USPS reports first quarter results, with a loss of about $1.3 billion

This week, the United States Postal Service ( USPS) released its financial results for the first quarter of fiscal year 2022 ( October 1 to December 31, 2021) .

The USPS reported an adjusted loss of approximately $1.3 billion for the quarter , compared with an adjusted loss of $288 million in the same period last year . Based on US GAAP, the USPS reported a net loss of approximately $1.5 billion for the quarter . The USPS said the increase in net and adjusted loss amounts for the quarter was due to the impact of US inflation on operating expenses, including price increases related to energy and fuel costs.

The financial report shows that USPS 's operating income for the quarter was approximately US$21.3 billion, a decrease of approximately 0.9% compared with the same period last year, while the number of all packages received in the quarter decreased by approximately 4.1% compared with the same period last year. Due to price increases implemented during the 2021 holiday season, USPS's revenue declined at a slower rate than the number of packages.

Compared with the same period last year, the number of First-Class Mail packages decreased by 3.8%, but revenue increased by 2.5% to $160 million. The growth in revenue for this service was also driven by price increases, while USPS attributed the decline in sales to the fact that American consumers were more inclined to use electronic communications and other transaction solutions instead of mail due to the epidemic.

Meanwhile, USPS marketing mail revenue increased by $304 million, up 7.3% from the same period last year; however, sales volume fell by about 710 million pieces. USPS believes that marketing mail has generally proven to be a resilient marketing channel, and its value to American businesses remains strong as the economy shows signs of recovery.

The number of shipments and packages fell 7.9% compared to the same period last year , and revenue decreased by $738 million. USPS said that the decline in shipping and package volume is because the current e-commerce development trend has stabilized, and as the economy recovers and market competition intensifies, the growth rate of e-commerce will continue to slow down. However, the number of shipments and packages is still higher than the pre-epidemic level.

" The Postal Service is facing ongoing financial challenges as mail volumes continue to decline, operating costs continue to rise , and inflationary pressures continue to weigh on the Postal Service," said USPS Chief Financial Officer Joseph Corbett . "We will invest in infrastructure and personnel , and optimize our operations network to restore the Postal Service 's financial sustainability. "

USPS

Financial Report