U.S. Postal Service Loss Widens as Higher Costs Offset Revenue Growth
November 15 2016 - 2:00PM
Dow Jones News
The U.S. Postal Service reported a wider loss for the fiscal
year ended Sept. 30 as growth in shipping and package volume
boosted revenue but also led to higher spending.
USPS has been competing for share in the growing market for
package delivery spurred by an increase in e-commerce against
shipping giants UPS and Federal Express, which also have been hit
by higher costs.
USPS said its total revenue improved by 3.8% to $71.43 billion.
However, excluding a boost from a change in USPS's accounting
estimates for consumer usage of "forever" stamps, the growth was
2.3%.
In all, volume eased by 0.1% as growth in categories led by
shipping and packages was offset by continued declines in
first-class mail.
Operating expenses increased 4.2% as the growth in shipping and
packages volume contributed to higher labor and transportation
costs.
Postmaster General and Chief Executive Megan J. Brennan said the
USPS spent $1.4 billion in the latest fiscal year for building
improvements, vehicles, equipment and other capital projects, an
increase of $206 million from the year-earlier period.
Excluding special items, such as prepaying retiree health
benefits and certain changes in workers' compensation expenses,
USPS reported controllable income of $610 million, compared with a
year-earlier controllable income of $1.19 billion.
Over all, USPS reported a loss of $5.6 billion, compared with a
year-earlier loss of $5.06 billion.
Write to Tess Stynes at tess.stynes@wsj.com
(END) Dow Jones Newswires
November 15, 2016 13:45 ET (18:45 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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