USPS Expects to Post Net Income of $1.3 Billion
The U.S. Postal Service expects to report a net income of $1.3 billion in fiscal year 2006. But this will be offset by expense growth of $3.4 billion for the year.
The postal service also anticipates a revenue increase of 3.4% over last year due to the rate hike that will take effect early next year, chief financial officer Richard Strasser told the USPS Board of Governors meeting Tuesday.
The fiscal year ends Sept. 30.
The USPS also expects to report total volume of 213 billion pieces, with an estimated 2.4% drop in first class and a 3.6% increase in standard mail.
Strasser noted that the postal service’s financing plan for fiscal year 2006 calls for a $3.1 billion escrow payment to pay down the retirement costs of former employees. Since Congress has not passed and the President has not signed any postal reform legislation, the USPS is still saddled with this obligation (Newsline, July 26)
