Significant progress
USPS raises revenue and cuts costs
In his latest “Dollars and ¢hange” video, CFO Joe Corbett discusses the good news surrounding the financial headway USPS made during the first six months of 2013.
“We made significant progress in increasing revenues and cutting costs for all the areas where we have the legal and commercial flexibility to act,” says Corbett.
Corbett notes that the Postal Service outperformed its two largest competitors, growing revenue in the overall shipping and package business by 6.9 percent. USPS also raised revenue for Every Door Direct Mail by 80 percent and advertising and standard mail by almost three percent.
Revenue increased over the prior period in fiscal year 2012, the first such increase the Postal Service has experienced in five years.
Efficiency measures, such as consolidating plants, helped cut expenses by $200 million. Inflation offset the gains in efficiency and helped contribute to a net income loss of $3.1 billion on revenue of $34 billion.
Corbett says more progress is necessary. “We need to execute our 5-year business plan, get legislation passed and continue to deliver at the highest standards to improve our financial position,” he says.
Corbett closes the video by thanking employees for their hard work and encouraging them to become familiar with the plan.
Beanmaster read the article closer. These numbers account for six months of the current fiscal year recording revenue of $34 billion. In another six months you may see another $34 billion for total revenue of $68 billion which is more on par for what the USPS has been producing the last several years.
Then why is it that every time PMG Donuthole is on t.v. He’s blathering on and on about how much money the USPS is hemorrhaging?
really revenues used to be closer to 66 billion in 2006
Not really sure how closing plants saves money as most are not closed. They are often still open because the front lobby is still being used in many of these buildings. The mail generated by these offices is sent many miles to the receiving office, with more then half the volume turning around and going back to the originating office.
Many of the receiving offices were not large enough for the equipment used to sort mail and had to spend millions of dollars to expand the building, plus millions more to move the machines.
Savings were probably from the 25,000 union members that retired in January, plus many more that are retiring every month. This money is not part of the operating budget.
Revenues increasing, more bonus to be shared for the management. Don’t worry, October still have money pay to employee, every body happy.