USPS announces second quarter financial results for fiscal year 2022! Loss of approximately $1.7 billion!

It is learned that according to foreign media reports, the United States Postal Service (USPS) recently announced its financial results for the second quarter of fiscal year 2022 (January 1, 2022 to March 31, 2022). The report shows that USPS's revenue in the quarter was approximately US$19.8 billion, an increase of 4.7% year-on-year.

The USPS reported an adjusted loss of about $1.7 billion for the quarter, roughly the same as the same quarter last year. The net loss was $639 million, up from a net loss of $82 million in the same period last year. The USPS received a total of 886 million packages, up 2.9% year-over-year.

Compared with the same period last year, USPS marketing mail revenue increased by $512 million, a year-on-year increase of 15.9%, and sales volume increased by about 1.2 billion pieces. The company's transportation and package revenue increased by $98 million, despite a decrease in sales volume of 94 million pieces, due to a rebound in demand as the economy recovers and market competition intensifies.

In the second quarter of fiscal year 2022, USPS First-Class Mail revenue increased by $296 million, a year-over-year increase of 5.0%, but the volume decreased by 82 million pieces, or 0.6% year-over-year. The main reasons are higher shipping prices caused by inflation and a decrease in the number of shippers.

It is worth noting that in this quarter, the average delivery time for USPS First-Class Mail was 2.7 days, a 7% increase from 2.9 days in the same period last year. In terms of on-time delivery methods, 87.9% of first-class mail was delivered on time this quarter, higher than 78.1% in the same period last year.

In addition, USPS's total operating expenses increased by approximately $1.5 billion, or 7.7%, year-on-year. Excluding non-cash worker compensation adjustments due to actuarial revaluations and changes in discount rates, total operating expenses increased by $908 million, or 4.4%. Shipping and packaging revenue increased by $98 million, or 1.3%. Salary and benefit expenses increased by $354 million, or 2.9%. Workers' compensation expenses increased by $477 million year-on-year. Other operating expenses increased by $369 million, or 14.4%, year-on-year.

Louis DeJoy, chief financial officer of USPS, said: "Although our operating income this quarter has increased compared with the same quarter last year, we are still facing losses this quarter due to the impact of inflation and rising prices. In the future, the company will actively manage its business, optimize its network, maximize productivity, and align its pricing strategy with market demand. USPS is still expected to achieve break-even performance in the decade from fiscal year 2021 to fiscal year 30, reversing a loss of $160 billion."

Editor ✎ Nicole/

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