USPS announces $540m net loss in Q1


USPS has reported virtually unchanged revenues for the first quarter of FY17/18. At $19,192m, its revenues were just 0.02% lower year-over-year, due to an unsurprising decrease in first class and marketing mail volumes.

Its Shipping and Packaging service volumes were 6.9% higher in the quarter, leading to higher revenues in the segment (up 9.3%). Its International volumes were 2.1% lower, but its revenues were 8.8% higher.

The postal operators’ operating expenses were 11.0% higher at $19.7bn. It said this was due to a $1.4bn increase in workers’ compensation expense.

Overall, this meant the company produced a net loss of $540m, compared to a net income of $1.4bn in the previous year. Worryingly, USPS said that the first quarter is typically the Postal Service’s strongest quarter.

Postmaster General and CEO Megan J. Brennan, said, “Although we continue to win customers and grow our package business, these gains are not sufficient to offset continuing declines in our mail business, which is our main source of revenue and contribution. We will continue to do everything within our control to improve operating efficiencies, manage expenses, expand our use of technology and keep mail affordable, but these actions must be combined with regulatory and legislative changes.”

Source: USPS

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