The USPS has reported a total revenue of US$17.5bn (£13.5bn) for the second quarter of fiscal 2019 (January 1-March 31), a decrease of $8m (£6m) compared to the same quarter last year.
According to the report, first class mail revenue declined by US$217m (£168m), or 3.3%, on a volume decline of 576 million pieces compared, and marketing mail revenue declined by US$155m (£120m), or 3.9%, on a volume decline of 959 million pieces to the same quarter last year. Shipping and packages revenue increased by US$253m (£195m), or 4.9%, on volume growth of five million pieces compared to the same quarter last year.
Total operating expenses were US$19.6bn (£15bn) for the quarter, an increase of US$751m (£580m), or 4.0%, compared to the same quarter last year. Excluding costs affected by actuarial revaluation, discount rate changes, and amortization of unfunded liabilities, which are outside of management’s control, expenses increased by US$154m (£119m), or 0.8%, compared to the same quarter last year.
“The Postal Service continues to pursue aggressive management actions and to seek legislative and regulatory reforms to address our overall cost structure and enhance revenue-generating opportunities,” said postmaster general and CEO Megan J Brennan.
“Our focus remains on meeting the expectations of the American public, continuing to invest in the future of the organization, and continually delivering innovations and increased value for both the senders and receivers of mail and packages.”
The net loss for the quarter totaled nearly US$2.1bn (£1.6bn), an increase of US$747m (£577m), compared to a net loss of US$1.3bn (£1bn) for the same quarter last year. However, the controllable loss for the quarter was US$806m (£622m), compared to a controllable loss of US$656m (£507m) for the same quarter last year.
“We continue to face challenges from the ongoing migration of mail to electronic alternatives, and we are legally limited under current law in how we can price our products and streamline our legacy costs,” said chief financial officer and executive vice president Joseph Corbett. “Within the framework of our current business model, we are executing to grow revenue and reduce operating expenses.”
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