expand to overseas markets more rapidly.”
Source : https://www.parcelandpostaltechnologyinternational.com/news
4. PostBushas to go back to the negotiating table and solve problems!
August 25, 2020
The assembly of delegates expresses its confidence in the negotiating delegation and would like to open the combat fund.
A day blacker than black. The negotiating delegation remembered July 22, 2020 when the postal group unilaterally broke off negotiations on the GAV PostBus and questioned the entire syndicom negotiating delegation. Syndicom approached PostBus with the last offer.
The question of how syndicom should react to this blockade was not wanted and could not be answered by the negotiating delegation alone, which is why they waited for the planned delegates' meeting (DV). The delegates present have now decided the following.
· PostBus is ultimately asked to resume negotiations. Starting over is not an option.
· The negotiating delegation is not changed. She enjoys the full confidence of the delegates and the sector management.
· The negotiating mandate remains. All problem areas should be solved or a way to find a solution should be defined.
· The sector management should apply to the syndicom management to open the combat fund.
· The negotiating delegation and the board of directors are tasked with drafting a campaign plan, planning actions and implementing them if the postal company continues to block the negotiations.
PostBus had promised to solve problems.
Two years agoPostBus employees had had enough. They no longer accepted free work, demanded that expenses and travel time be properly accounted for, or protested against the pressure at work. It went so far that the then head Thomas Bauer publicly said “Sorry” in September 2018 and promised to solve the problems.
Two years later, the will no longer seems to be there on the part of the Post.By breaking off the collective bargaining agreement, the postal group is endangering the social partnership. The promised cultural change, it seems, did not take place.
Source :https://syndicom.ch/aktuell/artikel
5. USPS Board of Governors Announces Bipartisan Election Mail Committee
August 21, 2020
WASHINGTON, DC – The United States Postal Service Board of Governors today announced the establishment of a bipartisan Election Mail Committee that will actively oversee the United States Postal Service’s support of the mail-in voting process. The committee will be chaired by Governor Lee Moak, who will be joined on the committee by Governor Ron Bloom and Governor John Barger.
The Postal Service has a long history of effectively helping Americans participate in elections via mail-in ballots, which are expected to account for less than two percent of all mail volume from mid-September until Election Day. However, because of the ongoing pandemic, many states are anticipating the expanded use of the mail for voting during the upcoming national election, and in some instances are allowing mail-in voting and no-excuse absentee voting for the first time under statute, and each state has unique requirements and deadlines for ballots under state laws.
The Election Mail Committee will use its oversight role to reinforce the strong commitment of the Postal Service to the mail as an important part of the nation’s democratic process, and will regularly monitor execution of USPS’s work on election mail to ensure that our part of this election process is implemented in the most effective way possible.
In a joint statement, the Governors announced:
“The United States Postal Service will play an indispensable role in ensuring that those Americans who wish to vote by mail will be able to do so and have their votes counted. The Governors take our responsibility with the utmost gravity, and we will work to ensure that the Postal Service continues to perform for the American people this election season.
“Postmaster General Louis DeJoy has the full support of the Governors. He was selected to help bring needed changes to the Postal Service, which has experienced over a decade of financial losses and faces the need for fundamental reform. The essential public service functions of the Postal Service must be maintained, and the Postmaster General’s reform initiatives will help ensure that they can be for many years to come.”
Source : https://about.usps.com/newsroom/national-releases/2020
POSTAL NEWS
No 70-2020
Formulated by UNI AproPost and Logistics Sector
|
1. Australia Post: our investment in growing capacity in the parcels network has served us well.August 27, 2020.
2. UPS Announces Executive Leadership Team Changes. August 26, 2020.
3. Swiss Post and Matternet to resume drone operations following interruption due to coronavirus. August 25, 2020.4. UNI joins U.S. postal workers’ demands to #SaveThePostOffice. August 24, 2020. 5. Canada Post segment reports $378-million loss before tax in second quarter. August 21, 2020. |
1. Australia Post: our investment in growing capacity in the parcels network has served us well
August 27, 2020
Australia Post has announced for FY20 group revenue of $7,499 million, a new record up 7%, and a profit before tax of $53.6 million. While total revenue grew by more than $500 million during the period, boosted by a boom in eCommerce, growing losses in the letters business and increased network costs resulted in a profit before tax result up only $13 million compared to FY19.
