USPS records $5.5 billion loss
The US Postal Service has announced the results for the latest financial year – it has recorded a $5.5 billion loss, its eighth consecutive yearly loss. The loss figure for the 12 months up to the end of September was worse than the $5 billion loss recorded for the 2013 financial year. But, it included $5.7 billion in allocated but unpaid funds for future retiree healthcare liabilities.
Without the unpaid payment, USPS operational profit was $1.4 billion, compared to a $1 billion operational loss in 2013.
Revenue grew by $569 million in the latest financial year to $67.8 billion, thanks in part to record package business growth and a postal rate increase.
Package and express services saw 9.1% year-on-year increase in their revenue. Postal rate rises including a temporary exigent increase to counter the impact of the 2009 recession, meant that Standard Mail achieved a 3% year-on-year rise in revenue while even First Class Mail grew its revenue, by 0.8% compared to the 2013 fiscal year.
The figures issued were unaudited, as the Postal Service is currently investigating whether its final figures were compromised by a recent computer hacking incident.
Patrick Donahoe, the Postmaster General who is set to retire in February, hailed the latest results and the two consecutive years of revenue growth at the Post Office.
“We are making strong progress in many core areas of our business — from operational performance, to data and technology use, to developing and marketing new products and services — all of which are helping to build a strong foundation for the future of the organisation,” he said.