The United States Postal Service (USPS) has released its first quarter fiscal results for 2019, which show the operator made a total revenue of US$19.7bn (£15.2bn), an increase of US$553m (£427.6m) or 2.9% compared to Q1 2018, which was bolstered by an increase of US$218m (£168.5m) (4.9%) in marketing mail revenue.
Shipping and packages revenue increased by US$516m (£339m) (8.7%) compared with Q1 2018, while first class mail revenue fell by US$81m (£62.6m) (1.2%). The figures also showed USPS made a a net loss of US$1.5bn (£1.1bn), an increase of nearly US$1bn (£77m) compared with the same quarter last year, owing to increased operating costs.
“We continued to drive growth in our package business and expanded use of the marketing mail channel during the quarter. Nevertheless, we face ongoing financial challenges. We remain focused on aggressive management of the business, legislative reform, and pricing system reform, all of which are necessary to put the Postal Service on firm financial footing,” said postmaster general and CEO Megan J Brennan.
“Our nation is best served by a financially sustainable postal service that can invest in its future and meet the evolving mailing and shipping needs of the American public.”
The controllable loss for the quarter was US$103m (£79.6m), compared with controllable income of US$353m (£272.9m) for the same quarter last year.
“Overall volumes increased this quarter driven primarily by growth in marketing mail and our package business, which resulted in total revenue growth of US$553m [£427.6m],” said chief financial officer and executive vice president Joseph Corbett.
“This growth was offset by increased work hours and related salaries and benefits, increases in transportation costs due to these higher volumes, and the continued focus on meeting customers’ needs.”
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