No surprises in USPS third quarter earnings report

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.

Reader comments

Fri, Aug 17, 2018 MPE-Level9

Simple- get rid of the lazy union goons in the Maintenance Dept. Most couldn't hold a job anywhere else and actually can't do the job they were hired for.

Sat, Aug 11, 2018 GoldenBoy

just go to 5 day delivery , privatize, or both

Fri, Aug 10, 2018 Larry R. Florida

Since nobody knows (or will admit) who put the provision into the bill that requires USPS to set aside $5B each year for 10 years for future retirees that have not even been hired, Why won't one of our esteemed legislators introduce and pass an amendment that deletes this requirement? Result is a $3.5B profit vs $1.5B loss.

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Contributors

Edward A. Zurndorfer Certified Financial Planner
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