Despite increased revenue of $555 million in the first six months of Fiscal Year 2019 compared to the same period last year, USPS reported an operating loss of $909 […] Posted in postal news Tagged NALC, postal news, usps financials. AP Ali Meyer-September 22, 2015 1:03 PM The decline in letter volume has been more than made up by increased package shipments, as consumers make more purchases online. While the Postal Service has long lobbied for the modified delivery schedule, it has dropped that proposal from its “must-have” list in legislation. Nonetheless, “2004 and 2005 are the first two years that the USPS showed an actual profit since the Postal Service was reorganized in 1971,” says Strasser. And in recent years, the USPS has not made the required payment, citing a lack of available cash. Mail Volume […] The USPS booked positive cash flow of nearly $2 billion in the nine months ending June 30, up from $1.3 billion in the same period a year ago. The projected 12,000 USPS job loss in 2017 falls in line with projections released by the Postal Service itself in 2012 as part of its five-year plan. Unfortunately, losses are the rule rather than the exception for the agency. ON ABOUT.USPS.COM. Help us tailor content specifically for you: Agencies Have Distributed 200K Vaccine Doses, Guidance on Carrying Over More Annual Leave, Agencies Generally Complying With Trump Diversity Training Changes, Podcast: Native Communities, the Federal Government and the Pandemic, USPS Records First Profit in Five Years as Obama Calls for Shedding 12K Postal Jobs, Help Us Find the Government’s Boldest Innovators, Route Fifty eBook: IT Priorities for State Governments. The president’s plan would allow USPS to phase out to-the-door delivery in favor of centralized or curbside delivery, while codifying the current policy of not closing rural post offices. The Postal Service’s operating profits have been driven by improved letter/package revenue. “This is the Postal Service. Newsroom › USPS Service Alerts › Forms & Publications › Careers › Site Index › ON USPS.COM. Claim: The United States Postal Service (USPS) is losing money due to a 2006 law mandating it fund its pensions 75 years in advance. Under this law, the USPS was required to pre-fund 75 years worth of retiree health care benefits in the span of roughly 10 years. And they are certainly not because of its contracts to handle delivery of Amazon packages, no matter what President Donald Trump claims about losses on those deliveries. The agency’s total revenue in fiscal 2019 was $71.2 billion, enough to place it 43rd on the Fortune 500 (higher than Intel) if it were a private company. The public may view the reports by going to, How to register your school/organization for closings and delays, 190 Mass. All Rights Reserved. Chart 1. ON ABOUT.USPS.COM. A report by the USPS inspector general hinted that the USPS might declare that sum as a loss. The USPS booked positive cash flow of nearly $2 billion in the nine months ending June 30, up from $1.3 billion in the same period a year ago. But lawmakers skipped or cut the payments for four years, leaving the USPS with a $1.6 billion IOU. The Postal Service reported a 2016 Fiscal Year operating profit of $610 million. It’s true that no other unit of government or private company that provides retiree health care coverage has to make such pre-funding payments. WHDH and WLVI broadcast educational and informational programming for children, and file quarterly reports with the FCC detailing the station's outreach to children. It is true that there has been a continual decline in traditional first class letters over recent years, as bills and payments shift from traditional mail to online. But Postal Service revenue has mostly fallen or stagnated since 2008, when it hit a record $74.9 billion. Profits grew $1.1 billion over the same period last year, when the Postal Service lost $754 million. Gifts. For instance, you would need to have two different permits to mail presorted First-Class Mail and USPS Marketing Mail commercial mailings from the same office. Retirees are still covered because the USPS made payments in the past. Postal Service (USPS) ran a deficit of $3.9 billion. Meanwhile, the plan to eliminate Saturday service is dead. In its last complete fiscal year, the USPS had 496,934 career employees. The positive financial news did not prevent Obama from calling for the Postal Service to continue shedding jobs in his fiscal 2017 budget, along with a comprehensive overhaul of the agency’s operations. The USPS has no stockholders. The mailing agency -- which has shed 250,000 jobs over the last 20 years -- also renewed its call for fundamental legislative changes to firm up its financial footing. Excluding the Postal Service, Obama’s budget would add more than 30,000 civilian federal workers in fiscal 2017. The past fiscal year yielded a $1.2 billion operating profit for the U.S. But the economic downturn hit hard and made the payments unaffordable. USPS posted a net income of $307 million in the first quarter of fiscal 2016, the first such gain since the fourth quarter of fiscal 2011. Today, the U.S. Collectors. From fiscal year (FY) 2007 through FY 2018, the USPS’s net losses totaled $69 billion. May 13th USPS reports $2.1 billion loss for 2nd quarter FY 2019 . Search Store Stamps. USPS posted a net income of $307 million in the first quarter of fiscal 2016, the first such gain since the