The revival of the US Postal Service continues to pick up steam according to Quarter 3 financial results released today. For the sixth consecutive quarter the Postal Service turned an operational profit when accounting for costs it can control. Fueled by an avalanche of packages the Postal Service continues to out perform expectations.
NALC President Fred Rolando commented: “Today’s results show the impressive Postal Service financial turnaround continuing in full force. The quarter’s $313 million operating profit puts black ink for the first half of the year above $1.4 billion – surpassing all of last year’s operating profit. Equally encouraging is what produced the operating profit – continuing revenue growth as an improving economy and rising online shopping drive better performances in letter mail and package deliveries. Package revenue is up a striking 11.2 percent this year; first-class letters and standard mail also are up.”
“This three-year trend in operating profitability makes clear the need to strengthen – not degrade – the now-profitable networks. We hope to work with lawmakers on both sides of the aisle, the administration and the new postmaster general to build on the progress achieved in the last Congress, within the mailing industry and among major stakeholders on consensus postal reform that promotes a strong and vibrant Postal Service.”
“We’re pleased with the increase in our controllable net income compared to the same period last year, which demonstrates that our cost containment and revenue strategies are delivering results,” said Postmaster General and Chief Executive Officer Megan Brennan.
The only blemish in this financial report was the continuing unprecedented burden of being the only enterprise in the America that is required by law to pre-fund future retiree health care benefits. The graphics below outlines the absurdity of this requirement.
The Postal Service has updated its business model and through the dedication of its highly unionized work force it has turned an operational profit six consecutive quarters . It’s now time for Congress to update its thinking about postal reform and instead of decimating the worlds best postal service they should be acting to further enhance it. Ideas of plant closings and service cuts now seem quite antiquated in lieu of this economic turnaround.