USPS reports $1.4 billion year to date operating profit through February

The US Postal Service reported an operating surplus of $76 million for the month of February, bringing its fiscal year to date profit to $1.4 billion. Those numbers reflect actual revenue and expenses, and do not include the non-cash accounting entries the USPS records every month to comply with the 2006 PAEA law. Ironically, the February numbers actually would look better using the PAEA figures, since they include a whopping $666 million paper “credit” for the change in valuation of future workers comp liabilities. Unfortunately for the USPS, that $666 million is just as ephemeral as the half billion or so the USPS charges to PAEA “trust fund” payments every month, even though it never actually makes the payments.

Leaving aside imaginary numbers, here are some of the highlights from the February report:

  • Total mail volume was down 1.3% from last February (SPLY) For the first five months of the fiscal year, volume is still slightly above SPLY, thanks largely to the large volume of political mail in the first quarter.
  • First class mail was down 1.8% from SPLY, while standard mail dropped by 1.5%.
  • Revenue from “market dominant” services (First class, standard and periodicals) was down by $48.5 million from the prior year.
  • Package and shipping service revenue more than made up for the decline in mailing revenue, up by $123 million.
  • Package services accounted for 23% of USPS revenue, up from 21% a year ago.
  • Total operating expenses (excluding PAEA) were up 2.2% compared to SPLY.
  • Total personnel expenses (excluding PAEA) were up by 3.1%.
  • Despite the decline in total volume, employees in the operating functions worked more hours than they did a year ago: City Delivery hours were up by 2.7%, Rural Delivery by 3.1%, Customer Service by 8.4% and Mail Processing by 1.4%.
    USPS February financials

    Click the image to enlarge


    Download the full report

  • Henry

    Less mail volume, more hours??? And still making money??

  • newahol

    just in time for the new Postmaster General to get a new bonus

  • downsize

    so shutting down all these facilities is not hurting us. stay the course postmaster general. GOOD JOB!!!!!!

  • not living the dream

    Sure more hours – they work the CCAs like dogs, us regular letter carriers can barely get to know their names as they are here one day and gone the next – as my supervisor states “we are only going to kept the best”. LOL – we only have about an 8% retention rate here for CCAs – the rest quit. As for volume give me a break – really! Is the USPS using the DOIS software? I have worked as a letter carrier for almost 30 years and ever since I hired in we have been told every year that mail volume has decreased this % and that %. If I had kept track over the years we at this point are delivering a big fat zero – come to think of it what am I doing out there all day – there shouldn’t be anything to deliver. I’m so confused…

  • downside

    so you have been doing this for 30 years and you have not quit yet! I’m so confused.

  • bob

    it makes cents to eliminate saturday mail !!! deliver parcels on saturdays and sundays

  • Renee

    Aw no, to deliver no stopping Saturday delivery, Monday’s mail volume is bad enough now….they’ve no clue what goes on in mail volume, never an even flow, our sorting facility has hard enough time getting mail on our trucks to get to our offices each day in a timely fashion so carriers can get mail worked & out for delivery. Poor management on way upper level.

  • vitameatavegamin

    Ironic… local mgt. has been better than ever, (except our alleged PM) but the farther up the ladder, the dumber they get.