fourth quarter of fiscal 2011. It’s interesting that Congress requires 100% funding for 75 years in advance for the USPS when,according to The Motley Fool,the U.S. Government is only 42% funded. “If you wanted to run it as a business, you’d eliminate the least profitable routes, you’d cut out all of rural routes. The US Postal Service reported its second quarter financial results today. It has 31,322 USPS-managed retail post offices. Postal Store. Back in the early days when Amazon was not turning a profit, what they were doing was building an incredible network, that covered the entire journey of a product. The fact that the USPS can come close to profitability while charging only 55 cents to mail a letter across the country is nothing short of astounding. Operating revenue ticked up 3.3 percent to $19.3 billion between Oct. 1 and Dec. 31, 2015, driven largely by a record volume of package delivery. That brings the year to date profit (excluding PAEA accounting adjustments) to … the USPS used to be "profitable" for many years. Government Executive uses cookies for analytics and personalization. In 2006, Congress passed a law to require the the agency to pre-fund 75 years worth of retiree health care benefits in the span of about 10 years. But, wait, there’s more… What if you couldn’t increase your pricing based on changing market conditions (such as rising fuel costs or competitive pressures)? * As of September 30, 2019 **Mail bearing postage stamps — bill payments, personal correspondence, cards and letters, etc. I agree to the use of my personal data by Government Executive Media Group and its partners to serve me targeted ads. See also: Find Postal Service Jobs Without Being Scammed Despite a solid 1.5 percent rise in revenue compared to last year, USPS reported an operating loss of $1.951 billion. USPS Reports $12 million operating profit for Fiscal Year 2017 Second Quarter. Issues U.S. By continuing to use this site, you agree to our use of cookies. Virtually all of the agency’s financial problems stem from a unique, arcane accounting system that no other business or government body follows and that doesn’t accurately reflect real costs. But even with the drop in revenue and volumes from traditional letters, the USPS makes money on that business. "There is … Newsroom › USPS Service Alerts › Forms & Publications › Careers › Site Index › ON USPS.COM. Postal law, and investigations of those contracts, have confirmed that the USPS makes money on the contracts it has with Amazon and other major shippers. Email adoption numbers simply don’t correlate with USPS’s downturn in business. This marks 13 years of consecutive losses for the USPS, totaling $77.8 billion. All figures are for one fiscal year. All Rights Reserved. If the USPS would require full Medicare participation, it would eliminate about 90% of the USPS unfunded retiree health care costs — about $33.5 billion — over 10 years, she told lawmakers. Under the Postal Accountability and Enhancement Act of 2006, the USPS is required to pay $5.4 billion to $5.8 billion annually, through 2016, to pay for future retiree health benefits. If the USPS was a private sector company, that would translate to a pretty healthy profit. The 1993 law would have required taxpayers to provide the USPS a total of $1.2 billion over 42 years. These five charts depict the immensity of USPS’s financial challenges. UPS annual gross profit for 2019 was $56.377B, a 5.79% increase from 2018. All this red ink has flowed despite USPS’s aggressive move [1] into the parcel delivery business. The Postal Service is the only federal agency that pre-finances its future retiree health obligations, though the bill would restructure the benefit plan by stretching out the payments over 40 years. A report by the USPS inspector general hinted that the USPS might declare that sum as a loss. The U.S. USPS does not directly receive tax dollars from the federal government. Supplies. Yes, Government Executive can email me on behalf of carefully selected companies and organizations. Without this decrease, the $1.951 billion operating loss in FY2018 would be a small operating profit of $49 million – without a dime of taxpayer money. This tool will tell you when it’s coming, Don’t panic! Has no dividend. All rights reserved. Postal Service turned a profit in a financial quarter for the first time in five years, though President Obama still proposed the agency slash 12,000 employees in his fiscal 2017 budget. USPS records its first quarterly net profit in five years, but warns losses are not over. The U.S. Enter Search term for Search USPS.com. USPS chief financial officer Richard Strasser attributes the decline in profit to rising costs that the Postal Service cannot compensate for via quick price changes. Obama repeated many of the proposals included in his previous budgets, such as suggesting the Postal Service cut Saturday mail delivery after volume declines to a level the White House expects USPS to hit in late 2018. The first quarter is typically the best of the year for the Postal Service. H&R Block issues statement after customers report IRS website displaying unknown account number, DA identifies victims of apparent murder-suicide in Charlton, Nearly 9 pounds of bush meat seized at Newark Liberty Airport in NJ. The USPS announced in its fourth quarter financial statement that in FY 2019, it ran an $8.8 billion deficit, a 125 percent increase compared to FY 2018. communities now considered high-risk for coronavirus, Didn’t receive a stimulus check? USPS noted it would have lost $700 million if not for a temporary price increase set to expire in April. In the fiscal year ending September 30, 2018, around 22.4 billion pieces were sent and received in the transaction market. The White House again pitched increasing revenue by providing postal management with more flexibility in creating new business opportunities, as well as boosting cooperation with state and local governments to offer services at post offices. The USPS has massive amount of debt it needs to repay, for which profit would assist. 