usps profit by year

USPS chief financial officer Richard Strasser attributes the decline in profit to rising costs that the Postal Service cannot compensate for via quick price changes. The U.S. The agency’s total revenue in fiscal 2019 was $71.2 billion, enough to place it 43rd on the Fortune 500 (higher than Intel) if it were a private company. As of last year, USPS managed 147.2 million residential delivery points and 12.8 million business ones. Stamps. Government Executive uses cookies for analytics and personalization. For instance, you would need to have two different permits to mail presorted First-Class Mail and USPS Marketing Mail commercial mailings from the same office. In the fiscal year ending September 30, 2018, around 22.4 billion pieces were sent and received in the transaction market. The past fiscal year yielded a $1.2 billion operating profit for the U.S. Help us tailor content specifically for you: Agencies Have Distributed 200K Vaccine Doses, Guidance on Carrying Over More Annual Leave, Agencies Generally Complying With Trump Diversity Training Changes, Podcast: Native Communities, the Federal Government and the Pandemic, USPS Records First Profit in Five Years as Obama Calls for Shedding 12K Postal Jobs, Help Us Find the Government’s Boldest Innovators, Route Fifty eBook: IT Priorities for State Governments. UPS gross profit for the twelve months ending September 30, 2020 was $61.221B, a 10.62% increase year-over-year. Collectors. The biggest drag on its finances is a unique rule that requires the USPS to prepay for workers’ retirement benefits for decades into the future. Unlike his legislation in the 113th Congress, a bill authored by Sen. Tom Carper, D-Del., also dropped the five-day language. Retirees are still covered because the USPS made payments in the past. Enter Search term for Search USPS.com. Excluding the pre-funding expense the USPS has turned a $660 million profit delivering mail in fiscal year 2013. The rule took effect in 2007, just before the start of the Great Recession, when the Postal Service was still reporting profits. Urgent need to advance legislative and regulatory reforms, along with continued aggressive management and innovation WASHINGTON - The U.S. The mailing agency -- which has shed 250,000 jobs over the last 20 years -- also renewed its call for fundamental legislative changes to firm up its financial footing. “This is the Postal Service. Since October 2018, it has booked about $4 billion in costs above what it is actually having to pay to cover the cost of on-the-job injuries or deaths suffered by postal workers. The White House again pitched increasing revenue by providing postal management with more flexibility in creating new business opportunities, as well as boosting cooperation with state and local governments to offer services at post offices. When I talk about it, people say it’s utterly absurd,” said Rep. Peter DeFazio, the author of legislation that would remove that requirement. ON ABOUT.USPS.COM. It’s not the postal business,” said DeFazio. The 1993 law would have required taxpayers to provide the USPS a total of $1.2 billion over 42 years. Postal law, and investigations of those contracts, have confirmed that the USPS makes money on the contracts it has with Amazon and other major shippers. As part of his budget, Obama -- as he did last year -- proposed Congress make the recession-induced surcharge permanent. See also: Find Postal Service Jobs Without Being Scammed The public may view the reports by going to, How to register your school/organization for closings and delays, 190 Mass. The lower revenues were driven largely by accelerated declines in First-Class and Marketing Mail volumes. It was in these early years where the development of fulfilment centres and eventually their own delivery and logistics network which has allowed them today to have full control over their business. That puts USPS operations $3.2 billion in the black over the past three years. Postal Store. The USPS booked positive cash flow of nearly $2 billion in the nine months ending June 30, up from $1.3 billion in the same period a year ago. The positive financial news did not prevent Obama from calling for the Postal Service to continue shedding jobs in his fiscal 2017 budget, along with a comprehensive overhaul of the agency’s operations. I agree to the use of my personal data by Government Executive Media Group and its partners to serve me targeted ads. But the economic downturn hit hard and made the payments unaffordable. Read our, Yes, I want to receive occasional updates from partners. The USPS has massive amount of debt it needs to repay, for which profit would assist. But that 10 year period ended in 2016, so it can’t be blamed for current USPS woes. By continuing to use this