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Operations

USPS reports 1.4% revenue growth in Q2 2018 results

Hazel KingBy Hazel KingMay 14, 20182 Mins Read
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The US Postal Service (USPS) has reported total revenue of US$17.5bn for the second quarter of 2018 (January 1-March 31), which is an increase of US$235m (1.4%) compared to the same quarter last year. 

Shipping and Packages revenue grew by US$445m (9.5%), while First Class and Marketing Mail revenue fell by a combined US$181m (-1.7%), reflecting multi-year trends of growing package volumes and declining letter volumes. 

Package volume grew by 69 million pieces (5%), while mail volumes declined by 700 million pieces (-2.1%) compared to the same quarter in 2017. 

“Despite growth in our package business, our financial results reflect systemic trends in the marketplace and the effects of an inflexible, legislatively mandated business model that limits our ability to generate sufficient revenue and imposes costs upon us that we cannot afford,” said Postmaster General and CEO Megan J Brennan. 

“America needs a financially strong postal service that can invest in its future and can continue to fulfil the needs of American businesses and consumers. With continued aggressive management and greater legal authority to respond to changes in our marketplace and to control our costs, the Postal Service can return to financial sustainability.” 

Total operating expenses were US$18.8bn for the quarter, an increase of US$1.0bn ( 5.7%) compared to the same quarter last year. Net loss for the second quarter totalled US$1.3bn, compared to a net loss of US$562m for the same period in 2017. 

“The continued secular decline in First Class mail, rising costs and legislative and regulatory constraints resulted in larger losses this quarter,” said chief financial officer Joseph Corbett. 

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