USPS May Have Another $1 Billion Surplus
Unless there’s a sudden and sharp decline in mail volume and revenue, the U.S. Postal Service appears to be heading toward its fourth $1 billion surplus in as many years.
As of mid-July, according to CFO M. Richard Porras, the USPS had net income of $1.1 billion. He cautioned it could dip slightly between now and the end of the postal service’s fiscal year because “of the seasonal nature of the business, and added program and labor costs.”
Although quarterly gross revenue rose an average of 3%, Porras says expenses have steadily risen over revenue because of existing labor contracts “and increased spending on programs designed to support our corporate objectives,” which include completing the automation program, overhauling various facilities, and improved service. As of May 22, when its third quarter ended, the USPS had net income of $1.4 billion on total revenue of $42.3 billion, 4.2% above the previous year’s net of $1.3 billion on gross revenue of $40.8 billion, says Porras.
