• Increase in operating income by 191 million US dollars To 18.8 billion US dollarsand thus continued the growth trend for four consecutive quarters
• Reduction in transport costs of 236 million US dollars reflect the continuous progress made in the Delivering for America to plan
• Growth in the shipping and parcel business continues to benefit from the USPS Ground Advantage

WASHINGTON, 8 August 2024 /PRNewswire/ — The U.S. Postal Service today announced its financial results for the third quarter of fiscal year 2024 (1 April 2024 – June 30, 2024). The net loss for the quarter according to generally accepted accounting principles (GAAP) was 2.5 billion US dollarscompared to a net loss of 1.7 billion US dollars for the same quarter of the previous year.

The quarterly GAAP results were negatively impacted by 1 dollar.4 billion in expenses related to the amortization of unfunded pension obligations and a non-cash employee compensation expense of $67 million related to actuarial revaluations and changes in the discount rate, factors beyond the control of the Postal Service. The controllable loss, excluding these factors, was 1.1 billion US dollars for the quarter compared to 860 million US dollars than in the same quarter last year, as costs related to network modernization and deferred maintenance as well as ongoing inflation increased controllable operating costs.

Total operating revenues amounted to 18.8 billion US dollars for the quarter an increase of 191 million US dollarsor 1.0 percent compared to the same quarter last year.

Revenues from shipping and parcels, first-class mail and marketing mail increased in the third quarter. Revenues from shipping and parcels increased 182 million US dollarsor 2.4 percent, with a volume increase of 46 million units or 2.7 percent compared to the same quarter last year. USPS Ground Advantage, The postal service’s shipping offering, which provides a simple, reliable and more cost-effective way to send packages, continues to enjoy widespread acceptance and growth in the market.

First-Class Mail sales increased 125 million US dollarsor 2.1 percent, with a volume decline of 370 million pieces or 3.4 percent compared to the same quarter last year. Sales of Marketing Mail increased 107 million US dollarsor 3.1 percent with a volume decline of 43 million units or 0.3 percent compared to the same quarter last year.

“We are making solid progress in achieving sustainable revenue growth in our mailing and shipping businesses, which is a validation of the product and pricing strategies and network capabilities that have been leveraged by our Delivering for America Plan,” said Postmaster General Louis DeJoy. “We continue to transform and modernize our processing, transportation and delivery networks so that the Postal Service can operate more efficiently and effectively and at a lower cost. Despite the inflationary headwinds impacting our costs, we remain committed to finding a path to return the Postal Service to long-term financial sustainability.”

Total GAAP operating expenses amounted to 21.4 billion US dollars for the quarter an increase of 901 million US dollarsor 4.4 percent compared to the same quarter last year. The overall increase in operating expenses was primarily due to the impact of inflation on compensation, pension and other operating costs, partially offset by lower transportation costs.

“We have reduced working hours by around one million hours, continuing a sustained three-year trend of working time reduction during the implementation of the Delivering for America Plan. This reduction, coupled with lower transportation costs for the quarter, reflects continued progress against the plan,” said Chief Financial Officer Joseph Corbett.

Third quarter of fiscal year 2024: Operating revenue and volume by service category compared to the previous year
The following table shows revenue and volume by service category for the three months to June 30, 2024 and 2023:

Selected operating results and non-GAAP measures for the third quarter of fiscal 2024
This press release contains ccontrollable loss which is not calculated and presented in accordance with GAAP. This non-GAAP measure is calculated as net loss adjusted for costs outside of management’s control, including workers’ compensation expense caused by actuarial revaluations and discount rate changes, and the amortization of unfunded Civil Service Retirement System (CSRS) and Federal Employee Retirement System (FERS) liabilities. These latter costs are not only largely outside of management’s control, but can also fluctuate significantly due to actuarial assumptions and interest rates.

This non-GAAP measure provides meaningful information that helps users of the Postal Service’s financial reports better understand the financial results and evaluate the ongoing performance of the Postal Service because it excludes items that may not be indicative of or related to the underlying business activities.

Non-GAAP financial measures should be considered in addition to, and not as an alternative to, the Postal Service’s results prepared in accordance with GAAP. This adjusted financial information does not constitute a comprehensive basis for financial reporting.

The following table reconciles GAAP net loss to our non-GAAP financial measure for the three months ended June 30, 2024 and 2023:

Financial results on Form 10-Q can be found at http://about.usps.com/what/financials/.

Forward-looking statements
The forward-looking statements included in this press release represent the Postal Service’s best estimates of known and expected trends relevant to future operations. However, actual results may differ materially from current estimates. Certain forward-looking statements in this press release use words such as “may,” “will,” “could,” “expect,” “believe,” “plan,” “estimate,” “project” or similar terms. These forward-looking statements, which involve a number of risks and uncertainties, reflect current expectations regarding future events and operating performance as of the date hereof. The Postal Service undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

The United States Postal Service is an independent, self-funding federal agency designed to serve every American community by providing affordable, reliable, and secure delivery of letters and packages to nearly 167 million addresses six, and often seven, days a week. Under the oversight of a bipartisan Board of Directors, the Postal Service is implementing a 10-year transformation plan. Delivering for America, The goal is to modernize the postal network, restore long-term financial sustainability, dramatically improve service across all mail and shipping categories, and maintain the company as one of America’s most valued and trusted brands.

The Postal Service generally does not receive tax revenue for operating expenses and relies on the sale of stamps, products and services to finance its operations.

For USPS media resources, including broadcast-quality video and audio files and still images, visit the USPS Newsroom. Follow us on Xformerly known as Twitter; Instagram; Pinterest; subjects And LinkedInSubscribe to the USPS YouTube Channel and like us on FacebookFor more information about the postal service, see www.usps.com And facts.usps.com.

Contact: Martha Johnson
(email protected)
usps.com/news

SOURCE US Postal Service