Shipping and package revenue increased by 13.5 percent in the quarter, which included the holiday period. * As of September 30, 2019 **Mail bearing postage stamps — bill payments, personal correspondence, cards and letters, etc. Despite a solid 1.5 percent rise in revenue compared to last year, USPS reported an operating loss of $1.951 billion. And in recent years, the USPS has not made the required payment, citing a lack of available cash. USPS chief financial officer Richard Strasser attributes the decline in profit to rising costs that the Postal Service cannot compensate for via quick price changes. Revenue came to $69.6 billion, down from $71.5 billion last year. Unlike his legislation in the 113th Congress, a bill authored by Sen. Tom Carper, D-Del., also dropped the five-day language. That brings the year to date profit (excluding PAEA accounting adjustments) to … And they are certainly not because of its contracts to handle delivery of Amazon packages, no matter what President Donald Trump claims about losses on those deliveries. Business Supplies. The USPS booked positive cash flow of nearly $2 billion in the nine months ending June 30, up from $1.3 billion in the same period a year ago. If the USPS would require full Medicare participation, it would eliminate about 90% of the USPS unfunded retiree health care costs — about $33.5 billion — over 10 years, she told lawmakers. The White House again pitched increasing revenue by providing postal management with more flexibility in creating new business opportunities, as well as boosting cooperation with state and local governments to offer services at post offices. USPS posted a net income of $307 million in the first quarter of fiscal 2016, the first such gain since the fourth quarter of fiscal 2011. But lawmakers skipped or cut the payments for four years, leaving the USPS with a $1.6 billion IOU. The U.S. Excluding the pre-funding expense the USPS has turned a $660 million profit delivering mail in fiscal year 2013. communities now considered high-risk for coronavirus, Didn’t receive a stimulus check? But in reality, the agency is generating billions in cash. Nonetheless, “2004 and 2005 are the first two years that the USPS showed an actual profit since the Postal Service was reorganized in 1971,” says Strasser. But, wait, there’s more… What if you couldn’t increase your pricing based on changing market conditions (such as rising fuel costs or competitive pressures)? That puts USPS operations $3.2 billion in the black over the past three years. Read our, Yes, I want to receive occasional updates from partners. A lot of govt agencies run a "profit", that profit is reinvested right back into the govt/agency. USPS noted it would have lost $700 million if not for a temporary price increase set to expire in April. “There’s no other entity on Earth that does anything like that. That was the first rollback since 1919 and it makes little financial sense because USPS already has the industrial world’s lowest rates. The past fiscal year yielded a $1.2 billion operating profit for the U.S. “This is the Postal Service. Instead they use the USPS health care policies as their primary insurance, rather an as supplemental insurance. The 18-wheelers were developed by startup company, TuSimple. In May 2019, the Postal Service announced that it will be releasing a pilot of self-driving trucks to haul mail across the U.S. The first quarter is typically the best of the year for the Postal Service. All Rights Reserved. As of last year, USPS managed 147.2 million residential delivery points and 12.8 million business ones. 1 - 11 of 11 Results. The United States Postal Service has lost $51.7 billion between 2007 and 2014 and has not earned a profit since 2006, according to a report from the Tax Foundation. The past fiscal year yielded a $1.2 billion operating profit for the U.S. For the period from January 1 to March 31, the USPS had a net operating profit (aka "controllable income" of $576 million. This statistic depicts the operating revenue of the United States Postal Service (USPS) between the fiscal years 2000 and 2020, broken down by segment. It has 31,322 USPS-managed retail post offices. But Postal Service revenue has mostly fallen or stagnated since 2008, when it hit a record $74.9 billion. Under this law, the USPS was required to pre-fund 75 years worth of retiree health care benefits in the span of roughly 10 years. While the Postal Service has long lobbied for the modified delivery schedule, it has dropped that proposal from its “must-have” list in legislation. It’s interesting that Congress requires 100% funding for 75 years in advance for the USPS when,according to The Motley Fool,the U.S. Government is only 42% funded. For instance, you would need to have two different permits to mail presorted First-Class Mail and USPS Marketing Mail commercial mailings from the same office. Postal Service (USPS) generated a huge $1.6 billion in profit from Amazon deliveries in the 2019 fiscal year, debunking claims from President Trump that the … Urgent need to advance legislative and regulatory reforms, along with continued aggressive management and innovation WASHINGTON - The U.S. If the USPS was a private sector company, that would translate to a pretty healthy profit. USPS was profitable every year between 2003 and 2006, averaging a net income over two billion dollars.This is in stark contrast to its losses in 2001-2002 that averaged over a billion dollars. The decline in letter volume has been more than made up by increased package shipments, as consumers make more purchases online. © 2021 by Government Media Executive Group LLC. The 1993 law would have required taxpayers to provide the USPS a total of $1.2 billion over 42 years. NEXT STORY: Postal Service (USPS) ran a deficit of $3.9 billion. A report by the USPS inspector general hinted that the USPS might declare that