Post Office net loss widens, but controllable loss narrows to just over $1 billion


The U.S. Postal Service reported Friday fiscal third-quarter losses that widened to nearly $3 billion, with revenue rising 4.8% buy expenses growing 8.3% amid higher transportation costs. The net losses for the quarter to June 30 widened to $2.99 billion from $2.21 billion a year ago. Excluding items out of management control, such as a $581 million in the change in workers’ compensation liability resulting from fluctuations in discount rates, and about $1 billion in liability amortization expenses, the “controllable loss” narrowed to $1.02 billion from $1.54 billion. Revenue rose 4.8% to $18.48 billion, as shipping packages revenue fell 7.8% to $7.66 billion, first-class mail revenue grew 1% to $5.53 billion and market mail revenue increased 42.2% to $3.45 billion, which rebounded from steep pandemic-related declines last year. Meanwhile, total operating expenses rose 8.3% to $21.4 billion, as transportation expenses grew 8.3% and compensation and wage expenses increased 0.9%. “We are transitioning from an outdated network and operational posture that was ill equipped to handle the effects of the pandemic on the mix of mail and packages we process – and we expect this volume shift to continue into the foreseeable future,” said Postmaster General Louis DeJoy.


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