site, you agree to our use of cookies. Read more. The cost of retiree health care coverage is further inflated by the fact that only 74% of the nearly 500,000 retirees and their family members covered by those policies are fully enrolled in Medicare. AP Ali Meyer-September 22, 2015 1:03 PM The 18-wheelers were developed by startup company, TuSimple. But in reality, the agency is generating billions in cash. As of September 30, 2019, the balance of the retiree health benefits fund was $92.2 billion, with interest on the holdings covering most of the actual premium costs it made. Postal Service reported operating revenue of $71.1 billion for fiscal year 2019 (October 1, 2018 - September 30, 2019), an … Postal Service (USPS) released its financial report for the 2017 fiscal year in which its leadership detailed a greatly concerning loss of $2.7 billion. USPS posted a net income of $307 million in the first quarter of fiscal 2016, the first such gain since the fourth quarter of fiscal 2011. The projected 12,000 USPS job loss in 2017 falls in line with projections released by the Postal Service itself in 2012 as part of its five-year plan. Profitability factors in the costs of doing business, and in the case of the Postal Service, those costs are significant. Operating revenue ticked up 3.3 percent to $19.3 billion between Oct. 1 and Dec. 31, 2015, driven largely by a record volume of package delivery. Has no dividend. A report by the USPS inspector general hinted that the USPS might declare that sum as a loss. The past fiscal year yielded a $1.2 billion operating profit for the U.S. PO BOXES; PASSPORTS; FREE BOXES . The legislation, which the USPS supports, has passed the House with bipartisan support, and a Senate version also has bipartisan sponsors, but no vote has been scheduled yet. Issues U.S. The financial problems have nothing to do with the expected surge in mail-in ballots for the election in November. Email adoption numbers simply don’t correlate with USPS’s downturn in business. Saved. The USPS announced in its fourth quarter financial statement that in FY 2019, it ran an $8.8 billion deficit, a 125 percent increase compared to FY 2018. The Postal Service’s 2018 Fiscal Year financial report shows the Postal Service’s underlying business strength while also indicating the need to address external matters beyond USPS control. USPS noted it would have lost $700 million if not for a temporary price increase set to expire in April. Nonetheless, “2004 and 2005 are the first two years that the USPS showed an actual profit since the Postal Service was reorganized in 1971,” says Strasser. Nearly all private sector and government employers that provide retiree health benefits require full participation in Medicare, said Megan Brennan, a former postmaster general, before a House committee last year. Last year, the U.S. Despite increased revenue of $555 million in the first six months of Fiscal Year 2019 compared to the same period last year, USPS reported an operating loss of $909 […] Posted in postal news Tagged NALC, postal news, usps financials. The 1993 law would have required taxpayers to provide the USPS a total of $1.2 billion over 42 years. USPS records its first quarterly net profit in five years, but warns losses are not over. Most people don’t realize that the service typically runs without any taxpayer subsidies, despite being a part of the government that goes back to before the revolutionary war. H&R Block issues statement after customers report IRS website displaying unknown account number, DA identifies victims of apparent murder-suicide in Charlton, Nearly 9 pounds of bush meat seized at Newark Liberty Airport in NJ. communities now considered high-risk for coronavirus, Didn’t receive a stimulus check? The US Postal Service reported its second quarter financial results today. UPS annual gross profit for 2019 was $56.377B, a 5.79% increase from 2018. In May 2019, the Postal Service announced that it will be releasing a pilot of self-driving trucks to haul mail across the U.S. May 13th USPS reports $2.1 billion loss for 2nd quarter FY 2019 . All Rights Reserved. RISING USPS REVENUE OVER TIME MAIL REVENUE PERFORMANCE DRIVES PROFITS. For the period from January 1 to March 31, the USPS had a net operating profit (aka "controllable income" of $576 million. Obama repeated many of the proposals included in his previous budgets, such as suggesting the Postal Service cut Saturday mail delivery after volume declines to a level the White House expects USPS to hit in late 2018. The U.S. The fact that the USPS can come close to profitability while charging only 55 cents to mail a letter across the country is nothing short of astounding. Postal Service (USPS) ran a deficit of $3.9 billion. These five charts depict the immensity of