USPS Cuts Losses in Half, Volume Declines in 2002
The U.S. Postal Service has reported a net loss of $676 million for fiscal 2002, down from an initial estimate of $1.35 billion.
The postal service lost $1.7 billion in fiscal 2001.
Speaking at the monthly meeting of the USPS Board of Governors, Postmaster General Jack Potter attributed the reduced loss to “the agency’s aggressive program to hold the line on expenses.”
Total revenue for the year was $66.7 billion, an increase of $819 million over 2001. Fiscal 2002 ended Sept. 30. Potter attributed the revenue increase to the early settlement of the rate case last June and the earlier-than-expected implementation of the new rates.
Overall mail volume for fiscal 2002 was 203 billion pieces, off 4.6 billion-pieces from last year.
Richard Strasser, CFO and executive vice president, noted that the postal service achieved cost reductions totaling $1.45 billion during the fiscal year. Total expenses were held to $67.4 billion, which was $185 million below 2001 expenses.
Prudent fiscal management has allowed the Postal Service to reduce its debt this year by $200 million, rather than increasing debt by $1.6 billion as originally planned at the beginning of the fiscal year, Strasser said.
In other activity, the BOG approved an appropriations request to Congress of $416 million for fiscal year 2004 to cover free mail for the blind and overseas voting materials, the annual payment for revenue forgone–payments due the postal service for previous costs incurred on nonprofit mailings–and emergency preparedness costs.
