Citing a volatile economy, the US Postal Service reported a net loss of $707 million for its second quarter, which ended on March 31.
The loss resulted from a “continued decline in mail volume resulting from the current national economic climate,” according to the USPS. The results were presented at the Postal Service Board of Governors’ meeting today.
Overall mail volume is down 3.3% year-over-year, the USPS said. First-Class Mail dropped by 3.1% while Standard Mail decreased by 3% during the same time period.
Second quarter revenue was $18.9 billion, a year-over-year increase of 3.2%. The USPS called the increase “well below expectations.”
Expenses for the second quarter equaled $19.6 billion, an increase of 0.3% compared to the previous year. The increase was due to higher transportation costs, particularly fuel, the USPS said.
“For the first six months of the fiscal year, the Postal Service has essentially broken even, reporting a net loss of $35 million on revenue of $39.3 billion,” the USPS said.
“While mail volume may rebound with the economy, it is clear we need to accelerate our efforts to seek new structural and process changes to remain economically viable and to further improve customer service,” Postmaster General John Potter told the board, according to a press release.
The USPS said it will continue to focus on “reducing costs and increasing efficiency.” USPS rates are also due to increase on May 12.
