The U.S. Postal Service ended the June 30, 2014, quarter with a net loss of $2.0 billion, compared to a net loss of $740 million for the same period last year.
The agency said revenue continued to improve as a result of the exigent mail price increase in January, successful sales and marketing initiatives, and continued success in growing the package business.
Shipping and Package revenue was up 6.6 percent in the quarter. Standard Mail revenue was up 5.1 percent, driven by a 0.9 percent increase in volume and the January 2014 price increase. First-Class Mail volume was down 1.4 percent, but the January price increase offset this decline, resulting in a 3.2 percent revenue increase.
Postmaster General Patrick Donahoe said, “We’re seeing momentum in our package business and continued use of direct mail as an advertising medium. We’ve been effective in developing and marketing our products, and we’re improving how we leverage data and technology – all providing a higher return on mail for many customers and causing them to take a fresh look at the Postal Service.”
The USPS also said the need for comprehensive legislation remains urgent, and said it has been extremely conservative with capital, spending only what is deemed essential to maintain existing infrastructure.
CFO Joseph Corbett said, “To continue to provide world-class service and remain competitive, we must invest up to $10 billion to replace our aging vehicle fleet, purchase additional package sorting equipment, and make necessary upgrades to our infrastructure.”