USPS Generates Net Income of $103 Million in April
The U.S. Postal Service generated net income of $103 million before escrow allocation during April, according to financial and operating statements.
Contributing to the performance was the new postage rate structure implemented Jan. 8, which provided a 5.4 percent revenue increase, needed to fulfill the Postal Civil Service Retirement System Funding Act.
After the escrow allocation, USPS' financial position for April shifts to a net deficiency of $147 million.
USPS revenue of $5.88 billion for April was $58 million, or 1 percent, over plan, and $115 million, or 2.0 percent, more than for April 2005. Expenses were virtually on plan.
Total mail volume in April was 1.9 percent less than last year, and mail volumes in all major mail categories were below April 2005 levels.
However, the USPS said April 2006 had 25 delivery days and 20 business weekdays, while April 2005 had 26 delivery days and 21 business weekdays.
Year-to-date, net income before escrow allocation is $1.66 billion or $186 million over plan. Year-to-date, the net deficiency after escrow allocation is $89 million.
Year-to-date revenue is 2.8 percent higher than the same period last year and is $346 million above the year-to-date plan.
Expenses year-to-date are 3.8 percent higher than the same period last year, and are $160 million above the year-to-date plan.
Year-to-date, total mail volume is 82 million pieces fewer than the same period last year. First-Class Mail volume is 1.4 percent below the same period last year. Standard Mail and Priority Mail volumes are 1 percent and 5.9 percent above last year, respectively.
The Civil Service Retirement System Funding Act required the USPS to place $3 billion in an escrow account by Sept. 30, 2006, to cover the difference between the CSRS retirement costs before and after the law's implementation. The USPS said it is allocating $250 million monthly for purposes of reconciling its financial position.