While Shipping and Package Services Revenue increased 9.1 percent this year, the USPS indicated that “legislative burdens and constraints” contributed to an overall 5.5 billion dollar loss in 2014.
In a press release issued today, the USPS reported a $569 million increase in operating revenue from Shipping and Package Services. Additionally, the organization indicated that increased pricing introduced last January contributed positive revenue.
As a reminder, overall debt loss was $5 billion in 2013. In 2014, the USPS was affected by many of the same legislative fees that contributed to its 2013 losses. (Please note: Fiscal year 2014 was October 1st, 2013 to September 20th, 2014.)
“Excluding a one-time adjustment to revenue of $1.3 billion in 2013 resulting from a change in accounting estimate for Forever stamps, 2014 operating revenue would have increased by $1.9 billion,” today’s press release stated.
The required Health Benefit Fund contribution of $5.7 billion was another fee that significantly contributed to 2014 losses. The USPS also added that $1.2 billion was spent in “non-cash worker’s compensation expense, consisting of $485 million released to changes in interest rates and $697 million of other non-cash worker’s compensation expenses.”
On Monday, the USPS announced a cyber-security breach that compromised postal data; they do not believe fiscal data was compromised or altered in this breach.
Information released today also compared several changes from 2013 to 2014:
- Total mail volume was 155.4 billion pieces compared to 158.2 billion pieces a year ago, a decrease of 2.8 billion pieces or 1.8 percent.
- First-Class Mail and Standard Mail volume decreased by 2.2 billion and 495 million pieces, respectively.
- Operating expenses were $73.2 billion in 2014 compared to $72.1 billion in 2013
An adjustment to required delivery frequency, the authority to expand products and services, integration of the Health Benefit Program to Medicare, and reforming the workers compensation program are several legislative requirements the USPS stated are key to increasing and maintaining positive revenue.