sum as a loss. "There is … ON ABOUT.USPS.COM. Postal Service reported total revenue of $19.7 billion for the first quarter of fiscal 2019 (October 1, 2018 - December 31, 2018), an increase of $553 million, or 2.9 percent, compared to the same quarter last year. Help us tailor content specifically for you: Agencies Have Distributed 200K Vaccine Doses, Guidance on Carrying Over More Annual Leave, Agencies Generally Complying With Trump Diversity Training Changes, Podcast: Native Communities, the Federal Government and the Pandemic, USPS Records First Profit in Five Years as Obama Calls for Shedding 12K Postal Jobs, Help Us Find the Government’s Boldest Innovators, Route Fifty eBook: IT Priorities for State Governments. Last year, the U.S. “UPS and FedEx depend on Postal Service to go where they don’t want to go,” he said. The rule took effect in 2007, just before the start of the Great Recession, when the Postal Service was still reporting profits. Profits grew $1.1 billion over the same period last year, when the Postal Service lost $754 million. The U.S. There’s no substitute for the Postal Service for much of the country.”, (Copyright (c) 2020 CNN. I agree to the use of my personal data by Government Executive Media Group and its partners to serve me targeted ads. It is true that there has been a continual decline in traditional first class letters over recent years, as bills and payments shift from traditional mail to online. Chart 1. In the fiscal year ending September 30, 2018, around 22.4 billion pieces were sent and received in the transaction market. OPERATING PROFIT. Those had increased over the previous year by … Beyond the question of bookkeeping and accounting rules being responsible for most of the losses, there is the question of whether or not USPS should be making money. USPS Reports $12 million operating profit for Fiscal Year 2017 Second Quarter. 2017 Budget Winners and Losers. All Rights Reserved. Saved. UPS annual gross profit for 2018 was $53.293B, a 5.33% increase from 2017. Retirees are still covered because the USPS made payments in the past. Enter Search term for Search USPS.com. Top Searches. The Postal Service is the only federal agency that pre-finances its future retiree health obligations, though the bill would restructure the benefit plan by stretching out the payments over 40 years. Issues U.S. In brief: The U.S. All rights reserved. As of September 30, 2019, the balance of the retiree health benefits fund was $92.2 billion, with interest on the holdings covering most of the actual premium costs it made. “Despite these achievements and the best efforts of our employees, our financial condition will worsen without legislative reform,” Brennan said. RISING USPS REVENUE OVER TIME MAIL REVENUE PERFORMANCE DRIVES PROFITS. Under the Postal Accountability and Enhancement Act of 2006, the USPS is required to pay $5.4 billion to $5.8 billion annually, through 2016, to pay for future retiree health benefits. But the economic downturn hit hard and made the payments unaffordable. Postal Service reported operating revenue of $71.1 billion for fiscal year 2019 (October 1, 2018 - September 30, 2019), an … By continuing to use this site, you agree to our use of cookies. In its last complete fiscal year, the USPS had 496,934 career employees. The public may view the reports by going to, How to register your school/organization for closings and delays, 190 Mass. Nearly all private sector and government employers that provide retiree health benefits require full participation in Medicare, said Megan Brennan, a former postmaster general, before a House committee last year. It’s true that no other unit of government or private company that provides retiree health care coverage has to make such pre-funding payments. When I talk about it, people say it’s utterly absurd,” said Rep. Peter DeFazio, the author of legislation that would remove that requirement. Postal Service turned a profit in a financial quarter for the first time in five years, though President Obama still proposed the agency slash 12,000 employees in his fiscal 2017 budget. USPS.com Home › Buy Stamps & Shop › Print a Label with Postage › Customer Service › Delivering Solutions to the Last Mile › OTHER USPS SITES. May 13th USPS reports $2.1 billion loss for 2nd quarter FY 2019 . Today, the U.S. Virtually all of the agency’s financial problems stem from a unique, arcane accounting system that no other business or government body follows and that doesn’t accurately reflect real costs. The USPS booked positive cash flow of nearly $2 billion in the nine months ending June 30, up from $1.3 billion in the same period a year ago. Postmaster General Megan Brennan on Tuesday echoed the call for congressional action, saying the agency’s positive numbers should not mitigate the need for reform. Cards & Envelopes. Search Store Stamps. Read more. But lawmakers skipped or cut the payments for four years, leaving the USPS with a $1.6 billion IOU. Back in the early days when Amazon was not turning a profit, what they were doing was building an incredible network, that covered the entire journey of a product. All this red ink has flowed despite USPS’s aggressive move [1] into the parcel delivery business. A report by the USPS inspector general hinted that the USPS might declare that sum as a loss. The fact that the USPS can come close to profitability while charging only 55 cents to mail a letter across the country is nothing short of astounding. WHDH and WLVI broadcast educational and informational programming for children, and file quarterly reports with the FCC detailing the station's outreach to children. There is no special form to fill out each year when renewing the fee Paying the annual mailing fee gives you permission to mail a certain class of mail from a certain postal facility for 365 days. 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