USPS Net Income Stays Positive YTD Despite EscrowThe U.S. Postal Service generated net income of $606.1 million, before escrow allocation, from Oct. 1 to Nov. 30, according to financial and operating statements the agency released yesterday.
For the 2006 fiscal year to date, USPS net income was $140.6 million under budget. Net income after escrow allocation was $106.1 million.
The postal Civil Service Retirement System Funding Reform Act of 2003 requires the USPS, as of fiscal year 2006 (which began Oct. 1), to hold in escrow an amount equal to the difference between the CSRS retirement costs before and after the implementation of the law. The federal Office of Personnel Management calculates this amount, and based on the latest estimate the USPS is allocating $250 million per month.
Revenue totaled $12.0 billion, which was $244 million under budget and down 1.2 percent from the year-ago period. Expenses of $11.4 billion were $103.4 million under plan but up 3.3 percent from the year-ago period.
Year-to-date mail volume of 37.5 billion pieces was down 1.5 percent from the year-ago period. By class, Priority Mail rose 5.6 percent, Express Mail 5.1 percent, Package Services 4.9 percent, International Mail 4.7 percent and Periodicals 0.9 percent.
Only First-Class Mail decreased, falling 3.7 percent. Standard Mail did not change.
Melissa Campanelli covers postal news, CRM and database marketing for DM News and DMNews.com. To keep up with the latest developments in these areas, subscribe to our daily and weekly e-mail newsletters by visiting www.dmnews.com/newsletters