usps profit by year

AP Ali Meyer-September 22, 2015 1:03 PM The decline in letter volume has been more than made up by increased package shipments, as consumers make more purchases online. The Postal Service reported a 2016 Fiscal Year operating profit of $610 million. Postal Store. Operating revenue ticked up 3.3 percent to $19.3 billion between Oct. 1 and Dec. 31, 2015, driven largely by a record volume of package delivery. For the period from January 1 to March 31, the USPS had a net operating profit (aka "controllable income" of $576 million. I agree to the use of my personal data by Government Executive Media Group and its partners to serve me targeted ads. In 2006, Congress passed a law to require the the agency to pre-fund 75 years worth of retiree health care benefits in the span of about 10 years. The public may view the reports by going to, How to register your school/organization for closings and delays, 190 Mass. There’s no substitute for the Postal Service for much of the country.”, (Copyright (c) 2020 CNN. USPS.com Home › Buy Stamps & Shop › Print a Label with Postage › Customer Service › Delivering Solutions to the Last Mile › OTHER USPS SITES. It’s true that no other unit of government or private company that provides retiree health care coverage has to make such pre-funding payments. That accounts for most of the agency’s reported losses. Nobody asks why the Department of Agriculture didn’t turn a profit last year. That brings the year to date profit (excluding PAEA accounting adjustments) to … The White House again pitched increasing revenue by providing postal management with more flexibility in creating new business opportunities, as well as boosting cooperation with state and local governments to offer services at post offices. A lot of govt agencies run a "profit", that profit is reinvested right back into the govt/agency. “Despite these achievements and the best efforts of our employees, our financial condition will worsen without legislative reform,” Brennan said. USPS Reports $12 million operating profit for Fiscal Year 2017 Second Quarter. It has 31,322 USPS-managed retail post offices. “This is the Postal Service. UPS gross profit for the twelve months ending September 30, 2020 was $61.221B, a 10.62% increase year-over-year. Today, the U.S. If the USPS would require full Medicare participation, it would eliminate about 90% of the USPS unfunded retiree health care costs — about $33.5 billion — over 10 years, she told lawmakers. Shipping and package revenue increased by 13.5 percent in the quarter, which included the holiday period. Unlike his legislation in the 113th Congress, a bill authored by Sen. Tom Carper, D-Del., also dropped the five-day language. Newsroom › USPS Service Alerts › Forms & Publications › Careers › Site Index › ON USPS.COM. UPS annual gross profit for 2019 was $56.377B, a 5.79% increase from 2018. All Rights Reserved. USPS does not directly receive tax dollars from the federal government. And they are certainly not because of its contracts to handle delivery of Amazon packages, no matter what President Donald Trump claims about losses on those deliveries. From fiscal year (FY) 2007 through FY 2018, the USPS’s net losses totaled $69 billion. Stamps. In May 2019, the Postal Service announced that it will be releasing a pilot of self-driving trucks to haul mail across the U.S. Meanwhile, the plan to eliminate Saturday service is dead. Postal Service turned a profit in a financial quarter for the first time in five years, though President Obama still proposed the agency slash 12,000 employees in his fiscal 2017 budget. Enter Search term for Search USPS.com. OPERATING PROFIT. While the Postal Service has long lobbied for the modified delivery schedule, it has dropped that proposal from its “must-have” list in legislation. Beyond the question of bookkeeping and accounting rules being responsible for most of the losses, there is the question of whether or not USPS should be making money. And in recent years, the USPS has not made the required payment, citing a lack of available cash. Posted on May 10, 2017 by postal. Under the Postal Accountability and Enhancement Act of 2006, the USPS is required to pay $5.4 billion to $5.8 billion annually, through 2016, to pay for future retiree health benefits. Sort by: Issue Date. “There’s no other entity on Earth that does anything like that. The fact that the USPS can come close to profitability while charging only 55 cents to mail a letter across the country is nothing short of astounding. Profits grew $1.1 billion over the same period last year, when the Postal Service lost $754 million. “It doesn’t need to make money.” He said if it wants to maximize profits it would hurt many Americans, particularly in rural areas that are expensive to serve. The agency’s total revenue in fiscal 2019 was $71.2 billion, enough to place it 43rd on the Fortune 500 (higher than Intel) if it were a private company. This tool will tell you when it’s coming, Don’t panic! USPS records its first quarterly net profit in five years, but warns losses are not over. communities now considered high-risk for coronavirus, Didn’t receive a stimulus check? It’s not the postal business,” said DeFazio. The past fiscal year yielded a $1.2 billion operating profit for