USPS financial results: Second-quarter revenue grew 4.7 percent

Package volumes rose 11.4 percent during the second quarter, USPS reported May 10.

Package volumes rose 11.4 percent during the second quarter, USPS reported May 10.

The Postal Service has reported operating revenue of $17.7 billion for fiscal 2016’s second quarter (Jan. 1-March 31, 2016), an increase of $788 million — or 4.7 percent — compared to the same period one year earlier.

The increase was attributed to an 11.4 percent increase in package volumes and pricing strategies.

“While we have been successful in achieving controllable income during the quarter, we are still reporting net losses and contending with long-term financial challenges,” said PMG Megan J. Brennan. “We continue to focus on improving operating efficiencies, speeding the pace of innovation and increasing revenues for the Postal Service.”

Controllable income for the quarter was $576 million compared to $313 million for the same period last year.

Net loss for the quarter was $2 billion compared to $1.5 billion one year ago.

During the second quarter, USPS expanded work hours and its transportation network, taking more trips and increasing miles flown, Chief Financial Officer Joseph Corbett reported.

“This largely resulted from strategic business decisions enacted to accommodate package growth and enhance service across the country,” he said.

Brennan added, “I am grateful to our dedicated employees who helped us to achieve controllable income this quarter, but we cannot let this result mask the financial challenges we face. Our financial situation is serious, but solvable. We are confident that we can return to financial stability through the enactment of prudent legislative reform and a favorable resolution of the upcoming regulatory review of our rate-setting system.”

The May 10 news release has more information, and complete financial results are in the Form 10-Q.

Source: USPS News Link

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