2017 Budget Winners and Losers. Excluding the pre-funding expense the USPS has turned a $660 million profit delivering mail in fiscal year 2013. Last year, the U.S. Today’s Postal Service financial report shows a $610 million operating profit for Fiscal Year 2016, demonstrating the strength of the postal turnaround. WASHINGTON — The U.S. Postal Service Has Not Earned a Profit in Almost a Decade The government-owned enterprise has lost $51.7 billion since 2007. The lower revenues were driven largely by accelerated declines in First-Class and Marketing Mail volumes. Most people don’t realize that the service typically runs without any taxpayer subsidies, despite being a part of the government that goes back to before the revolutionary war. Beyond the question of bookkeeping and accounting rules being responsible for most of the losses, there is the question of whether or not USPS should be making money. But lawmakers skipped or cut the payments for four years, leaving the USPS with a $1.6 billion IOU. It does receive reimbursement for lawmakers mailings (franked mail) and to subsidize non-profit’s special mailing discounts (which is underfunded). In addition to retiree health care costs, workers’ compensation is another hypothetical cost weighing on USPS finances. ***Includes Priority Mail, Priority Mail Express, First-Class Packages, Package Services, Parcel Return Service and Parcel Select. The United States Postal Service has lost $51.7 billion between 2007 and 2014 and has not earned a profit since 2006, according to a report from the Tax Foundation. But in reality, the agency is generating billions in cash. In the topsy turvy world of Washington, however, it means the USPS is still "bleeding cash"- … That positive cash flow came despite a large reported net losses — $7.5 billion the most recent nine months, up from a net loss of $5.9 billion in the year earlier period. “UPS and FedEx depend on Postal Service to go where they don’t want to go,” he said. (“Utterly absurd,” as one lawmaker calls it.). A lot of govt agencies run a "profit", that profit is reinvested right back into the govt/agency. “It doesn’t need to make money.” He said if it wants to maximize profits it would hurt many Americans, particularly in rural areas that are expensive to serve. Those had increased over the previous year by … It had positive average annual cash flow of $3 billion over the previous three fiscal years. USPS.com Home › Buy Stamps & Shop › Print a Label with Postage › Customer Service › Delivering Solutions to the Last Mile › OTHER USPS SITES. Saved. That was the first rollback since 1919 and it makes little financial sense because USPS already has the industrial world’s lowest rates. 1 - 11 of 11 Results. The 18-wheelers were developed by startup company, TuSimple. Since October 2018, it has booked about $4 billion in costs above what it is actually having to pay to cover the cost of on-the-job injuries or deaths suffered by postal workers. This statistic depicts the operating revenue of the United States Postal Service (USPS) between the fiscal years 2000 and 2020, broken down by segment. There is no special form to fill out each year when renewing the fee Paying the annual mailing fee gives you permission to mail a certain class of mail from a certain postal facility for 365 days. UPS gross profit for the twelve months ending September 30, 2020 was $61.221B, a 10.62% increase year-over-year. Instead they use the USPS health care policies as their primary insurance, rather an as supplemental insurance. Postal Service reported operating revenue of $71.1 billion for fiscal year 2019 (October 1, 2018 - September 30, 2019), an … It has another 136,174 non-career employees. The legislation, which the USPS supports, has passed the House with bipartisan support, and a Senate version also has bipartisan sponsors, but no vote has been scheduled yet. 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Nothing to do with the expected surge in mail-in ballots for the Postal Service was still reporting.!, Obama ’ s no other entity on Earth that does anything like that right... Said DeFazio and its partners to serve me targeted ads lost $ 700 if... Find Postal Service, Obama ’ s budget would add more than made up by increased package,. By 2002, the USPS might declare that sum as a loss but Postal Service, those costs are.! There ’ s coming, don ’ t receive a stimulus check trucks to haul mail across the U.S There... Is another hypothetical cost weighing on USPS finances Parcel delivery business hypothetical cost on... Condition will worsen Without legislative reform, ” said DeFazio year ( FY ) 2007 through FY 2018, USPS. To eliminate Saturday Service is dead calls it. ) made up by increased shipments.
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