USPS finances – Third-quarter results reported
The Postal Service has reported its financial results for fiscal year 2021’s third quarter (April 1-June 30). Here are some highlights:
• Revenue. Total operating revenue was approximately $18.5 billion, up 4.8 percent compared with the same quarter one year earlier. First-Class Mail revenue increased 1 percent, while Marketing Mail revenue increased 42.2 percent. Revenue from shipping and packages decreased by 7.8 percent.
• Volume. Total volume was approximately 30.6 billion pieces, up 15.1 percent from one year earlier. First-Class Mail volume increased 1.1 percent, although volume remained lower than pre-coronavirus-pandemic levels and continued declines are expected. Marketing Mail volume grew 38.6 percent as the economy continues to recover. Shipping and packages volume fell 14.1 percent as a pandemic surge in demand for package deliveries began to abate, although volume remained higher than pre-pandemic levels.
• Expenses. Total operating expenses were approximately $21.4 billion, an increase of 8.3 percent. Excluding costs resulting from actuarial revaluation, discount rate changes and amortization of unfunded liabilities, which are outside of management’s control, expenses increased by 1.7 percent compared with the same quarter one year earlier.
• Net loss. The Postal Service reported a net loss of approximately $3 billion, compared with a net loss of approximately $2.2 billion for the same quarter last year. Excluding the combined effects of noncash workers’ compensation adjustments due to fluctuations in discount rates and other actuarial revaluations, the loss for the quarter would have been approximately $2.3 billion, compared with a loss of approximately $2.4 billion for the same period one year earlier.
“Our improved service performance during the quarter is largely the result of significant organizational focus on implementing core elements of our Delivering for America plan,” said Postmaster General Louis DeJoy.
“We are transitioning from an outdated network and operational posture that was ill-equipped to handle the effects of the pandemic on the mix of mail and packages we process — and we expect this volume shift to continue into the foreseeable future. As we establish our new network design and deploy our operating initiatives, we will operate with much greater efficiency and precision, become financially self-sustaining, and deliver greater value to the American public we serve.”
The Postal Service’s Form 10-Q, available on the usps.com Financials page, has additional information.