The USPS cited an urgent need for legislative and regulatory reforms as it reported its financial performance for fiscal year 2019, ending Sept. 30th. While management said it made progress in containing costs, it said returning the Postal Service to financial health was outside of its control.
Operating revenue rose $514 million to $71.1 billion for fiscal year 2019, driven largely by price increases and continued growth in the Shipping and Packages business.
Interestingly, the 6.1% increase in revenue in the Shipping and Packages business more than offset revenue declines in First-Class and Marketing Mail that were caused by declining volumes.
“Package volume grew slightly at 16 million pieces, or 0.3 percent, continuing a multi-year trend of declining mail volumes and increasing package volumes, although package volume growth slowed considerably during the year.”
Postmaster General Megan Brennan said in Thursday’s press release, “We continue to adjust to declining mail volume and remain focused on leveraging our unique and unrivaled network to gain new customers and grow profitable revenue in the increasingly competitive package business.”
Brennan is set to retire next year. The Federal News Network said the Postal Service has begun its search for her replacement. It also noted that she had pressed Congress to pass a postal reform bill throughout her 5 years at the helm.
Logistics consultant Cathy Roberson noted that Parcel Services volumes, which include Parcel Select, Parcel Return and Marketing Mail Parcels, declined 3%. “Parcel Select volumes probably getting hit as FedEx pulls SmartPost volumes out of USPS network,” she tweeted.
The USPS also faces competition from UPS, which is going after smaller online sellers more aggressively, and from Amazon.
See the full press release on the USPS.com website.