USPS had $1.3 billion in controllable income during the first quarter, up from $1.1 billion one year earlier, Chief Financial Officer Joe Corbett reports in his latest “Dollars and Change” video.
“The credit belongs to our hard-working and dedicated employees,” Corbett says.
Other factors include revenue innovations, continued growth in the package business and the exigent price increase.
The first quarter was Oct. 1-Dec. 31, 2015. Controllable income is defined as net loss excluding expenses related to the mandated prefunding of retiree health benefits and other factors largely outside management’s control.
First-quarter net income was $307 million. This compares to a $754 million net loss one year earlier due to a $1.2 billion reduction in non-cash worker’s compensation adjustments.
Operating revenue rose 3.3 percent, driven by continued growth in the package business.
The Postal Service still needs legislation that fixes its retiree health benefits issue and provides additional revenue through pricing changes, Corbett says.
“We had a good quarter and should be proud, but we’re not out of the woods yet,” he says.