In brief: The U.S. Seven months into the current fiscal year, the US Postal Service's revenue exceeds its expenses by $1.353 billion. By 2002, the majority of Americans were already using email, yet USPS made a pretty penny in the years that followed. Unfortunately, losses are the rule rather than the exception for the agency. Excluding the pre-funding expense the USPS has turned a $660 million profit delivering mail in fiscal year 2013. Instead they use the USPS health care policies as their primary insurance, rather an as supplemental insurance. The US Postal Service reported its second quarter financial results today. Search Store Stamps. Sort by: Issue Date. 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. Profits grew $1.1 billion over the same period last year, when the Postal Service lost $754 million. 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. The public may view the reports by going to, How to register your school/organization for closings and delays, 190 Mass. That puts USPS operations $3.2 billion in the black over the past three years. Email adoption numbers simply don’t correlate with USPS’s downturn in business. 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. Last year, the U.S. USPS does not directly receive tax dollars from the federal government. The financial problems have nothing to do with the expected surge in mail-in ballots for the election in November. 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 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. Saved. communities now considered high-risk for coronavirus, Didn’t receive a stimulus check? © 2021 by Government Media Executive Group LLC. 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. As of last year, USPS managed 147.2 million residential delivery points and 12.8 million business ones. the USPS used to be "profitable" for many years. This material may not be published, broadcast, rewritten, or redistributed. See also: Find Postal Service Jobs Without Being Scammed But in reality, the agency is generating billions in cash. All figures are for one fiscal year. 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. 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. 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. 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. 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. more than 30,000 civilian federal workers. In the fiscal year ending September 30, 2018, around 22.4 billion pieces were sent and received in the transaction market. Posted on May 10, 2017 by postal. And in recent years, the USPS has not made the required payment, citing a lack of available cash. (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. WASHINGTON — The U.S. 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. But lawmakers skipped or cut the payments for four years, leaving the USPS with a $1.6 billion IOU. Retirees are still covered because the USPS made payments in the past. 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 … A report by the USPS inspector general hinted that the USPS might declare that sum as a loss. The decline in letter volume has been more than made up by increased package shipments, as consumers make more purchases online. UPS annual gross profit for 2018 was $53.293B, a 5.33% increase from 2017. Postal Service Has Not Earned a Profit in Almost a Decade The government-owned enterprise has lost $51.7 billion since 2007. Postal Store. The USPS has no stockholders. 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. As part of his budget, Obama -- as he did last year -- proposed Congress make the recession-induced surcharge permanent. ON ABOUT.USPS.COM. All Rights Reserved. Yes, Government Executive can email me on behalf of carefully selected companies and organizations. The new USPS Financial Report issued Friday further validates the claim that the Postal Service is neither broken nor in crisis. 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. 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. The 18-wheelers were developed by startup company, TuSimple. Shipping and package revenue increased by 13.5 percent in the quarter, which included the holiday period. While the Postal Service has long lobbied for the modified delivery schedule, it has dropped that proposal from its “must-have” list in legislation. USPS now has three straight years of operating in the black, with a total operating profit of $3.2 billion since 2013. UPS annual gross profit for 2019 was $56.377B, a 5.79% increase from 2018. The USPS has massive amount of debt it needs to repay, for which profit would assist. All rights reserved. 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. “UPS and FedEx depend on Postal Service to go where they don’t want to go,” he said. It had positive average annual cash flow of $3 billion over the previous three fiscal years. Read more. OPERATING PROFIT. 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. 1 - 11 of 11 Results. 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)? If the USPS was a private sector company, that would translate to a pretty healthy profit. The lower revenues were driven largely by accelerated declines in First-Class and Marketing Mail volumes. 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. Newsroom › USPS Service Alerts › Forms & Publications › Careers › Site Index › ON USPS.COM. RISING USPS REVENUE OVER TIME MAIL REVENUE PERFORMANCE DRIVES PROFITS. It has 31,322 USPS-managed retail post offices. 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. 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. But Postal Service revenue has mostly fallen or stagnated since 2008, when it hit a record $74.9 billion. That was the first rollback since 1919 and it makes little financial sense because USPS already has the industrial world’s lowest rates. 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. NEXT STORY: Nobody asks why the Department of Agriculture didn’t turn a profit last year. This tool will tell you when it’s coming, Don’t panic! (“Utterly absurd,” as one lawmaker calls it.). Business Supplies. 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. The money won't magically disappear. The U.S. Excluding the Postal Service, Obama’s budget would add more than 30,000 civilian federal workers in fiscal 2017. “Despite these achievements and the best efforts of our employees, our financial condition will worsen without legislative reform,” Brennan said. But even with the drop in revenue and volumes from traditional letters, the USPS makes money on that business. The U.S. USPS.com Home › Buy Stamps & Shop › Print a Label with Postage › Customer Service › Delivering Solutions to the Last Mile › OTHER USPS SITES. In the topsy turvy world of Washington, however, it means the USPS is still "bleeding cash"- … 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. 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. A report by the USPS inspector general hinted that the USPS might declare that sum as a loss. 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. Cards & Envelopes. 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. Issues U.S. This statistic depicts the operating revenue of the United States Postal Service (USPS) between the fiscal years 2000 and 2020, broken down by segment. "There is … 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. 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. WHDH and WLVI broadcast educational and informational programming for children, and file quarterly reports with the FCC detailing the station's outreach to children. Newsroom › USPS Service Alerts › Forms & Publications › Careers › Site Index › ON USPS.COM. For the period from January 1 to March 31, the USPS had a net operating profit (aka "controllable income" of $576 million. 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. Mail Volume […] A lot of govt agencies run a "profit", that profit is reinvested right back into the govt/agency. UPS gross profit for the twelve months ending September 30, 2020 was $61.221B, a 10.62% increase year-over-year. Enter Search term for Search USPS.com. Despite a solid 1.5 percent rise in revenue compared to last year, USPS reported an operating loss of $1.951 billion. 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. The 1993 law would have required taxpayers to provide the USPS a total of $1.2 billion over 42 years. 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. It has another 136,174 non-career employees. WASHINGTON — The U.S. 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. 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. 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. * As of September 30, 2019 **Mail bearing postage stamps — bill payments, personal correspondence, cards and letters, etc. 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. The first quarter is typically the best of the year for the Postal Service. Those had increased over the previous year by … Collectors. This marks 13 years of consecutive losses for the USPS, totaling $77.8 billion. “There’s no other entity on Earth that does anything like that. 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