The US Postal Service (USPS) reported a net loss of US$586m for the third quarter (Q3) of the 2015 fiscal year, a reduction of US$1.4bn when compared with the net loss of US$2bn for same period last year. The group also recorded growth of 10.3% in shipping and package revenue, and a 13.4% increase in parcel volumes for the same period.
Operating revenue remained steady at US$16.5bn for the quarter as price increases for certain mail classes were offset by declining mail volumes in first-class mail by 2.6% and standard mail by 2.1%. The price changes came into effect on May 31, 2015.
Megan Brennan, Postmaster General and CEO of USPS, said, “The continued growth of our shipping and package services is a direct result of the postal service’s continued efforts to offer consumers more choice, excellent value and reliable service in a growing and competitive marketplace. We are investing in our network and continually enhancing our services to best compete for America’s shipping and package delivery business.”
Joseph Corbett, chief financial officer and executive vice president, USPS, said, “The combination of growing package revenues and improved productivity gains were not sufficient to offset mail volume declines and inflationary pressure, largely due to contractual increases in operating expenses, including wages, benefits and transportation. This underscores the need for a combination of continued sales growth, productivity gains and legislation to ensure the postal service can return to financial health and meet its public service obligations.”
August 11, 2015
