The U.S. Postal Service reported net income of $3.9 billion for the year ended Sept. 30, exceeding its financial plan for fiscal year 2003 by $300 million, largely as a result of changes in the way it calculates its retired employee’s pensions.
The USPS reiterated its pledge to hold rates steady until 2006.
USPS CFO Richard Strasser unveiled these results at the Postal Service’s Board of Governors meeting Tuesday.
These results took place despite declining mail volume.
Earlier this year, Congress changed the law about how the USPS funds its pensions for retired employees.
Total mail volume in 2003 dropped by less than 1% (600 million pieces in the second consecutive year that mail volume fell.
Most of the loss in volume came from first-class mail.
As the economy rebounded in 2003, advertising mail and package volume increased, nearly offsetting the 3.3-billion-piece first-class class mail volume loss. Mail volume continues to be below the fiscal year 2000 averages.
“This year’s increase in advertising mail and packages did not provide us with as much revenue as the same amount of First-Class Mail would have,” said Strasser, noting a $1.7 billion revenue shortfall, in a statement.
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