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USPS finances

The Postal Service has reported its financial results for fiscal year 2021’s second quarter (Jan. 1-March 31). Here are some highlights:

• Revenue. Total revenue was approximately $18.9 billion, up 6 percent compared with the same quarter one year earlier. First-Class Mail revenue decreased by 6.1 percent, while Marketing Mail revenue declined 13.7 percent. Revenue from shipping and packages increased 33.6 percent. However, the demand for package deliveries during the coronavirus pandemic was not enough to offset increased operating costs and an ongoing decline in revenue from mail services.

• Volume. Total volume was approximately 30.7 billion pieces, down 9.8 percent from one year earlier. First-Class Mail volume dropped 7.9 percent, while Marketing Mail volume was down 13.5 percent. Shipping and packages volume increased 25.3 percent.

• Expenses. Total operating expenses, including noncash workers’ compensation adjustments, were $19 billion for the quarter, a decrease of 15.1 percent compared with the same quarter last year. Compensation and benefits expense increased 4.4 percent, primarily resulting from higher work hours associated with the package volume growth, contractual wage increases and an increase in paid leave associated with the pandemic. Transportation expenses increased 16.7 percent, primarily due to the effect of higher package volumes on air and highway transportation and shifts in average package dimensions.

• Net loss. The Postal Service reported a net loss of $82 million, compared with a net loss of approximately $4.5 billion for the same quarter last year. Excluding noncash workers’ compensation adjustments for each period, the loss for the 2021 second quarter would have been approximately $1.7 billion, compared with a loss of approximately $1.9 billion for the same quarter last year.

The quarter included the March 23 release of the Postal Service’s 10-year plan, Delivering for America, which aims to achieve service excellence and a return to financial sustainability while maintaining universal six-day mail delivery and expanding seven-day package delivery.

The plan also calls for investments in technology, training, Post Offices, a new vehicle fleet and the modernization of the USPS network, among other improvements.

“With our Delivering for America plan, the Postal Service will become a growth-oriented, high-performance organization that operates with greater precision, achieves 95 percent on-time delivery and does so at a lower cost to serve,” said Postmaster General Louis DeJoy. “As we undertake this transformation — for the benefit of our customers, employees and the American public — we will operate and invest as a going concern with service excellence, a bright future of growth and financial sustainability.”

The Postal Service’s Form 10-Q, available on the Financials page, has additional information.

Delivery saver

A referral from a Texas Postmaster has led to a shipping deal worth nearly $139,000 for the Postal Service.

After talking with a merchant who ships camping, survival and outdoor gear, Roy Russell of Grand Prairie submitted a lead through Business Connect, a program that allows Postmasters, managers and supervisors to alert USPS to customers who could benefit from postal products and services.

Anthony Sanchez, a Dallas District business development specialist, and Tarina Johnson, a field sales representative, followed up with the customer.

They closed a shipping deal worth $138,650 in new estimated annualized revenue for the Postal Service.

Sales generated from Business Connect leads count toward the USPS Power of One campaign to raise revenue through sales leads from employees.

“Our local Post Office leaders are in such a great place to be able to help their business customers save money and expand their reach,” said Mary Anderson, small-business engagement director at USPS headquarters in Washington, DC. “Roy saw a customer that could benefit, and now that customer is saving money on shipping and USPS has more revenue.”

The Postal Service is encouraging as many employees as possible to submit at least one lead through any of its six lead programs by Sept. 30. The Small Business Sales team is tracking program participation rates through its weekly “Drive to 35” downloadable report.

The Small Business and Lead Generation Programs Blue page has more information about Business Connect and the other employee lead programs: Clerks Care, Customer Connect, Mail Handlers, Rural Reach and Submit a Lead.

Health webinar

Postal Service employees can participate in an upcoming webinar to learn about the Federal Employees Health Benefits (FEHB) program and Medicare.

The session, “Medicare + FEHB,” will be held Monday, May 17, at noon EDT.

Brian Sperling and Mickey Basi, senior account managers for GEHA, a not-for-profit provider of health plans for federal employees, will conduct the webinar, which will explore how Medicare works with FEHB plans.

The session will also cover retirement and FEHB, Medicare as a USPS retiree and information on Medicare parts A, B, C and D.

Participants must register before the event on the webinar website. After signing up, directions for accessing the webinar will be emailed to each registrant.

Following the webinar, every registrant will receive an email with a link to an archived recording of the webinar along with the slides.

Participation is voluntary. Nonexempt employees may only participate off the clock or during authorized breaks.

For more information, email the USPS Health and Wellness team.