Australia Post’s parcel and services revenue at $5,503 million was up 15%, adding $729 million to the full year result, highlighting that 73% of total revenue is now generated from highly competitive markets.
Pleasingly, domestic Australia Post branded parcels rose 25% to $2,456 million. In the second half of the year parcel revenues were boosted by the continued growth of eCommerce as consumer demand grew as families adapted to lock down restrictions and more businesses went online as their physical stores hibernated.
Costs increased over the period by $477 million including higher operational network costs to support growth in parcels and AP Global, additional processing facilities and chartered air freight to meet customer demands, as well as personal protective equipment for workers. Australia Post also generated over $280 million in cost savings from business efficiency programs implemented across the organisation including reducing support costs by $62 million.
Letter revenues were $2.0 billion for the period, down $220 million or 10% for the full year. Although Australia Post benefited from a 10 cent increase to the basic stamp price on January 1, the significant disruption in letter volumes in the second half adversely impacted results, with letters losses growing by 26% to a full year loss of $241 million.
Australia Post Group Chief Executive Officer and Managing Director Christine Holgate said the result highlighted the critical need for temporary regulatory relief announced by the Federal Government in April this year, as the business quickly adapts to changes in consumer behaviour accelerated by COVID-19.
“We understand the important role our Posties and Post Offices play in serving Australia. Protecting their roles, whilst meeting new community and business expectations, is critical as our business adapts to significant market changes. The Temporary Regulatory Relief provides us the opportunity to enable the Posties to deliver more parcels in turn helping sustain their roles and protect the viability of our Post Offices in a very challenging period,” Ms Holgate said.
“And while the growth in e-commerce has been a strong driver behind this year’s financial result, we have had to make changes to ensure our workforce and network can operate as efficiently and safely as possible. The pandemic has also severely impacted our ability to deliver across the country ontime. We had to make temporary changes, including new parcel pop-up facilities and chartering planes for air freight, to continue to serve the country during what has been a very uncertain year.
“Our Post Office network continued to play an essential role in providing goods and services to local communities. Through bushfires, floods and a pandemic, our Post Offices kept their doors open. Although traditional services such as letters, passports and Billpay fell in the period, due to travel restrictions and as businesses switched to digital communications, parcel revenues grew and have become their most important income source. Over-the-counter parcel transactions have increased as people looked to send care packages and parcels to stay connected with loved ones through the COVID-19 crisis.
“The International business has been impacted by global conditions, due to a significant fall in air freight capacity to and from Australia, as well as many countries closing their borders in the second half of the financial year. Although international letters and packets volumes were down 16% year on year, the strong performance of AP Global, our cross-border eCommerce business, saw revenue grow by $146 million to $225 million, ensuring our total international portfolio remained strong.
“Domestically, our focus on investment in growing capacity in the parcels network has served us well, with the largest parcel processing facility in the Southern Hemisphere opening last October in Brisbane. This facility, along with 16 temporary smaller sites, has ensured we were able to support small and large businesses in connecting them with their customers, proudly contributing $2.4 billion in eCommerce economic activity in the fourth quarter.
“Of course, this result would not have been possible without the continued hard work and dedication of our people – particularly our posties, delivery drivers, parcel and mail processors, contact centre and both corporate and licensed Post Offices teams. They continued to show up for work each and every day through uncertain times and worked hard to ensure the community had sustained access to essential goods and services.”
Australia Post is cognisant of the challenging and uncertain economic conditions in the coming year and the potential impact on business and household expenditure.
The 2020 Annual Report will be tabled in Federal Parliament in October 2020.
Source : https://postandparcel.info/126025/news/post
2. UPS Announces Executive Leadership Team Changes.
August 26, 2020
Atlanta, GA - UPS (NYSE:UPS) today announced the appointment of Nando Cesarone to President, U.S. Operations and Scott Price to President, UPS International.
Nando Cesarone previously served as President UPS International and in that role led the company's business operations in more than 220 countries and territories outside of the U.S.
Prior to that, he served as President of UPS’s European operations, leading UPS Europe to record business performance during the company’s five-year investment program. Cesarone also served as President of the Asia Pacific Region.
Cesarone will now also be able to take his extensive international experience to drive greater cross-border success for our U.S. customers expanding into overseas markets. Nando succeeds George Willis, who has chosen to retire for personal and family reasons. George served in a series of roles of increasing responsibility over the course of his successful 36-year career at the company.
