USPS Posts Annual Loss, Though Revenue Rises
13 Novembre 2015 - 6:30PM
Dow Jones News
The U.S. Postal Service, which has suffered chronic losses year
after year, saw costs again outpace income in 2015 as higher
benefits expenses and more labor-intensive shipping and package
business ate away at adjusted profit.
The agency posted so-called controllable income of $1.2 billion
for the year, down from $1.4 billion in 2014. Controllable income
excludes a government-mandated payment for retirement benefits,
among other costs.
Meanwhile, controllable operating expenses climbed by $1.3
billion to reach $67.6 billion, reflecting what the agency called
"substantial financial pressure that demonstrates the need for
legislative reform."
According to Postmaster General Megan J. Brennan, any business
growth and operational efficiencies won't be enough without "the
enactment of legislation that makes our retiree health-benefit
system affordable and that provides increased pricing and product
flexibility."
For the 2015 fiscal year, the Postal Service recorded a net loss
of $5.1 billion, compared with a loss of $5.5 billion in 2014. The
agency reported revenue this year of $68.9 billion, up from $67.8
billion. Operating expenses inched up 0.9% to $73.8 billion.
For the year, the Postal Service had total mail volume of 154.2
billion pieces, down from 155.5 billion last year.
While shipping and package volume climbed 14%, bringing with it
added labor costs, first-class mail and standard mail volume fell
by 2.2% and 0.3% respectively.
In seeking to keep pace with the digital era, the postal service
has been relying increasingly on its package business as e-commerce
takes off.
Looking ahead, the postal service expects added pressure on
results with the slated rollback of an exigent surcharge that has
provided an estimated $3.5 billion in revenue since its
inception.
Last month, the agency said it would seek to increase its
commercial-package shipping prices by an average of 9.5% and by
double digits for its bread-and-butter business of shipping
packages weighing less than a pound.
The highest price increases have been requested to start in
mid-January for packages that weigh under a pound, including for
Parcel Select products, which are used by United Parcel Service,
FedEx and Amazon.com Inc. Those companies drop packages off at the
local post office, then trucks deliver the packages to residential
doorsteps. Average revenue for USPS on these is about $1.74.
Write to Ezequiel Minaya at ezequiel.minaya@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
November 13, 2015 12:15 ET (17:15 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
United Parcel Service (NYSE:UPS)
Graphique Historique de l'Action
De Juin 2024 à Juil 2024
United Parcel Service (NYSE:UPS)
Graphique Historique de l'Action
De Juil 2023 à Juil 2024