USPS Q3 2017 Financials – Net loss of $2.1 billion for Q3

08/11/2017

The USPS has released their Q3 FY 2017 financial report.

Revenue is down by about $1 billion for the quarter. This number is inflated to some degree due to the effect of a $1.1 billion non-cash change in accounting estimate recognized during Q3 of 2016. Removing that non-cash change, revenue is basically flat compared to same period last year.

The USPS reported expenses for Q3 were down about $463 million, but in reviewing the numbers, compensation and benefits expenses were up significantly.

Revenue was down for First Class, Marketing Mail and Periodicals reported continued declines in volume:

  • First-Class Mail decreased by $422 million
  • Marketing Mail decreased $150 million
  • Periodicals decreased $23 million

Shipping and Packages revenue increasing $473 million or 11.3%.

Year-to-date, the overall volume has declined by more than 3 billion pieces and reported a net loss of $2.1 billion for Q3

In the USPS’ press release, they again asked for postal reform and relaxation of the price cap by the PRC to relieve ongoing financial stress.