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WASHINGTON, DC
— The U.S. Postal
Service announced that mail volume was down 3.0 percent, or 1.7
billion pieces, for the first quarter of fiscal 2008, according to
preliminary financial results presented today to the Postal Service
Board of Governors.
First-Class Mail
volume decreased 3.9 percent and Standard Mail decreased 2.6 percent
in the quarter ending Dec. 31, 2007.
Chief Financial
Officer and Executive Vice President H. Glen Walker attributed the
declining mail volume to “disturbing trends” in the overall U.S.
economy.
“Unfortunately,
two key sectors of the economy — finance and housing — suffered a
downturn in the first quarter, and they’re both heavy users of the
mail,” said Postmaster General John Potter.
Net income for the
first quarter is estimated at $672 million on revenue of $20.4
billion.
“Although revenue
is higher than in the same quarter last year, due to the price
increase last May, it is $500 million less than expected,” Potter
said. “We’re working to offset the disappointing revenue with cost
reductions and new strategies for growth.”
Final
first-quarter financial results will be released in February.
First
Quarter Service Scores
National on-time
performance scores for the delivery of First-Class Mail hit all-time
first-quarter highs in two of the three categories the Postal Service
tracks. National overnight service was 96 percent on-time – a first
for three quarters in a row. Two-day service was 93 percent on-time.
Three-day performance was 88 percent, a two-point improvement over
the same period last year.
“These are
excellent service scores for the first quarter,” said Potter,
”especially given winter weather conditions and our busiest mailing
season.”
First-Class
Mail performance is measured independently by IBM Global Business
Services. The process measures First-Class Mail from the time it is
deposited into a collection box until it is delivered to a home or
business.
Other Board Action
The Board today
approved three facility projects: expansion of the processing and
distribution centers in West Sacramento, CA, and Providence, RI, and
the purchase and renovation of an existing building and site to serve
as the Perris, CA, Delivery Distribution Center.
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