USPS Net Income Rises in March

Share this content:

The U.S. Postal Service generated net income of $295 million before escrow allocation during March, according to financial and operating statements the agency released.

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, enacted in 2003. That law 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 assessing its financial position.

After the escrow allocation, the financial position for March shifts to a net gain of $45 million.

USPS revenue of $6.59 billion for March was $189 million (3 percent) over plan and $424 million (6.9 percent) more than for March 2005. Expenses were virtually on plan, totaling $6.3 billion.

Year-to-date (Oct. 1, 2005, to March 31, 2006) net income before escrow allocation was $1.57 billion, or $147 million over plan. The YTD net gain after escrow allocation was $74 million.

Total mail volume for March was 18.9 million pieces, up 1.5 percent from the year-ago period. Volumes in all major categories except Express Mail and International Mail surpassed their March 2005 levels. Most of the increase for March 2006 occurred in Standard Mail, which rose 2.3 percent to 9.2 million pieces.

Year to date, total mail volume was 109.2 million pieces, up 0.2 percent over the year-ago period. First Class volume was down 1.3 percent, Standard was up 1.5 percent and Priority was up 7.0 percent.

close

Next Article in Direct Mail

Sign up to our newsletters

Company of the Week

USAData helps businesses find new customers and grow their current customers through a combination of data and digital marketing services, and easy-to-use SaaS technology products. We enrich customer data so businesses can more effectively target and communicate with customers, and connect them with their best look-alike prospects through digital and traditional channels. We make it easy through simple, self-serve applications and APIs, as well as through full-service programs managed by our Data and Digital experts. 

Find out more here »

Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here

Relive the 2017 Marketing Hall of Femme

Click the image above