U.S. Postal Service Reports Revenue Growth
May 10 2016 - 10:20AM
Dow Jones News
The U.S. Postal Service said its revenue rose 4.7% in the latest
quarter thanks to stronger shipping volume and price increases.
For the three months ended March 31, USPS said revenue increased
to $17.73 billion from $16.95 billion a year earlier. Overall
volume rose 1.4%, driven by 11% growth in shipping and package
volume.
The USPS has been striving to increase its share in an
e-commerce market long dominated by United Parcel Service Inc. and
FedEx Corp. However, the growth in USPS's shipping volume also has
contributed to rising costs, including an increase in hours worked
and transportation expenses. During the latest quarter, operating
expenses increased 7.4%.
Excluding special items, such as prepaying retiree health
benefits and certain changes in workers' compensation expenses,
USPS reported that its controllable income rose to $576 million
from $313 million a year earlier.
But over all, USPS reported a loss of $2.04 billion, compared
with a year-earlier loss of $1.47 billion.
"While we have been successful in achieving controllable income
during the quarter, we are still reporting net losses and
contending with long-term financial challenges," Postmaster General
and Chief Executive Megan J. Brennan said in a statement.
During February, the USPS posted its first quarterly profit
since 2011, earning $307 million after a holiday delivery season
that beat expectations due in part to more flexibility from its
unions regarding the hiring of seasonal workers.
Looking ahead, USPS has been anticipating added pressure on
results with the April 10 expiration of an exigent surcharge, which
contributed $519 million to operating revenue in the March
quarter.
Write to Tess Stynes at tess.stynes@wsj.com
(END) Dow Jones Newswires
May 10, 2016 10:05 ET (14:05 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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