The Postal Service has reported its financial results for fiscal 2019’s third quarter (April 1-June 30). Here are some highlights:
• Revenue. Total revenue was $17.1 billion, essentially flat from the same period one year earlier. First-Class Mail revenue declined 1.6 percent, while Marketing Mail revenue declined 3 percent and Periodicals revenue declined 11.2 percent. Shipping and packages revenue increased 4.8 percent.
• Volume. Total volume was 33.7 billion pieces, down 4.2 percent from the same period one year earlier. First-Class Mail volume declined 2.7 percent, Marketing Mail volume declined 4.7 percent, Periodicals volume declined 12.8 percent, and shipping and packages volume declined 3.2 percent.
• Expenses. Total operating expenses were $19.3 billion, up 4.3 percent from the same period one year earlier. Excluding costs resulting from factors that are outside of management’s control, expenses increased by 1.2 percent compared to the same quarter last year.
• Net loss. The net loss for the quarter totaled almost $2.3 billion, an increase of $767 million, compared to a net loss of almost $1.5 billion for the same quarter last year.
“We continue to face imbalances in our business model that must be fixed through legislative and regulatory change. As we work to effectuate that change, we continue our ongoing aggressive management actions and remain focused on delivering for the American public and meeting their evolving business and residential needs,” said Postmaster General Megan J. Brennan. “We are actively adapting to changes throughout the mailing and shipping landscape, providing customers with new solutions that add value for their investment, improve the service we provide and drive internal efficiencies.”
Brennan added that the Postal Service’s largely fixed and mandated costs continue to rise at a faster rate than the revenues that can be generated within a constrained business model, which is ill-suited to ensure the long-term sustainability of USPS.
The Postal Service’s Aug. 9 news release has more information.