USPS Q2 – another fall in income

The US Postal Service (USPS) has posted a second quarter net loss of $3 billion, a $0.8 billion more than the same quarter in 2020. This was however on revenues that grew 4.8% year on year to $18.5 billion.

The fall in income was attributed to revaluations and the effects of non-cash workers compensation adjustments.

Among other highlights, First Class Mail revenue grew by $54 million or 1% on volume growth of 1.1%. Marketing Mail revenue revenue grew by 42.2% on volume growth of 38.6%. Shipping and packages revenue fell by 7.8%, though volumes remain higher than pre-pandemic levels.

“We believe consumer behaviour has evolved during the pandemic and our Shipping and Packages volumes are not expected to return to pre-pandemic levels, as the nation has increasingly relied on the safety and convenience of e-commerce,” it said. “However, competition in the overall market has increased as certain major customers have returned to diverting their volume from our network and aggressively pricing their products and services to fill their networks and grow package density.”

USPS CFO Joseph Corbett said in a statement that even though quarterly financials pointed to an ongoing net loss, its “Delivering for America plan outlines its clear strategies to structure the USPS for success.

By implementing this 10-year plan in full, we expect to operate in a financially self-sustaining manner within the next several years while continuing to fulfil our universal service mission,” he said.