‘We face ongoing financial challenges:’ USPS CEO on business instability
“We face ongoing financial challenges,” is how USPS CEO describes the company’s first quarter results of fiscal 2019.
The postal services supplier announced today the financial results which signal the business instability.
USPS net profit saw a saw decline of $1.5bn (£1.1bn) in the quarter starting on 1st October and ending 31st December 2018. That’s an increase of net loss by nearly $1.0bn (£770k) from the same time last year. However, the total revenue was $19.7bn (£15.22bn). That’s a 2.9% increase, compared to the same quarter the previous year.
First-class mail revenue experience a decrease of $81m (£62m). That’s 2.8% down on year-on-year (YoY) rate. Meanwhile, marketing mail saw an increase of $218m (£168m). That’s 4.6% up on YoY rate.
“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. 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.”
– Megan J. Brennan, postmaster general and cheif executive office, USPS
The controllable loss for the quarter saw $103m (£79.5m). Whereas, controllable income was $353m (£272m) for the same quarter in 2018.
“Overall volumes increased this quarter driven primarily by growth in Marketing Mail and our package business, which resulted in total revenue growth of $553 million. This growth was offset by increased work hours and related salaries and benefits, increases in transportation costs due to these higher volumes and the continued focus on meeting customers’ needs.”
– Joseph Corbett, chief financial officer and executive vice president, USPS