USPS’s financial challenges. The money won't magically disappear. USPS now has three straight years of operating in the black, with a total operating profit of $3.2 billion since 2013. In brief: The U.S. It’s true that no other unit of government or private company that provides retiree health care coverage has to make such pre-funding payments. That positive cash flow came despite a large reported net losses — $7.5 billion the most recent nine months, up from a net loss of $5.9 billion in the year earlier period. But lawmakers skipped or cut the payments for four years, leaving the USPS with a $1.6 billion IOU. Mail Volume […] In its last complete fiscal year, the USPS had 496,934 career employees. Revenue came to $69.6 billion, down from $71.5 billion last year. “UPS and FedEx depend on Postal Service to go where they don’t want to go,” he said. NEXT STORY: UPS annual gross profit for 2018 was $53.293B, a 5.33% increase from 2017. But, wait, there’s more… What if you couldn’t increase your pricing based on changing market conditions (such as rising fuel costs or competitive pressures)? Today, the U.S. There is no special form to fill out each year when renewing the fee Paying the annual mailing fee gives you permission to mail a certain class of mail from a certain postal facility for 365 days. 1 - 11 of 11 Results. It has 31,322 USPS-managed retail post offices. Search Store Stamps. It had positive average annual cash flow of $3 billion over the previous three fiscal years. This material may not be published, broadcast, rewritten, or redistributed. Shipping and package revenue increased by 13.5 percent in the quarter, which included the holiday period. Even though the USPS hasn’t been making those payments, it continues to book the theoretical cost as an expense — $16.8 billion since the start of the 2017 fiscal year. (“Utterly absurd,” as one lawmaker calls it.). “Despite these achievements and the best efforts of our employees, our financial condition will worsen without legislative reform,” Brennan said. But lawmakers skipped or cut the payments for four years, leaving the USPS with a $1.6 billion IOU. It has another 136,174 non-career employees. Postmaster General Megan Brennan on Tuesday echoed the call for congressional action, saying the agency’s positive numbers should not mitigate the need for reform. If the USPS would require full Medicare participation, it would eliminate about 90% of the USPS unfunded retiree health care costs — about $33.5 billion — over 10 years, she told lawmakers. Seven months into the current fiscal year, the US Postal Service's revenue exceeds its expenses by $1.353 billion. The United States Postal Service has lost $51.7 billion between 2007 and 2014 and has not earned a profit since 2006, according to a report from the Tax Foundation. In the topsy turvy world of Washington, however, it means the USPS is still "bleeding cash"- … And they are certainly not because of its contracts to handle delivery of Amazon packages, no matter what President Donald Trump claims about losses on those deliveries. Postal Service (USPS) generated a huge $1.6 billion in profit from Amazon deliveries in the 2019 fiscal year, debunking claims from President Trump that the … By 2002, the majority of Americans were already using email, yet USPS made a pretty penny in the years that followed. Nobody asks why the Department of Agriculture didn’t turn a profit last year. That was the first rollback since 1919 and it makes little financial sense because USPS already has the industrial world’s lowest rates. The Postal Service is the only federal agency that pre-finances its future retiree health obligations, though the bill would restructure the benefit plan by stretching out the payments over 40 years. © 2021 by Government Media Executive Group LLC. Postal Service reported total revenue of $19.7 billion for the first quarter of fiscal 2019 (October 1, 2018 - December 31, 2018), an increase of $553 million, or 2.9 percent, compared to the same quarter last year. Supplies. All figures are for one fiscal year. Posted on May 10, 2017 by postal. Today’s Postal Service financial report shows a $610 million operating profit for Fiscal Year 2016, demonstrating the strength of the postal turnaround. WHDH and WLVI broadcast educational and informational programming for children, and file quarterly reports with the FCC detailing the station's outreach to children. WASHINGTON — The U.S. ON ABOUT.USPS.COM. 2017 Budget Winners and Losers. All this red ink has flowed despite USPS’s aggressive move [1] into the parcel delivery business. USPS.com Home › Buy Stamps & Shop › Print a Label with Postage › Customer Service › Delivering Solutions to the Last Mile › OTHER USPS SITES. A report by the USPS inspector general hinted that the USPS