The US Postal Service recorded an operating surplus of $60 million in July, the first month of quarter 4 of fiscal year 2014. After factoring in PAEA required accounting entries, the USPS will report a paper “loss” of $340 million. For the year to date, that leaves the agency with an actual cash surplus of $1.2 billion, vs. a PAEA paper “loss” of $4.4 billion.
One bright spot in the report is the fact that first class mail volume, long in decline, stayed just about level with the same period last year (SPLY) for the second month in a row. First class revenue was up 5.8% over SPLY, thanks to price increases. Shipping and package revenue was up 7.3% on a volume increase of almost ten percent.
On the downside, standard (advertising) mail volume dropped by 2.1% compared to SPLY, although revenue increased by 3.1%, again thanks to price increases.
Salaries and benefits for current employees were slightly lower than SPLY.