Postal Service loses $451 million in January
The US Postal Service reported a net loss of $451 million in January when mail volume at the organization decreased 1.3% year-over-year to 13.7 billion pieces. The organization, which has said it could run out of money this fiscal year, decreased work hours by 3.3% in January, compared with the prior year.
January operating revenue at the USPS decreased 2% year-over-year to $5.5 billion.
In the first four months of its 2011 fiscal year, the USPS has reported a total net loss of $781 million. The Postal Service's total mail volume has been flat so far this fiscal year, increasing 0.9%, according to data provided by the Postal Regulatory Commission.
Revenue from mailing services, the vast majority of the organization's business, dropped 2.5% in January to $4.8 billion. The Postal Service saw revenue from shipping services increase 1.7% year-over-year to $701 million during the month. Total postal service revenue was down 2% year-over-year to $5.5 billion in January.
For the first four months of fiscal year 2011, revenue from mailing services decreased 3.1% to $20.1 billion, while revenue from shipping grew 1.7% year-over-year to $3.3 billion. Total revenue for the fiscal year to date dropped 2.5% year-over-year to $23.4 billion.
The US Postal Service does not comment on monthly numbers, said Greg Frey, PR representative for delivery, online services, post offices and retail.