USPS announces a $2bn loss in Q2

USPS prices

For Q2 2019, USPS reported total revenues of $17.5bn, a decrease of only $8m compared to Q2 2018.

Total operating expenses were $19.6bn, an increase of $751m (4%), when compared to the same period last year. Excluding costs impacted by actuarial revaluation, discount rate changes, and amortization of unfunded liabilities, which are outside of management’s control, expenses increased by $154m, or 0.8%, compared to the same quarter last year.

The net loss for Q2 increased by $747m to $2.1bn compared to a loss of $1.3bn in Q2 2018. However, the controllable loss for the quarter was $806m, compared to a controllable loss of $656m for the same quarter last year.

In terms of segments; First-Class Mail revenue declined by $217m (3.3%), on a volume decline of 576m pieces, or 3.9%, compared to the same quarter last year. Marketing Mail revenue declined by $155m (3.9%), on a volume decline of 959m pieces, or 5.2%, compared to the Q2 2018. Meanwhile, Shipping and Packages revenue increased by near 5% or $253m, on volume growth of 5m pieces, or 0.3%, compared to the same quarter last year. Overall volumes decreased by 4.4% compared to Q2 2018.

Chief Financial Officer and Executive Vice President Joseph Corbett, said, “We continue to face challenges from the ongoing migration of mail to electronic alternatives, and we are legally limited under current law in how we can price our products and streamline our legacy costs. Within the framework of our current business model, we are executing to grow revenue and reduce operating expenses.”

Source: United States Postal Service