The Postal Service released its second quarter results today. The results demonstrate that USPS finances are continuing to improve with the economy.
Here’s what you need to know:
- Second quarter revenue rose by $379 million, representing a 2.3 percent increase year-over-year.
- Shipping and package revenue continues to see dramatic growth, with an 8 percent increase year-over-year.
- The growth in shipping and package revenue continues to offset declines in letter mail volumes. In the first 6 months of FY 2014, shipping and package revenue increased by $730 million, while letter mail declined by only $40 million.
- 100 percent of the Postal Service red ink in the first 6 months of FY 2014 is a direct result of a crippling and unnecessary congressional mandate.
Since October of 2012, the Postal Service operated at a profit and is expected to reach its projected $1.1 billion operating profit at year-end. It would be counter-productive to cut and degrade a network that is producing such significantly improved results.
Instead of tearing down the network, lawmakers should offer real reform that builds on the Postal Service’s unmatched network and eliminate unnecessary congressional burdens such as the needless mandate to pre-fund retiree healthcare.