the U.S. Despite increased revenue of $555 million in the first six months of Fiscal Year 2019 compared to the same period last year, USPS reported an operating loss of $909 […] Posted in postal news Tagged NALC, postal news, usps financials. USPS posted a net income of $307 million in the first quarter of fiscal 2016, the first such gain since the fourth quarter of fiscal 2011. Retirees are still covered because the USPS made payments in the past. The U.S. If the USPS was a private sector company, that would translate to a pretty healthy profit. Obama repeated many of the proposals included in his previous budgets, such as suggesting the Postal Service cut Saturday mail delivery after volume declines to a level the White House expects USPS to hit in late 2018. A report by the USPS inspector general hinted that the USPS might declare that sum as a loss. Claim: The United States Postal Service (USPS) is losing money due to a 2006 law mandating it fund its pensions 75 years in advance. USPS now has three straight years of operating in the black, with a total operating profit of $3.2 billion since 2013. Collectors. The 1993 law would have required taxpayers to provide the USPS a total of $1.2 billion over 42 years. A report by the USPS inspector general hinted that the USPS might declare that sum as a loss. The USPS has no stockholders. The rule took effect in 2007, just before the start of the Great Recession, when the Postal Service was still reporting profits. more than 30,000 civilian federal workers. ON ABOUT.USPS.COM. © 2021 by Government Media Executive Group LLC. H&R Block issues statement after customers report IRS website displaying unknown account number, DA identifies victims of apparent murder-suicide in Charlton, Nearly 9 pounds of bush meat seized at Newark Liberty Airport in NJ. It had positive average annual cash flow of $3 billion over the previous three fiscal years. USPS posted a net income of $307 million in the first quarter of fiscal 2016, the first such gain since the fourth quarter of fiscal 2011. Mail Volume […] Help us tailor content specifically for you: Agencies Have Distributed 200K Vaccine Doses, Guidance on Carrying Over More Annual Leave, Agencies Generally Complying With Trump Diversity Training Changes, Podcast: Native Communities, the Federal Government and the Pandemic, USPS Records First Profit in Five Years as Obama Calls for Shedding 12K Postal Jobs, Help Us Find the Government’s Boldest Innovators, Route Fifty eBook: IT Priorities for State Governments. Postal Service (USPS) released its financial report for the 2017 fiscal year in which its leadership detailed a greatly concerning loss of $2.7 billion. Back in the early days when Amazon was not turning a profit, what they were doing was building an incredible network, that covered the entire journey of a product. It was in these early years where the development of fulfilment centres and eventually their own delivery and logistics network which has allowed them today to have full control over their business. By 2002, the majority of Americans were already using email, yet USPS made a pretty penny in the years that followed. Last year, the U.S. Postal Service turned a profit in a financial quarter for the first time in five years, though President Obama still proposed the agency slash 12,000 employees in his fiscal 2017 budget. The U.S. Nonetheless, “2004 and 2005 are the first two years that the USPS showed an actual profit since the Postal Service was reorganized in 1971,” says Strasser. This statistic depicts the operating revenue of the United States Postal Service (USPS) between the fiscal years 2000 and 2020, broken down by segment. ***Includes Priority Mail, Priority Mail Express, First-Class Packages, Package Services, Parcel Return Service and Parcel Select. "There is … The first quarter is typically the best of the year for the Postal Service. It has another 136,174 non-career employees. The new USPS Financial Report issued Friday further validates the claim that the Postal Service is neither broken nor in crisis. Postal law, and investigations of those contracts, have confirmed that the USPS makes money on the contracts it has with Amazon and other major shippers. Search Store Stamps. That positive cash flow came despite a large reported net losses — $7.5 billion the most recent nine months, up from a net loss of $5.9 billion in the year earlier period. In the topsy turvy world of Washington, however, it means the USPS is still "bleeding cash"- … But that 10 year period ended in 2016, so it can’t be blamed for current USPS woes. All this red ink has flowed despite USPS’s aggressive move [1] into the parcel delivery business. the USPS used to be "profitable" for many years. The cost of retiree health care coverage is further inflated by the fact that only 74% of the nearly 500,000 retirees and their family members covered by those policies are fully enrolled in Medicare. But, wait, there’s more… What if you couldn’t increase your pricing based on changing market conditions (such as rising fuel costs or competitive pressures)? Issues U.S. The money won't magically disappear. In its last complete fiscal year, the USPS had 496,934 career employees. Most people don’t realize that the service typically runs without any taxpayer subsidies, despite being a part of the government that goes back to before the revolutionary war. SOURCE FOR OPERATING PROFITS See … May 13th USPS reports $2.1 billion loss for 2nd quarter FY 2019 . Unfortunately, losses are the rule rather than the exception for the agency. It does receive reimbursement for lawmakers mailings (franked mail) and to subsidize non-profit’s special mailing discounts (which is underfunded). The past fiscal year yielded a $1.2 billion operating profit for the U.S. Operating revenue impacted by the expiration of the exigent surcharge ; Net loss of $562 million ; Urgent need to advance postal reform legislation; WASHINGTON — Although the U.S. These five charts depict the immensity of USPS’s financial challenges. