USPS reports $17.7bn Q2 revenue
US Postal Service (USPS) has reported that its operating revenue for the second quarter (Q2) of fiscal year 2016 was $17.7bn, up 4.7% on the same period last year. USPS said that revenue growth was “primarily due to an 11.4% increase in Shipping and Package volume and pricing strategies”.
Although Q2 controllable income was up from $313m last year to $576m, USPS still reported a net loss of $2bn – compared to a $1.5bn loss in Q2 2015. USPS said that the change in net loss was “most significantly impacted by a $547 million unfavorable change in the workers’ compensation expense as a result of interest rate changes – a factor outside of management’s control”.
US Postmaster General and Chief Executive Officer Megan J. Brennan commented: “While we have been successful in achieving controllable income during the quarter, we are still reporting net losses and contending with long-term financial challenges.
“We continue to focus on improving operating efficiencies, speeding the pace of innovation, and increasing revenues for the Postal Service.”
Brennan added: “I am grateful to our dedicated employees who helped us to achieve controllable income this quarter, but we cannot let this result mask the financial challenges we face.
“Our financial situation is serious, but solvable. We are confident that we can return to financial stability through the enactment of prudent legislative reform and a favorable resolution of the upcoming regulatory review of our rate-setting system.”
