USPS Reports $586 Million Net Loss in Q3

PrintAction Staff
August 10, 2015
By PrintAction Staff

The U.S. Postal Service reported a net loss of US$586 million for the third quarter of fiscal 2015 (April 1, 2015 to June 30, 2015), which is actually a reduction of US$1.4 billion from the net loss of US$2 billion for same period last year. The world’s largest mail system, however, saw double-digit growth in shipping and package revenue.

Operating revenue of the U.S. Postal Service (USPS) was $16.5 billion (all figures in US dollars) for the third quarter of 2015, essentially unchanged from the same period last year. The USPS ended the second quarter of fiscal 2015 (January 1, 2015 to March 31, 2015) with an operating revenue increase of $223 million, or 1.3 percent, over the same period last year, but also recorded a net loss of $1.5 billion for the quarter.

In the third quarter of 2015, shipping and package revenue and volume increased by 10.6 percent and 13.4 percent, respectively, from the same quarter last year. “The continued growth of our shipping and package services is a direct result of the Postal Service’s continued efforts to offer consumers more choice, excellent value and reliable service in a growing and competitive marketplace," said Postmaster General and CEO Megan Brennan. “We are investing in our network and continually enhancing our services to best compete for America’s shipping and package delivery business.”

Total mail volume of 36.8 billion pieces in the third quarter of 2015, however, decreased by 738 million pieces from 37.5 billion pieces. A price increase impacting certain mail classes went into effect on May 31, 2015; however this was offset by declining mail volumes as First-Class Mail and Standard Mail volumes fell 2.6 percent and 2.1 percent, respectively, compared to the same period last year.

 “The combination of growing package revenues and improved productivity gains were not sufficient to offset mail volume declines and inflationary pressure, largely due to contractual increases in operating expenses, including wages, benefits and transportation." said Chief Financial Officer and Executive Vice President Joseph Corbett. "This underscores the need for a combination of continued sales growth, productivity gains and legislation to ensure the Postal Service can return to financial health and meet its public service obligations.”

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