No surprises in USPS third quarter earnings report
- By FederalSoup Staff
- Aug 09, 2018
The U.S. Postal Service reported a $1.5 billion loss in the third quarter of fiscal 2018, along with a continuing decline in mail delivery.
USPS attributes the $1.5 billion net loss to its retirement and retiree health benefits obligations.
“The root cause of our financial instability is a flawed business model that is imposed by law. We encourage the Congress to engage in a broad public policy discussion and pass postal reform legislation,” Postmaster General and CEO Megan J. Brennan, said in news release.
Total mail volume declined by a combined 397 million pieces, or 1.2 percent, compared to the same quarter last year, but shipping and packages revenue increased by $475 million, or 10.2 percent.
Revenue, however, did grow for the third quarter; up $402 million to 17.1 billion, an increase of 2.4 percent, compared to the same quarter last year.
Despite the few gains, USPS is again urging regulatory action.
“We support legislation under consideration in the current Congress which would provide immediate flexibility to the organization, allow the Postal Service to invest in our future and continue to provide the prompt, reliable, efficient and universal service the public expects.”
Brennan added that continued aggressive postal management action and regulatory changes, including a less rigid and more responsive pricing system, are also needed to help the agency remain afloat.