USPS Q3 Loss is $740 Million, Despite Efficiency Efforts
The Postal Service also continues to implement efficiency measures and continues its actions to better align staffing levels with projected mail volume. In the first nine months of the current fiscal year:
- 104 mail processing facilities were consolidated
- 7,397 Post Offices reduced operating hours as part of Post Plan
- 258 new Village Post Offices were established
- 1,156 delivery routes were consolidated or reduced
- Career employee work hours reduced by approximate 41 million
- Non-career employee work hours increased by approximately 30 million.
Third Quarter Results of Operations Compared to Same Period Last Year
- Total mail volume of 37.9 billion pieces compared to 38.3 billion pieces. The nine-month total volumes were 120.2 billion pieces and 121.2 billion pieces in 2013 and 2012, respectively.
- First-Class Mail revenue decreased 0.9 percent on a volume decrease of 3.4 percent in the third quarter. In the nine months ended June 30, 2013 First-Class Mail revenue decreased 2.2 percent while volume was down by 4 percent.
- Standard Mail revenue increased 3.0 percent on a volume increase of 1.0 percent; year-to-date revenues were up 2.9 percent on a 1.9 percent increase in volume.
- Shipping and Package revenue increased 8.8 percent on a volume increase of 7.1 percent; for the nine months ended June 30, 2013 revenue was up 7.5 percent with volume up 5.7 percent.
- Operating revenue of $16.2 billion, an increase of 3.6 percent compared to $15.6 billion. Revenue for the nine month periods ending June 30, 2013 and 2012 was $50.2 billion and $49.5 billion, an increase of 1.3 percent.
- Operating expenses of $16.9 billion compared to $20.8 billion. The large decrease reflects the fact that this year the Postal Service is accruing amounts for one Retiree Health Benefit prefunding payment in contrast to two payments last year and a $918 million decrease to workers’ compensation expense due to interest rates. The fiscal year-to-date operating expenses are down by $7.1 billion from $61.0 billion to $53.9 billion, which represents a decrease of 11.7 percent.
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