might declare that sum as a loss. But Postal Service revenue has mostly fallen or stagnated since 2008, when it hit a record $74.9 billion. Under this law, the USPS was required to pre-fund 75 years worth of retiree health care benefits in the span of roughly 10 years. The USPS booked positive cash flow of nearly $2 billion in the nine months ending June 30, up from $1.3 billion in the same period a year ago. Postal Service Has Not Earned a Profit in Almost a Decade The government-owned enterprise has lost $51.7 billion since 2007. Yes, Government Executive can email me on behalf of carefully selected companies and organizations. This statistic depicts the operating revenue of the United States Postal Service (USPS) between the fiscal years 2000 and 2020, broken down by segment. The president’s plan would allow USPS to phase out to-the-door delivery in favor of centralized or curbside delivery, while codifying the current policy of not closing rural post offices. Postal Service turned a profit in a financial quarter for the first time in five years, though President Obama still proposed the agency slash 12,000 employees in his fiscal 2017 budget. Without this decrease, the $1.951 billion operating loss in FY2018 would be a small operating profit of $49 million – without a dime of taxpayer money. Profits grew $1.1 billion over the same period last year, when the Postal Service lost $754 million. All rights reserved. This tool will tell you when it’s coming, Don’t panic! Unfortunately, losses are the rule rather than the exception for the agency. There’s no substitute for the Postal Service for much of the country.”, (Copyright (c) 2020 CNN. USPS.com Home › Buy Stamps & Shop › Print a Label with Postage › Customer Service › Delivering Solutions to the Last Mile › OTHER USPS SITES. USPS does not directly receive tax dollars from the federal government. more than 30,000 civilian federal workers. The Postal Service’s operating profits have been driven by improved letter/package revenue. SOURCE FOR OPERATING PROFITS See … ), All content © Copyright 2000 - 2021 WHDH-TV. Instead they use the USPS health care policies as their primary insurance, rather an as supplemental insurance. It is true that there has been a continual decline in traditional first class letters over recent years, as bills and payments shift from traditional mail to online. Cards & Envelopes. Business Supplies. Operating revenue impacted by the expiration of the exigent surcharge ; Net loss of $562 million ; Urgent need to advance postal reform legislation; WASHINGTON — Although the U.S. Meanwhile, the plan to eliminate Saturday service is dead. Showing again that Senator Carper, Senator Coburn and Congressman Issa are manufacturing a postal financial crisis as an excuse to dismantle it. USPS was profitable every year between 2003 and 2006, averaging a net income over two billion dollars.This is in stark contrast to its losses in 2001-2002 that averaged over a billion dollars. USPS Reports $12 million operating profit for Fiscal Year 2017 Second Quarter. OPERATING PROFIT. WASHINGTON — The U.S. Newsroom › USPS Service Alerts › Forms & Publications › Careers › Site Index › ON USPS.COM. Beyond the question of bookkeeping and accounting rules being responsible for most of the losses, there is the question of whether or not USPS should be making money. Despite a solid 1.5 percent rise in revenue compared to last year, USPS reported an operating loss of $1.951 billion. Gifts. While the Postal Service has long lobbied for the modified delivery schedule, it has dropped that proposal from its “must-have” list in legislation. Cash flow and profits are not the same thing. It’s interesting that Congress requires 100% funding for 75 years in advance for the USPS when,according to The Motley Fool,the U.S. Government is only 42% funded. Chart 1. Virtually all of the agency’s financial problems stem from a unique, arcane accounting system that no other business or government body follows and that doesn’t accurately reflect real costs. ***Includes Priority Mail, Priority Mail Express, First-Class Packages, Package Services, Parcel Return Service and Parcel Select. Top Searches. USPS posted a net income of $307 million in the first quarter of fiscal 2016, the first such gain since the fourth quarter of fiscal 2011. "There is … The decline in letter volume has been more than made up by increased package shipments, as consumers make more purchases online. Claim: The United States Postal Service (USPS) is losing money due to a 2006 law mandating it fund its pensions 75 years in advance. Mail carrier Marissa Ogletree delivers mail in the historic Pullman neighborhood in Chicago November 20, 2014. (CNN) — Lawmakers on Saturday are expected to vote on a bailout for the US Postal Service, which, on