USPS Reports Increasing Loss for FY 2016
The USPS reported a net loss of $ 5.1B for its 2016 fiscal year (October 1, 2015 – September 30, 2016), once again calling attention to the $ 5.8 billion retiree health benefit prefunding obligation that is responsible for the widening gap.
The net loss increased from $ 5.06B and the obligation increased from $ 5.7 billion in 2015.
In a press release, the USPS reiterated that “such losses are likely to persist for the foreseeable future because of mandated costs such as an unaffordable retiree health benefits program that is not fully integrated with Medicare, and an ineffective pricing system.”
Revenues increased year-over-year, but operating costs expanded at a greater rate. First-class mail continued to decrease, going from $ 28.206B in 2015 to $ 27.281B in 2016 and standard mail decreased by $ 10M. The bright spot continued to be shipping and packages, rising from 14.942B in 2015 to $ 17.307B in 2016. The USPS experienced double digit growth in both revenues and volume in this category.
Controllable income (which excludes the prefunding obligation) was $ 610M in 2016. It was $ 1.2B in 2015.
The organization invested $ 1.4B in technology, vehicle, building, and capital improvements in 2016.