USPS Reports Income of $672 Million
The U.S. Postal Service reported net income of $672 million for the first quarter, compared to a loss of $2.7 billion last year.
The USPS posted revenue of $20.4 billion for the quarter ended Dec. 31, a 3.5% increase over $19.7 billion last year primarily due to the postage rate hike that took effect last May.
The price increase masked weak volume for the quarter. Total mail volume declined 3%, according to the USPS. First class mail was particularly affected, declining 3.9%.
During the quarter, standard mail volume decreased 2.6%.
Last week, 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 (Direct Newsline, Jan. 31).
Total expenses for the quarter were $19.7 billion, a decrease from $22.7 billion in the prior year. The USPS attributed this to a one-time expense of funding retiree health benefits required in this quarter by the Postal Accountability and Enhancement Act.
Without this cost, expenses remained constant despite rising fuel and labor costs, according to the USPS.
