USPS Reports Net Deficiency of $268 Million in July
The U.S. Postal Service generated a net deficit of $268 million before the escrow allocation during July, according to financial and operating statements released by the agency yesterday.
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 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 July becomes $518 million.
USPS revenue for July was $5.5 billion, or 0.5 percent under plan and 4.1 percent more than July 2005.
Expenses for the month were $5.8 billion, or 0.4 percent and 4.3 percent more than same period last year.
Total mail volume in July was 16.1 billion pieces, or 1.1 percent lower than in June 2005. By class, Package Services increased 4.2 percent, Priority Mail 2.9 percent, and International Mail 3.6 percent. Periodicals decreased 10.9 percent, Express Mail decreased 2.4 percent, First Class decreased 1.3 percent and Standard Mail decreased 0.9 percent.
Year-to-date revenue through July is 0.6 percent or $364 million higher than plan and 3.9 percent above the same period last year . Year-to-date expenses are 0.5 percent or $295 million higher than plan and $ 2.4 billion above the year-ago period.
Year-to-date net income before escrow allocation is $1.3 billion. However, the net deficiency after the escrow allocation is $1.2 billion.
Year-to-date total mail volume was 177.4 billion pieces, or 0.8 percent higher than the same period last year.
A major year-to-date volume increase is in the Priority Mail category, up 4.9 percent. Year-to-date, Periodicals has had the greatest decrease, down 1.7 percent.