USPS Generates Net Deficiency for June
The U.S. Postal Service generated a net deficit of $11.9 million before escrow allocation during June, according to financial and operating statements.
The Civil Service Retirement System Funding Act requires the USPS to place $3 billion in an escrow account by Sept. 30 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, the postal service's net deficiency for June becomes $261.9 million.
USPS revenue for June was $5.94 billion, or 0.4 percent under plan and 5.6 percent more than June 2005. Expenses for the month were $5.96 billion, or 0.7 percent under plan and 4.4 percent more than June 2005.
Total mail volume in June was 17.2 billion pieces, or 1.0 percent higher than in June 2005. By class, Priority Mail rose 3.6 percent, Standard Mail 1.0 percent and First Class 0.5 percent. Package Services decreased 6.2 percent, International Mail 3.2 percent, Express Mail 3.1 percent and Periodicals 0.5 percent.
Year-to-date revenue through June is 3.9 percent higher than the same period last year and is $386 million above plan. Year-to-date expenses are 4.2 percent higher than the year-ago period and $222 million over plan.
Year-to-date net income before escrow allocation is $1.66 billion. However, the net deficiency after the escrow allocation is $594.5 million.
Year-to-date total mail volume was 161.3 billion pieces, or 0.9 percent higher than the same period last year. A major year-to-date volume increase is in the Priority Mail category, up 5.1 percent. Year-to-date, Periodicals has had the greatest decrease, down 0.7 percent.