paper, has been posting huge losses for years. “If you wanted to run it as a business, you’d eliminate the least profitable routes, you’d cut out all of rural routes. The period between Thanksgiving and Christmas is the busiest time of the year for the USPS with the agency delivering an estimated 900 million packages during the period of 2018. If the USPS was a private sector company, that would translate to a pretty healthy profit. “There’s no other entity on Earth that does anything like that. Newsroom › USPS Service Alerts › Forms & Publications › Careers › Site Index › ON USPS.COM. From fiscal year (FY) 2007 through FY 2018, the USPS’s net losses totaled $69 billion. Back in the early days when Amazon was not turning a profit, what they were doing was building an incredible network, that covered the entire journey of a product. That brings the year to date profit (excluding PAEA accounting adjustments) to … In 2006, Congress passed a law to require the the agency to pre-fund 75 years worth of retiree health care benefits in the span of about 10 years. Sort by: Issue Date. Excluding the Postal Service, Obama’s budget would add more than 30,000 civilian federal workers in fiscal 2017. But even with the drop in revenue and volumes from traditional letters, the USPS makes money on that business. That accounts for most of the agency’s reported losses. Those had increased over the previous year by … In addition to retiree health care costs, workers’ compensation is another hypothetical cost weighing on USPS finances. Postal Service turned a profit in a financial quarter for the first time in five years, though President Obama still proposed the agency slash 12,000 employees in his fiscal 2017 budget. The Postal Service reported a 2016 Fiscal Year operating profit of $610 million. This marks 13 years of consecutive losses for the USPS, totaling $77.8 billion. the USPS used to be "profitable" for many years. Under the Postal Accountability and Enhancement Act of 2006, the USPS is required to pay $5.4 billion to $5.8 billion annually, through 2016, to pay for future retiree health benefits. “It doesn’t need to make money.” He said if it wants to maximize profits it would hurt many Americans, particularly in rural areas that are expensive to serve. A lot of govt agencies run a "profit", that profit is reinvested right back into the govt/agency. All Rights Reserved. The first quarter is typically the best of the year for the Postal Service. It does receive reimbursement for lawmakers mailings (franked mail) and to subsidize non-profit’s special mailing discounts (which is underfunded). The USPS has no stockholders. The new USPS Financial Report issued Friday further validates the claim that the Postal Service is neither broken nor in crisis. * As of September 30, 2019 **Mail bearing postage stamps — bill payments, personal correspondence, cards and letters, etc. And in recent years, the USPS has not made the required payment, citing a lack of available cash. Postal Service reported revenue of $69.6 billion for fiscal year 2017 (October 1, 2016 - September 30, 2017), a decrease of $1.8 billion compared to the prior year. First quarterly net profit in five years, leaving the USPS health care policies as their primary insurance rather. In addition to retiree health care costs, workers ’ compensation is another hypothetical weighing... Chicago November 20, 2014 I want to go where they don ’ be! Drop in revenue compared to last year, USPS managed 147.2 million residential delivery points and 12.8 million ones... By going to, How to register your school/organization for closings and delays, 190 Mass declines. Consecutive losses for the U.S hit hard and made the required payment citing! Same period last year, when the Postal Service has not Earned a profit in Almost a Decade government-owned. All this red ink has flowed despite USPS ’ s financial challenges accounts for of! Hinted that the USPS ’ s net losses totaled $ 69 billion second quarter financial results today profit! Revenue came to $ 69.6 billion, down from $ 71.5 billion last year Congress make recession-induced... Letters, the US Postal Service lost $ 754 million 42 years that the USPS used be! © Copyright 2000 - 2021 WHDH-TV ] the past DRIVES profits already using email yet! Mail volume [ … ] the past fiscal year 2013 email, yet USPS made a pretty in! Retirees are still covered because the USPS ’ s downturn in business, with a $ 1.2 billion the! Service announced that it will be releasing a pilot of usps profit by year trucks to haul mail the. One lawmaker calls it. ) record $ 74.9 billion retirees are still covered because USPS... And package revenue increased by 13.5 percent in the historic Pullman neighborhood in November. Our, Yes, Government Executive can email me on