USPS reports second-quarter financial results

Arlington, VA, Letter Carrier Andy Lac delivers mail in March, toward the end of fiscal 2017’s second quarter.

The Postal Service has reported its financial results for fiscal 2017’s second quarter (Jan. 1-March 31, 2017). Here are some highlights:

• Controllable income. USPS posted controllable income of $12 million for the second quarter, below the $576 million it posted during the same quarter last year.

Controllable income describes net income (or loss) that is adjusted for items outside of management’s control.

The reduction in controllable income was driven by the expiration of the exigent surcharge, a temporary price increase that was in place from January 2014-April 2016.

• Operating revenue. Operating revenue — which describes revenue from day-to-day business activities — was $17.3 billion, a decrease of $474 million from the same period last year.

Revenue from First-Class Mail decreased $606 million and revenue from Marketing Mail declined $331 million, due largely to the exigent surcharge expiration and lower volumes.

• Shipping. The second-quarter declines in First-Class Mail and Marketing Mail revenue were somewhat offset by continued growth in the shipping and packages business, which increased $486 million — or 11.5 percent — compared to the same period last year.

• Net loss. The net loss for the quarter declined to $562 million from a $2 billion net loss a year ago because USPS benefited from declines in operating expenses outside of management’s control.

These expenses include lower retiree health benefit expenses due to changes that took place in fiscal 2017 according to law, and lower workers’ compensation expense due to interest rate changes.

“America deserves a financially stable Postal Service that can continue to play a vital role in our economy and society. The path forward depends on continued innovation and aggressive management actions, the passage of HR 756 into law, combined with a favorable outcome of the Postal Regulatory Commission’s 10-year pricing system review,” said PMG Megan J. Brennan.

“With these actions, the Postal Service will have the financial stability to invest in our future and continue to be an engine of growth, to be a strong business partner, and to meet the expectations of the American public.”

For more information about the second-quarter financial results, read the Postal Service’s May 10 news release:

Source: Financial results | USPS News Link

3 thoughts on “USPS reports second-quarter financial results

  1. Union and NAME of Local/Branch
    APWU Oakland Ca
    Past or current office held, if any
    Leg.Dir (Ret.)
    Very moving post, Delilah. This is why we can never give up the struggle. Thank you for this.

  2. Union and NAME of Local/Branch
    Springfield MO
    Nor is there any comment of Supervisors working 12 to 14 hours a day, getting paid for 8. Yes, take away from one group of people and keep adding onto Supervisors as if the whole of Distribution Plants and Associate Offices aren’t understaffed already. Like the Government, it’s too top heavy. The work gets done by the people on the floor, they make the mail move. More consideration for the welfare of these individuals should be safeguarded not minimized. These people work hard, I believe upper management should take necessary actions to know what is needed by being on the floor and observing, and stop being yes men with no reality to what is going on.
    Like the Government, some criminals are owed from the people on top. So you get corruption, and the descent people are walked on and made wrong. I can see why the people need a Union to represent them.
    Sorry, it still breaks my heart to have known a very sweet girl who wanted to go home after working 10 hours and exhausted. She asked to be excused from overtime, was denied, and was killed from an auto accident a few minutes from the facility. My heart aches for this type of mistreatment. We are people, not robots. We have needs: family, sleep, food, time, etc Please, I beg you, we all lead different lives, let the overtime be a choice. Give the Supervisors their due pay as well as those committed to do whatever it takes to get the job done, there is a lot of sacrifice these people endure. It should be noted.

  3. Union and NAME of Local/Branch
    APWU - Syracuse, NY
    Notice the postmistress general does not mention once – service to the American public.

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