USPS Net Income Rises in March

Share this article:

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.

Share this article:
You must be a registered member of Direct Marketing News to post a comment.
close

Next Article in Direct Mail

Sign up to our newsletters

Follow us on Twitter @dmnews

Latest Jobs:

More in Direct Mail

Delivered: Birthday Deals Mailers

Delivered: Birthday Deals Mailers

What's in our mailbox this month: Birthday Deals. See which ones are good deals—and which ones you shouldn't deal with.

USPS Commissions Brain Research on Direct Mail

USPS Commissions Brain Research on Direct Mail

The Office of the Inspector General seeks neuroscientists to investigate human responses to digital and physical media.

Direct Mail Remains Impactful

Direct Mail Remains Impactful

Even in this prolific digital age, direct mail proves to be a strong tool for marketers. Standard mail volume is growing at 3% and marketers will spend $45 billion on ...