USPS Reports Income Decline
The U.S. Postal Service posted net income before escrow allocation of $1.28 billion for the nine months ended Aug. 31, off $28.5 million from net income of $1.5 billion for the same period last year. However, after escrow allocation, the USPS was in the red by $1.46 billion.
According to the USPS, the Postal Civil Service Retirement System (CSRS) Funding Act, enacted in 2003, required it to hold $3 billion in an escrow account by Sept. 30, to cover the difference between the CSRS retirement costs before and after the implementation of this law. As a result, the USPS has allocated $250 million per month to cover this cost.
Postal reform legislation that would address the need for an escrow allocation may be passed during a lame-duck session of Congress in November.
For the fiscal 2006 year to date ended Aug. 31, the USPS reported revenue of $66.8 billion, a 4.2% increase over $64.1 billion last year.
Total mail volume for the year to date was 195.4 billion pieces, a 0.8% increase over 193.9 billion pieces in the prior-year period.
Standard mail volume was 93.4 billion pieces a.8% jump over 91.8 billion pieces last year.
