Postal Service sees net loss of $297M for fiscal Q1 2010
The US Postal Service reported a net loss of $297 million for the fiscal first quarter of 2010. The agency also saw revenue decline 3.9% for Q1 2010, which ran from October 1 to December 31, 2009.
Operating revenue declined 3.6% year-over-year to $18.4 billion from $19.1 billion for the same period of the prior year. Mail volume also declined nearly 9% year-over-year to 45.7 billion pieces from 50.2 billion pieces, according to a statement from the USPS.
The Postal Service also disclosed that it cut work hours for the first quarter by more than 28 million.
“Unfortunately, economic drivers that significantly affect mail volumes, such as continuing high unemployment levels and lower investments, appear to be lagging general economic recovery and last quarter's growth in GDP,” said Joseph Corbett, EVP and CFO of the USPS, in a statement. “This situation, coupled with the growth in electronic alternatives to mail, creates a very challenging environment.”
The USPS reported a net loss of $3.8 billion for the 2009 fiscal year, as well as a 9.1% drop in operating revenue to $68.1 billion from $74.9 billion the year before.
The Postal Service is also in the process of determining what branches to close or consolidate.