Cargo Business Newswire

Wednesday, August 20, 2014

USPS posts $2B loss in Q3, shipping gains

The U.S. Postal Service posted its third quarter results with a net loss of $2 billion, compared to a net loss of $740 million for the same period in 2013, but continues to realize gains in its shipping and packing businesses

Shipping and package revenue was up 6.6 percent, USPS said, noting other revenue boosters including a mail price increase in January and successful sales and marketing initiatives.

Total operating revenue of $16.5 billion increased by $327 million, or 2 percent, year-over-year, according to the statement.

"We're seeing momentum in our package business and continued use of direct mail as an advertising medium," said Patrick Donahoe, postmaster general. "We've been effective in developing and marketing our products, and we're improving how we leverage data and technology - all providing a higher return on mail for many customers and causing them to take a fresh look at the Postal Service."

USPS noted that total operating expenses for the third quarter of 2014 were $18.4 billion, an increase of $1.5 billion from the same period last year, driven mainly by a workers' compensation fair value adjustment.

"Due to continued losses and low levels of liquidity, we’ve been extremely conservative with our capital, spending only what is deemed essential to maintain existing infrastructure," said Joseph Corbett, CFO and executive vice president. "To continue to provide world-class service and remain competitive, we must invest up to $10 billion to replace our aging vehicle fleet, purchase additional package sorting equipment, and make necessary upgrades to our infrastructure."

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