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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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An independent federal agency, the U.S. Postal Service is
the only delivery service that visits every address in the nation — 146
million homes and businesses. It has 37,000 retail locations and relies on
the sale of postage, products and services to pay for operating expenses, not
tax dollars
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