CFO CORBETT REPORTS ON SECOND QUARTER FINANCIAL PERFORMANCE
Despite a year-to-date (YTD) reduction of 16 million workhours compared to last year, the Postal Service experienced operating costs $100 million above plan in quarter 2 (Jan. 1 to March 31) — ending the quarter with a YTD net loss of $2.6 billion.
Total mail volume in quarter 2 continued to decline, falling more than 500 million pieces compared to the same period last year, according to Chief Financial Officer and Executive Vice President Joe Corbett. Although Package Services and Standard Mail volumes increased modestly, the increase was not sufficient to offset the loss of revenue from reduced First-Class Mail volumes.
“Electronic diversion of First-Class Mail continues to be the primary cause of our revenue shortfall,” reports Corbett in his latest “Dollars and ¢hange” quarterly video review of USPS finances. And that decline in First-Class Mail volume is expected to continue.
To help the Postal Service become a leaner, faster, smarter organization, Corbett encourages employees to help control expenses by looking for ways to improve efficiencies. “It’s all about making smarter decisions based on reliable data to build solid processes,” he says. “When we do that, the savings will come naturally.”