USPS Reports Quarter 1 Finances

The Postal Service has reported its financial results for fiscal 2019’s first quarter (October 1 - December  31, 2018). Here are some highlights:

• Revenue. Total revenue was $19.7 billion, up 2.9 percent compared to the same period one year earlier. First-Class Mail revenue declined 1.2 percent, while Marketing Mail revenue increased 4.9 percent. Shipping and packages revenue increased 8.7 percent.

• Volume. Total volume was 40.2 billion pieces, up 1.3 percent from the same period last year. First-Class Mail volume declined 2.8 percent, while Marketing Mail volume grew 4.8 percent. Shipping and packages volume increased 5.4 percent.

• Expenses. Total operating expenses were $21.2 billion for the quarter, a 7.9 percent increase from the same period one year ago. Excluding the effect of a $621 million non-cash workers’ compensation expense increase resulting from changes in interest rates and actuarial assumptions, operating expenses would have been $20.6 billion for the quarter, a 4.8 percent increase compared to the same quarter last year. The remaining operating expense increase was largely driven by increases in compensation and benefits due to additional hours and contractual wage adjustments, and transportation costs due to higher fuel costs and highway contract rate inflation.

• Net loss. The net loss for the quarter totaled $1.5 billion, an increase in net loss of almost $1 billion compared to the same quarter last year.

“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 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.”