In leading UPS International, Scott Price will bring the global operational perspectives he has gained from being responsible for strategic planning, Global Business Services and the company’s Advanced Technology Group, as well as having lived and worked abroad in Europe and Asia for most of his career.
He has proven expertise running our strategy and transformation efforts in identifying and executing opportunities for profitable growth within existing business units, and in new markets and product segments. He has the breadth of perspective needed to create the highest strategic benefit for UPS and its customers in order to drive greater shareholder value.
Prior to UPS, Scott served as Executive Vice President of Global Leverage for Walmart International and President and Chief Executive Officer of Walmart Asia. Scott also held executive leadership roles in international positions at DHL Express Europe and at the Coca-Cola Company in both Japan and China.
Source : https://www.pressroom.ups.com/pressroom
3. Swiss Post and Matternet to resume drone operations following interruption due to coronavirus
August 25, 2020
From 27 August 2020, Swiss Post and drone systems developer Matternet will resume their drone operations to serve the healthcare sector. The move comes after the flights stopped during the coronavirus crisis. In Lugano, drones will fly as normal again from this date onwards. Swiss Post and Matternet expect to begin test flights on the University Hospital Zurich – University of Zurich Irchel Campus route on 31 August 2020. From September, Swiss Post drones are expected to regularly transport laboratory samples again between the two locations.
Swiss Post and drone systems developer Matternet had suspended the drone flights because of the coronavirus crisis. The drones will be back in the air from 27 August 2020. In Lugano, they will transport laboratory samples again on a daily basis from this date to serve the healthcare sector. The drones will connect the two hospitals,
Ospedale Civico and OspedaleItaliano. The drones in Ticino have been grounded since mid-March, as the Ticino hospitals were pooling their staffing resources due to the coronavirus crisis.
In Zurich, Swiss Post and Matternet plan to carry out test flights between the University Hospital Zurich (USZ) and the University of Zurich (UZH) Irchel Campus from 31 August 2020, with the aim of reinstating the route between the locations. Swiss Post and Matternet made use of the interruption in flights to check the previous flight path. In consultation with FOCA, the flight path over the forest has been moved further east. From September, the drones in Zurich, too, are expected to regularly transport laboratory samples again between USZ and Irchel.
Recommendations from the expert board now fully implemented
Swiss Post places the utmost importance on safety in the field of drone logistics. For this reason, it has set up an expert board. The board is made up of independent aviation specialists and advises Swiss Post on safety matters. Following two incidents in 2019, the experts provided recommendations for increasing the safety of drone operations even further. Swiss Post and Matternet have now fully implemented these recommendations: Swiss Post will have its safety processes scrutinized on a continuous basis by an independent supervisory body. Matternet has further strengthened its existing safety team by employing a Head of Safety.
Flights to serve the healthcare sector
As a logistics specialist, Swiss Post wants to continue to harness the potential of drones – to the benefit of the healthcare sector in Switzerland. The advantages of drone logistics have now been proven: drones are quicker, more efficient and ecological than a courier travelling by road. They are also unaffected by traffic jams. This means that they offer significant added value to patients, doctors and specialist staff, particularly in the health sector, where transport of items is often urgent. Swiss Post is performing worldwide pioneering work in autonomous drone logistics that benefits patients. Pioneering work means that processes are continually being developed. Standards for drone use can be established thanks to the experiences of Swiss Post, and this can help the entire industry in Switzerland.
Source : https://www.post.ch/en/about-us/media/press-releases/2020
4. UNI joins U.S. postal workers’ demands to #SaveThePostOffice
August 24,2020
Representing more than 2.5 million postal workers worldwide, UNI Global Union stands in solidarity with its postal union affiliates in the United States of America. The statement comes as U.S. postal workers are holding a day of action on 25 August 2020 to #SaveThePostOffice.
Despite the recent announcement by Postmaster General Louis DeJoy that the U.S. Postal Service will suspend a slate of proposed changes, UNI remains alarmed by recent attempts to weaken the USPS during the pandemic and reduce its capacity to process millions of mail ballots before the Presidential election on 3 November.
“The United States Postal Service is being held hostage by a government intent on doing everything in its power to block postal voting in the run up to the election and undermine a trusted, necessary institution. The postal service, in the United States and globally, is a public good and a key function of government, not a pawn in an election campaign,” says UNI General Secretary Christy Hoffman.
UNI is strongly opposed to any measures that cause delays to the postal service, particularly during the heightened needs of a pandemic. Millions of American citizens rely on the postal service for prescription deliveries and social security and disability payments.
