The U.S. Postal Service reported net income of $1.65 billion for its fiscal year that began Sept. 30, up from a net loss of $1.95 billion last year.
Revenue for the period was $32.8 billion, compared with $31 billion last year.
Speaking before the USPS Board of Governors Tuesday, CFO Richard Strasser attributed this performance to improved productivity, expense reductions and the 7.7% postage rate increase last July.
“The expense reduction came despite absorbing rising fuel costs, the impact from the severe snowstorms in the East this winter, and inflation in health benefits that will exceed $500 million for the year,” Strasser said.
Much of the savings came from shortening work hours. “Our plan called for a reduction of 40 million work hours this fiscal year,” Strasser noted. “We’ve already reduced them by 31 million.”
Strasser noted that mail volume growth was flat, largely due to the economy and uncertainty over the war in Iraq.
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