The Postal Service has reported its financial results for the first quarter of fiscal year 2022 (Oct. 1-Dec. 31, 2021). Here are some highlights:
• Revenue. Operating revenue was approximately $21.3 billion, a decrease of 0.9 percent compared with the same quarter last fiscal year. Shipping and packages revenue decreased 7.9 percent, while Marketing Mail revenue increased 7.3 percent. First-Class Mail revenue increased 2.5 percent.
• Volume. Total volume was 35.1 billion pieces, down 4.1 percent compared with the same quarter the previous fiscal year. First-Class Mail volume declined 3.8 percent, while shipping and packages volume declined 9.7 percent. Marketing Mail volume declined 3.6 percent.
• Expenses. Operating expenses for the quarter increased $1.7 billion, or 7.9 percent, compared with the same quarter last fiscal year.
• Net loss. On a U.S. generally accepted accounting principles basis, the Postal Service had a net loss of approximately $1.5 billion for the fiscal year’s first quarter, compared with a net income of $318 million for the same quarter last fiscal year.
The adjusted loss for the quarter was $1.3 billion, compared with an adjusted loss of $288 million for the same quarter the previous fiscal year.
This excludes noncash workers’ compensation adjustments for the effects of actuarial revaluation and discount rate changes that are outside of management’s control.
Service performance improved during the first quarter and remained strong through the holiday surge, a result of improvements associated with the Delivering for America plan. These include network infrastructure investments, increased lease space, new package processing equipment and a push toward workforce stabilization.
“We continue to improve on-time service performance, as was demonstrated during the recent holiday period and which is the result of our ongoing transformation, investments and operating improvements across our processing and transportation network,” said Postmaster General Louis DeJoy. “We continue to make structural progress to correct our long-term financial losses, drive greater efficiency and achieve financial sustainability.”
In addition to the aggressive steps that management has undertaken, which are already producing positive service results, postal reform legislation is an integral part of the Postal Service’s recovery plan.
“We are encouraged that Congress is moving forward with postal reform legislation and strongly support enactment,” DeJoy said. “These reforms will help ensure that the Postal Service can operate in a financially sustainable manner.”
The Postal Service’s Feb. 8 news release has additional information.
