Excluding the effects of a $1.7 billion change in its workers’ compensation liability due to fluctuations in interest rates, the Postal Service has posted a net loss of approximately $200 million for fiscal 2017’s first quarter (Oct. 1-Dec. 31, 2016).
USPS also reported that net income for the quarter was approximately $1.4 billion. Controllable income was $522 million, a decrease of $735 million when compared to the same period last year.
Operating revenue decreased by $155 million, driven by the April 2016 expiration of the exigent surcharge, which caused revenue to decline by approximately $570 million when compared to fiscal 2016’s first quarter.
The exigent surcharge expiration and continuing migration to electronic communications also contributed to a 7.5 percent decrease in First-Class Mail revenue compared to the same period one year earlier.
Due to a record holiday season, shipping and package revenue grew by $701 million, or 14.7 percent, when compared to the same period last year.
“Our current financial situation is serious, but solvable,” said PMG Megan J. Brennan.
She added that enactment of legislation to improve the USPS business model, combined with a favorable outcome of the Postal Regulatory Commission’s 10-year pricing system review and continued aggressive management actions, would allow the Postal Service to return to financial stability.
The Postal Service’s Feb. 9 news release has more information.