U.S. Postal Service Reports Revenue Growth

The U.S. Postal Service said its revenue rose 4.7% in the latest quarter thanks to stronger shipping volume and price increases.

For the three months ended March 31, USPS said revenue increased to $17.73 billion from $16.95 billion a year earlier. Overall volume rose 1.4%, driven by 11% growth in shipping and package volume.

The USPS has been striving to increase its share in an e-commerce market long dominated by United Parcel Service Inc. and FedEx Corp. However, the growth in USPS's shipping volume also has contributed to rising costs, including an increase in hours worked and transportation expenses. During the latest quarter, operating expenses increased 7.4%.

Excluding special items, such as prepaying retiree health benefits and certain changes in workers' compensation expenses, USPS reported that its controllable income rose to $576 million from $313 million a year earlier.

But over all, USPS reported a loss of $2.04 billion, compared with a year-earlier loss of $1.47 billion.

"While we have been successful in achieving controllable income during the quarter, we are still reporting net losses and contending with long-term financial challenges," Postmaster General and Chief Executive Megan J. Brennan said in a statement.

During February, the USPS posted its first quarterly profit since 2011, earning $307 million after a holiday delivery season that beat expectations due in part to more flexibility from its unions regarding the hiring of seasonal workers.

Looking ahead, USPS has been anticipating added pressure on results with the April 10 expiration of an exigent surcharge, which contributed $519 million to operating revenue in the March quarter.

Write to Tess Stynes at [e-mail]

(END) Dow Jones Newswires

May 10, 2016 10:05 ET (14:05 GMT)

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