USPS Reports $1.5 Billion Loss
Mail volume for the U.S. Postal Service (USPS) continued to decrease in the second quarter, contributing to the agency's $1.5 billion net loss.
The quarter that ended March 31 saw a $223 million (1.3 percent) increase in operating revenue over the same time last year that was driven by a 14.4 percent growth in shipping and packaging. However, First-class and standard mail declined by 2.1 and 1.1 percent, respectively.
“Shipping and package services are a key business driver, however, operating margins in this business are lower than in mailing services,” said Joseph Corbett, USPS chief financial officer and executive vice president.
The retiree health benefit prefunding expense continues to plague the USPS. Minus that expense, the loss would have dropped to 44 million, and last year's second quarter net loss, which was 1.9 billion, would have decreased to $447 million without including that expense.
In addition, operating expenses declined by $160 million while controllable income increased $52 million.
“We’re pleased with the increase in our controllable net income compared to the same period last year, which demonstrates that our cost containment and revenue strategies are delivering results,” said Postmaster General and CEO Megan Brennan. “We also took significant steps during the quarter to improve our long-term operating model, which will help drive greater long-term efficiencies throughout our network.”
See the complete financial results at www.usps.com.