USPS Reports 3Q Results: Rev Flat, Costs Up, All Volumes Down

WASHINGTON – The U.S. Postal Service reported total revenue of $17.1 billion for the third quarter of fiscal 2019 (April 1, 2019 – June 30, 2019), a decrease of $16 million, which is essentially flat compared to the same quarter last year.

First-Class Mail revenue declined by $98 million, or 1.6 percent, on a volume decline of 361 million pieces, or 2.7 percent, compared to the same quarter last year.

Marketing Mail revenue declined by $121 million, or 3.0 percent, on a volume decline of 878 million pieces, or 4.7 percent, compared to the same quarter last year.

Periodicals revenue declined by $38 million, or 11.2 percent, on a volume decline of 173 million pieces, compared to the same quarter last year.

Meanwhile, Shipping and Packages revenue increased by $250 million, or 4.8 percent, despite a volume decline of 47 million pieces, or 3.2 percent, compared to the same quarter last year.

Total operating expenses were $19.3 billion for the quarter, an increase of $797 million, or 4.3 percent, compared to the same quarter last year. Excluding costs resulting from actuarial revaluation, discount rate changes, and amortization of unfunded liabilities, which are outside of management’s control, expenses increased by $218 million, or 1.2 percent, compared to the same quarter last year.

The net loss for the quarter totaled nearly $2.3 billion, an increase of $767 million, compared to a net loss of nearly $1.5 billion for the same quarter last year. Controllable loss for the quarter was nearly $1.1 billion, compared to a controllable loss of $889 million for the same quarter last year.

The following table presents selected results of operations and reconciles GAAP net loss to controllable loss and illustrates the loss from ongoing business activities without the impact of non-controllable items for the three months ended June 30, 2019, and 2018: