Mail Volume Decline Tied to Housing, Finance Slumps
Mail volume was down 3%, or 1.7 billion pieces, for the first quarter of fiscal 2008, according to preliminary data from the U.S. Postal Service.
Standard mail volume decreased 2.6% and first class mail volume decreased 3.9% for the quarter ended Dec. 31.
USPS chief financial officer and executive vice president H. Glen Walker attributed this to downturns in the finance and housing industries, both of which are heavy users of the mail.
Net income for the first quarter is estimated at $672 million on revenue of $20.4 billion.
“Although revenue is higher than in the same quarter last year, due to the price increase last May, it is $500 million less than expected,” said Postmaster General Jack Potter, in a statement. “We’re working to offset the disappointing revenue with cost reductions and new strategies for growth.”
The USPS will release final first-quarter results next month.
