USPS volume, revenue, service decline
The quarter ending Dec. 31 was a hard one for the U.S. Postal Service. Revenue and mail volume were down. Expenses were up. And service performance fell off. At a meeting of the Board of Governors Feb. 8, chief financial officer Richard J. Strasser, Jr., reported that revenue was down 1.4 percent and expenses increased 4.0 percent compared to the same period last year. The decline was expected because the spike in mail volume during the election year 2004 increased revenue by 12.6 percent, said Strasser. The 3.8 percent loss of First-Class Mail volume compared to the same period last year cost $415 million in revenue. Standard Mail volume increased during the same period, as did Express Mail and Priority Mail, but the revenue generated from those services is not enough to offset the lost revenue from First-Class Mail, Strasser said. Mail service declined in all of its three main categories, according to Postmaster General John E. Potter. First-Class Mail overnight service dropped a point from the 95 percent performance record, which had been held since it was set in 2003. Second day performance was 88 percent, two points below the same period last year. Three day was 83 percent, down three points from last year. Deputy Postmaster General and Chief Operating Officer Patrick R. Donahoe said the service scores in the quarter are a reflection problems resulting from Hurricanes Katrina and Rita. In other action, the Board approved funding for development and testing of a Remote Encoding System (RES) program, and it approved the redirection of funds toward the development and testing of a Flats Sequencing System (FSS). Retiring Chief Financial Officer Richard J. Strasser, Jr., received the coveted John Wanamaker Award at the meeting. Wendy A. Hocking was named the first woman Secretary of the Board, and committee assignments were made.
