- 10 May 2016
- Transport / Logistics Services
The embattled US Postal Service (USPS) has reported that its operating revenue for Q2 of fiscal year 2015 was up to $17.7bn, an increase of 4.7% against the same period last year.
According to the postal operator, revenue growth was “primarily due to an 11.4% increase in Shipping and Package volume and pricing strategies”.
Despite Q2 controllable income was up from $313 million last year to $576 million, USPS still reported a net loss of $2bn compared to a $1.5bn loss in Q2 of 2015. This net loss was, according to the operator, “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.”
USPS appears hamstrung by outdated infrastructure and a poorly funded pension fund that are both accounting for huge losses. To add to this, it recently had to drop its prices for postal delivery that will only add to its woes due to the demands by Congress that aren’t managing it in the way that a private company’s management might….