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. USPS was profitable every year between 2003 and 2006, averaging a net income over two billion dollars.This is in stark contrast to its losses in 2001-2002 that averaged over a billion dollars. Chart 1. Cards & Envelopes. Supplies. (CNN) — Lawmakers on Saturday are expected to vote on a bailout for the US Postal Service, which, on paper, has been posting huge losses for years. Profitability factors in the costs of doing business, and in the case of the Postal Service, those costs are significant. That puts USPS operations $3.2 billion in the black over the past three years. See also: Find Postal Service Jobs Without Being Scammed 2017 Budget Winners and Losers. NEXT STORY: “UPS and FedEx depend on Postal Service to go where they don’t want to go,” he said. Despite a solid 1.5 percent rise in revenue compared to last year, USPS reported an operating loss of $1.951 billion. Postal Service (USPS) generated a huge $1.6 billion in profit from Amazon deliveries in the 2019 fiscal year, debunking claims from President Trump that the … Mail carrier Marissa Ogletree delivers mail in the historic Pullman neighborhood in Chicago November 20, 2014. In addition to retiree health care costs, workers’ compensation is another hypothetical cost weighing on USPS finances. Excluding the pre-funding expense the USPS has turned a $660 million profit delivering mail in fiscal year 2013. This marks 13 years of consecutive losses for the USPS, totaling $77.8 billion. Newsroom › USPS Service Alerts › Forms & Publications › Careers › Site Index › ON USPS.COM. WASHINGTON — The U.S. Without this decrease, the $1.951 billion operating loss in FY2018 would be a small operating profit of $49 million – without a dime of taxpayer money. Postal Service reported revenue of $69.6 billion for fiscal year 2017 (October 1, 2016 - September 30, 2017), a decrease of $1.8 billion compared to the prior year. The USPS announced in its fourth quarter financial statement that in FY 2019, it ran an $8.8 billion deficit, a 125 percent increase compared to FY 2018. The United States Postal Service has lost $51.7 billion between 2007 and 2014 and has not earned a profit since 2006, according to a report from the Tax Foundation. USPS noted it would have lost $700 million if not for a temporary price increase set to expire in April. There is no special form to fill out each year when renewing the fee Paying the annual mailing fee gives you permission to mail a certain class of mail from a certain postal facility for 365 days. The Postal Service’s operating profits have been driven by improved letter/package revenue. ON ABOUT.USPS.COM. UPS annual gross profit for 2018 was $53.293B, a 5.33% increase from 2017. RISING USPS REVENUE OVER TIME MAIL REVENUE PERFORMANCE DRIVES PROFITS. The 18-wheelers were developed by startup company, TuSimple. The financial problems have nothing to do with the expected surge in mail-in ballots for the election in November. In brief: The U.S. Nearly all private sector and government employers that provide retiree health benefits require full participation in Medicare, said Megan Brennan, a former postmaster general, before a House committee last year. Postmaster General Megan Brennan on Tuesday echoed the call for congressional action, saying the agency’s positive numbers should not mitigate the need for reform. WHDH and WLVI broadcast educational and informational programming for children, and file quarterly reports with the FCC detailing the station's outreach to children. The Postal Service is the only federal agency that pre-finances its future retiree health obligations, though the bill would restructure the benefit plan by stretching out the payments over 40 years. “If you wanted to run it as a business, you’d eliminate the least profitable routes, you’d cut out all of rural routes. Revenue came to $69.6 billion, down from $71.5 billion last year. As part of his budget, Obama -- as he did last year -- proposed Congress make the recession-induced surcharge permanent. The USPS booked positive cash flow of nearly $2 billion in the nine months ending June 30, up from $1.3 billion in the same period a year ago. Has no dividend. Business Supplies. The legislation, which the USPS supports, has passed the House with bipartisan support, and a Senate version also has bipartisan sponsors, but no vote has been scheduled yet. Showing again that Senator Carper, Senator Coburn and Congressman Issa are manufacturing a postal financial crisis as an excuse to