USPS posts $195 million operating profit in January

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USPS financial results for January: click to enlarge

The US Postal Service posted an operating profit of $195 million in January, helped by a 2% revenue increase compared with the same period last year. That brings the USPS year to date profit to just over $1.3 billion. As usual, however, the USPS will make non-cash bookkeeping entries mandated by Congress that will turn the profit into a paper “loss” of $1.4 billion for the month, and $2 billion for the year to date. (The artificial charges include $1.9 billion for the year to date portion of the annual “trust fund” payment that the USPS will not actually make, and $1.5 billion for changes to estimated future workers comp liabilities.)

The increase in revenue was driven largely by growth in first class mail volume, which increased by 1.4% compared with a year ago, with first class revenue up by 5.5%. Shipping and package volumes were up by 5.4%, but that increase yielded less than one percent uptick in revenue. Standard mail volume, which had been up in the first quarter due in part to political mailings, was down by 3.3%, although revenue was up slightly.

Download the full report (.pdf file)

  • fred

    For those who continue to believe the postal service continues to rack up profits
    and is in excellent financial condition, please look up “accrual
    accounting” in a search engine. Ignoring liabilities, just because they
    aren’t currently due, does not make them go away. This is called reality.

  • postalnews

    Sorry, but you’re wrong. The trust fund payments have nothing to do with “accrual accounting”. The amounts of the payments were arbitrarily set by Congress in the PAEA law passed in 2006. You can Google “accrual accounting” all you like, but you won’t find it defined as “arbitrary debits enacted by Congress”! This is called the truth.

  • freecountry

    Come on Fred. Defend your ignorant statement!!

  • retired too

    You take out a 30 year mortgage. Most folks would think the entire amount is due in 30 years. Ahh, but the bank decides they want their money in 5 years, cough it up. You naturally agree since you don’t want to ignore your liability. If that was reality you’d be broke.

  • Getstraight

    Before you post, or open your mouth, make sure you know the FACTS!