The US Postal Service lost $547 million from operations in July, bringing the actual year to date cash loss to $1.6 billion. Those numbers do not include the non-cash “losses” due to bookkeeping entries for PAEA charges. (Adding the PAEA charges would bring the total loss to $13.5 billion, but as we’ve noted before, the extra $11.8 billion doesn’t reflect actual cash that the USPS has paid, or will be paying.)
Some key indicators from the report:
- Mail volume continues its steady slide- first class is down 6.3% from last July, while standard is down 3.4%.
- Shipping revenue is up significantly, but is still a relatively small contributor (17%) to total revenue.
- Salaries and benefits for employees dropped 2.8% from July 2011.
- The report shows that total “expenses” year to date climbed by 9.9% from last year, but that increase is almost entirely due to the USPS double counting the PAEA charges. (The FY 2011 PAEA charges that the USPS reported last year also appear on this years reports, even though no actual payments have been, or will be made).
- Actual operating expenses year to date are down by 1%, more than offsetting the 0.7% decline in actual revenue.