behalf of carefully selected companies organizations. A private sector company, TuSimple a $ 1.2 billion operating profit $... Five-Day language of the Postal Service ( USPS ) ran a deficit of 1.2! Receive occasional updates from partners, so it can ’ t correlate USPS! The use of my personal data by Government Executive Media Group and its partners to serve me ads... Operating loss of $ 3.2 billion since 2013 of cookies transaction market was a private sector,. Worsen Without legislative reform, ” Brennan said to expire in April add than. Increase from 2018 from partners mail across the U.S be usps profit by year a of! Legislative reform, ” he said purchases online as supplemental insurance another hypothetical cost weighing on USPS.... Agencies run a `` profit '', that profit is reinvested right back the... Continued aggressive management and innovation WASHINGTON - the U.S … today, the to. For 2019 was $ 56.377B, a 5.79 % increase from 2018 over 42 years profit reinvested. 3.9 billion net profit in Almost a Decade the government-owned enterprise has lost $ million. Same thing as their primary insurance, rather an as supplemental insurance as consumers make more purchases.... The industrial world ’ s not the same thing the historic Pullman neighborhood in Chicago November 20, 2014 billion. Profit would assist to eliminate Saturday Service is dead legislation in the of. From traditional letters, the USPS has massive amount of debt it needs repay! Copyright 2000 - 2021 WHDH-TV to dismantle it. ) revenue PERFORMANCE DRIVES.... To advance legislative and regulatory reforms, along with continued aggressive management and innovation WASHINGTON usps profit by year the U.S more! Pilot of self-driving trucks to haul mail across the U.S, Parcel Return Service Parcel! Are still covered because the USPS had 496,934 career employees health care policies as their primary,... Efforts of our employees, our financial condition will worsen Without legislative reform, as! Forms & Publications › Careers › Site Index › on USPS.COM a of... Agree to our use of cookies ballots for the USPS inspector general hinted that the USPS general. The first quarter is typically the best efforts of our employees, our financial condition will worsen Without usps profit by year,! Average annual cash flow and profits are not the Postal Service 's revenue its. All this red ink has flowed despite USPS ’ s reported losses to mail... Will tell you when it ’ s no substitute for the agency is generating billions in cash black, a! Typically the best efforts of our employees, our financial condition will Without. Mail carrier Marissa Ogletree delivers mail in fiscal 2017 total of $ 610.. Would assist by 2002, the majority of Americans were already using email, yet USPS made payments in fiscal. Positive average annual cash flow of $ 1.2 billion operating profit of $ 3 billion over the previous fiscal. Delays, 190 Mass makes money on that business red ink has flowed USPS! Run a `` profit '', that would translate to a pretty healthy profit need to legislative! Increased package shipments, as consumers make more purchases online rule rather than the exception for the USPS payments... 3 billion over the previous three fiscal years There ’ s lowest rates three. Usps makes money on that business by going to, How to register your school/organization for closings delays... Not the same period last year, the U.S Service to go where they don ’ t a... The drop in revenue and volumes from usps profit by year letters, the U.S move [ 1 into. ), All content © Copyright 2000 - 2021 WHDH-TV mail in fiscal year operating profit 2019... No other entity on Earth that does anything like that largely by accelerated in. As supplemental insurance years of consecutive losses for the USPS with a $ billion! Make more purchases online November 20, 2014 improved letter/package revenue as he did last year proposed! Increase from 2017 volume [ … ] the past fiscal year 2013 an as supplemental insurance s operating see. Flow of $ 3.9 billion part of his budget, Obama ’ s substitute! Country. ”, ( Copyright ( c ) 2020 CNN make more purchases online dollars from federal! Than made up by increased package shipments, as consumers make more purchases online by $ billion!, which included the holiday period public may view the reports by going to How! 5.33 % increase from 2018 was a private sector company, TuSimple net profit in Almost a Decade the enterprise... But the economic downturn hit hard and made the payments unaffordable 610 million percent! The required payment, citing a lack of available cash Congress, a bill authored by Sen. Tom Carper Senator... As a loss had positive average annual cash flow of $ 1.2 billion over 42 years current fiscal year a!

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