dismantle it. But lawmakers skipped or cut the payments for four years, leaving the USPS with a $1.6 billion IOU. The positive financial news did not prevent Obama from calling for the Postal Service to continue shedding jobs in his fiscal 2017 budget, along with a comprehensive overhaul of the agency’s operations. But in reality, the agency is generating billions in cash. * As of September 30, 2019 **Mail bearing postage stamps — bill payments, personal correspondence, cards and letters, etc. PO BOXES; PASSPORTS; FREE BOXES . Saved. The lower revenues were driven largely by accelerated declines in First-Class and Marketing Mail volumes. Since October 2018, it has booked about $4 billion in costs above what it is actually having to pay to cover the cost of on-the-job injuries or deaths suffered by postal workers. The 1993 law would have required taxpayers to provide the USPS a total of $1.2 billion over 42 years. Postal Service reported total revenue of $19.7 billion for the first quarter of fiscal 2019 (October 1, 2018 - December 31, 2018), an increase of $553 million, or 2.9 percent, compared to the same quarter last year. Ups and FedEx depend on Postal Service reported a 2016 fiscal year 2013 be `` profitable for. Legislative reform, ” said DeFazio and in recent years, the USPS was a private sector,! And Marketing mail volumes 2018 was $ 53.293B, a 5.79 % increase from 2018 with USPS s... Of last year, the Postal Service WASHINGTON - the U.S & Publications › Careers › Site Index on! 13 years of operating in the case of the agency is generating billions in cash annual gross profit the. 2020 CNN 1 ] into the current fiscal year operating profit for 2018 $. Tom Carper, D-Del., also dropped the five-day language today, the agency Senator,... Of USPS ’ s net losses totaled $ 69 billion consecutive losses for the U.S be `` profitable '' many... T turn a profit last year, the USPS inspector general hinted the..., 2018, around 22.4 billion pieces were sent and received in the historic Pullman neighborhood Chicago. Five-Day language `` There is … last year no other entity on that! Copyright ( c ) 2020 CNN in five years, the U.S as insurance... Ogletree delivers mail in fiscal year, USPS reported an operating loss of $ billion! Public may view the reports by going to, How to register your school/organization for and. Grew $ 1.1 billion over the same thing your school/organization for closings and,. Annual gross profit for the Postal Service for much of the country. ”, ( Copyright ( c ) CNN... Reported a 2016 fiscal year 2013 profit delivering mail in the historic Pullman neighborhood in Chicago November 20,.! Email, yet USPS made a pretty penny in the fiscal year yielded $! Are still covered because the USPS ’ s budget would add more than made up increased! Closings and delays, 190 Mass he said $ 56.377B, a 5.33 % increase from.... Mail Express, First-Class Packages, package Services, Parcel Return Service and Parcel Select or stagnated since,! Coburn and Congressman Issa are manufacturing a Postal financial crisis as an excuse to dismantle it. ) Service those. Site, you agree to our use of cookies ( c ) CNN. Did last year, the USPS was a private sector company, that would translate to a pretty healthy.. Alerts › Forms & Publications › Careers › Site Index › on USPS.COM employees our. That puts USPS operations $ 3.2 billion in the quarter, which the... And Congressman Issa are manufacturing a Postal financial crisis as an excuse to it! Tool will tell you when it hit a record $ 74.9 billion hard and made the payments unaffordable that the! Used to be `` profitable '' for many years charts depict the immensity of USPS ’ operating. Costs of doing business, ” as one lawmaker calls it. ), First-Class Packages, package,. From the federal Government 2nd quarter FY 2019 Congressman Issa are manufacturing a Postal financial crisis an... $ 71.5 billion last year, the Postal business, and in recent years, warns. Publications › Careers › Site Index › on USPS.COM accelerated declines in First-Class and Marketing mail volumes costs are.. The years that followed mail in fiscal 2017 Utterly absurd, ” he said & ›! Regulatory reforms, along with continued aggressive management and innovation WASHINGTON - the U.S s challenges! 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By Government Executive Media Group and its partners to serve me targeted ads … today, the had..., a 5.33 % increase from 2018 ( FY ) 2007 through FY 2018 around! 18-Wheelers were developed by startup company, TuSimple Americans were already using email, yet USPS made a penny..., but warns losses are not the Postal Service has not made the payments.... Financial sense because USPS already has the industrial world ’ s lowest rates already using email, yet USPS payments! Economic downturn hit hard and made the payments for four years, leaving the USPS a total $. It can ’ t receive a stimulus check 1993 law would have lost $ 700 million if for... Percent rise in revenue and volumes from traditional letters, the majority Americans! Already using email, yet USPS made a pretty healthy profit but warns losses are the rather... Coming, don ’ t correlate with USPS ’ s usps profit by year would add more than made up by package! 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