The Postal Service boosted operating income (before Retiree Health Benefits and non-cash Workers’ Compensation expense) by $1.2 billion during the first half of the fiscal year, but it wasn’t enough to offset ongoing losses, CFO Joe Corbett says in the latest Dollars and ¢hange video.

Operating income measures an organization’s profit after expenses and depreciation costs are subtracted. The first half of the fiscal year ended March 31.

The Postal Service’s revenue during this period was driven partially by its package business, which grew more than 11 percent to $7.3 billion. Standard mail rose 2 percent, while First-Class Mail dropped 1.4 percent.

Overall, the Postal Service’s liabilities exceed its assets by $42 billion. “We are quite obviously in a deep hole. We can’t remain in this situation,” Corbett says.

To improve the balance sheet, the Postal Service is “laser focused on expanding our package and advertising mail business,” Corbett says. USPS has also changed its service standards to allow load leveling of mail volumes across delivery days, which could save as much as $300 million annually.

“While we are performing very well, the Postal Service needs comprehensive legislation to return to solid financial footing,” Corbett says.

via USPS News Link Story – Getting better.