USPS Generates Net Income of $6.2 Million in May
The U.S. Postal Service generated net income of $6.2 million before escrow allocation during May, according to financial and operating statements.
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.
After the escrow allocation, USPS' financial position for May shifts to a net deficiency of $256.2 million.
USPS revenue in May is 11.5 percent higher than the same period last year, and $66.9 million over plan.
Expenses in May are 7.7 percent higher than the same period last year.
Total mail volume in May was 1.3 billion pieces, or 8.0 percent higher than the same period last year. With the exception of Periodical Mail and International Mail, all of the major mail categories posted volumes above levels last year.
Year-to-date, net income before escrow allocation is $1.65 billion or $281.3 million over plan. Year-to-date, the net deficiency after escrow allocation is $354.4 million.
Year-to-date revenue is 3.8 percent higher than last year and is $411 million above the year-to-date plan.
Expenses year-to-date are 4.4 percent higher than the same period last year.
Year-to-date, total mail volume is 0.9 percent or 1.2 billion pieces above last year.
A significant mail volume increase over last year is in the Standard Mail category, which increased 1.4 billion pieces or 2.1 percent. Year-to-date, First-Class Mail volume is 0.6 percent less than the same period last year.