“The intentional degrading of the post office is undermining the physical and financial health of Americans while attempting to strip people of their most basic right in a democracy,” adds Hoffman. “Furthermore, this appears to be part of an overall right wing plan to undermine government, including popular, necessary services like Post.”
Source :https://www.uniglobalunion.org/news
5. Canada Post segment reports $378-million loss before tax in second quarter
August 21, 2020
OTTAWA – Canada Post recorded a loss before tax of $378 million in the second quarter of 2020. This increased loss was largely due to the significant impact COVID-19 had on revenue and costs, combined with the added costs stemming from the June 2020 arbitrator’s ruling. The ruling resulted in new collective agreements with the Canadian Union of Postal Workers (CUPW).
As the country responded to COVID-19, Canadians turned to Canada Post to provide an essential service. With people at home and businesses closed, the Corporation saw a dramatic shift in what it was asked to deliver. Online shopping drove unprecedented growth in Parcels volume and revenue, but because Canadians and businesses mailed and advertised less, the Transaction Mail and Direct Marketing volume and revenue decline exceeded the growth in Parcels.
The estimated total revenue shortfall due to COVID-19 was $46 million while increased costs related to COVID-19 were an estimated $118 million. The total negative financial impact due to COVID-19 was an estimated $164 million.
The arbitrator’s ruling on June 11, 2020 concluded a comprehensive process that followed weeks of rotating strikes in late 2018. The new collective agreements, one for urban employees and another for Rural and Suburban Mail Carriers (RSMCs), added net costs of $114 million in the second quarter. Most of this was related to expanded eligibility for post-employment healthcare benefits for RSMCs.
The segment recorded a loss before tax of $444 million on revenue of $3.3 billion for the first two quarters of 2020. That compares to a loss before tax of $27 million, also on revenue of $3.3 billion, for the first two quarters of 2019. Although COVID-19 and the new collective agreements with CUPW contributed to the loss, the Canada Post segment would have still incurred a loss without these factors.
Parcels results
Early in the second quarter, Parcels volumes were as high as in past peak Christmas seasons as, with physical stores closed due to COVID-19, Canadians met their needs by shopping online. Parcels revenue grew by $226 million, or 35.411 per cent, in the second quarter and by $279 million, or 23.3 per cent, for the first two quarters, compared to the same periods in 2019. Volumes grew by 26 million pieces or 35.5 per cent in the second quarter, and by 30 million pieces or 21.2 per cent in the first two quarters of 2020, compared to the same periods in 2019.
Transaction Mail results
Transaction Mail is mostly letters, bills and statements. Ongoing revenue and volume declines accelerated as businesses and Canadians used digital alternatives even more during COVID-19. In the second quarter, Transaction Mail volumes fell by 102 million pieces or 14.7 per cent and revenue decreased by $104 million or 15.4 per cent, compared to the same period in 2019. Over the first two quarters of 2020, Transaction Mail volumes fell by 132 million pieces or 8.2 per cent, and revenue fell by $120 million or 7.7 per cent, compared to the first two quarters of 2019.
Direct Marketing results
Customers were already delaying or cancelling marketing campaigns due to COVID-19 as the quarter began, adding to the impact of ongoing digital substitution. Direct Marketing revenue declined by $126 million or 46.4 per cent in the second quarter and by $152 million or 28.2 per cent for the first two quarters of 2020, compared to the prior year.
Volumes fell by 652 million pieces or 53.4 per cent in the second quarter and by 778 million pieces or 33.7 per cent in the first two quarters, compared to the same period last year.
Group of Companies results
The Canada Post Group of Companies reported a loss before tax of $333 million in the second quarter of 2020, which was a $344 million change from a profit before tax of $11 million for the same quarter in 2019.
This loss was due to the Canada Post segment. For the first two quarters of 2020, the Group of Companies recorded a loss before tax of $386 million, a decrease in profitability of $436 million, compared to the same period in 2019. It is estimated that COVID-19 contributed $194 million to this loss.
The Purolator segment recorded a profit before tax of $39 million in the second quarter of 2020, a decrease of $13 million compared to the same period last year. For the first two quarters of 2020, Purolator recorded a profit before tax of $49 million, a decrease of $15 million compared to the same period last year.
Background
The operations of the Canada Post Group of Companies are funded by the revenue generated by the sale of its products and services, not taxpayer dollars.