Troy Lathan, a mail handler, works at the Baltimore Processing and Distribution Center in December.
The Postal Service has reported its financial results for fiscal year 2020’s first quarter (Oct. 1-Dec. 31, 2019). Here are some highlights:
• Revenue. Total revenue was $19.4 billion, down 1.8 percent from the same period one year earlier. First-Class Mail revenue declined 2.5 percent, while Marketing Mail revenue fell 5.4 percent. Shipping and packages revenue increased 2.3 percent.
• Volume. Total volume was 37.8 billion pieces, down 6.2 percent from the same period one year earlier. First-Class Mail volume declined 3.8 percent, while Marketing Mail volume was down 7.9 percent, primarily due to the high level of political and election mail in October 2018 and November 2018 that was not replicated during the same months in 2019. Shipping and packages volume declined 4.6 percent.
• Expenses. Total operating expenses were $20.1 billion. Excluding non-cash fair value adjustments to the workers’ compensation liability, total expenses were essentially flat compared to the first quarter of fiscal year 2019.
• Net loss. The net loss for the quarter totaled nearly $748 million, a decrease in net loss of $789 million compared to a net loss of $1.5 billion for the same quarter one year earlier.
“We demonstrated once again the power of our unrivaled network and our ability to provide solutions for our customers while growing package volumes during our peak period. Package revenue for the quarter grew by $146 million. However, overall volumes and mail revenues for the quarter were down, and we continue to face systemic profitability challenges due to our restrictive business model and mandated costs,” said Postmaster General Megan J. Brennan.
“We will continue to aggressively pursue opportunities to generate profitable revenues and drive greater operational efficiencies under our current structure, while also seeking legislative and regulatory reforms to allow the Postal Service to better invest in our business, compete for customers, control our costs and serve the evolving needs of the public.”
The Postal Service’s financial results in Form 10-Q are available at usps.com.
Source: USPS