The Postal Regulatory Commission today released its Financial Analysis report of the Postal Service’s 2019 financial results. The report was developed using information from the Postal Service’s Fiscal Year (FY) 2019 10-K Statement and measured against its FY 2018 and FY 2019 Integrated Financial Plan, Cost and Revenue Analysis report, Cost Segments and Components report, and the Revenue, Pieces, and Weight report.
The financial position of the Postal Service is dire. In FY 2019, the Postal Service had a net loss from operations of $3.2 billion.Between FY 2018 and FY 2019, net losses from operations increased by 53 percent.The net loss from operations is by far the largest of the decade for the Postal Service, and represents a $1.1 billion decline in profitability. As a labor-intensive organization with a vast, physical delivery network, increases in compensation and benefits, as well as increases in transportation costs, were the primary drivers of a $1.6 billion increase in net operating expenses in FY 2019.When non-operating expenses are included, the total net loss was$8.8 billion. This represents a further decline of $4.9 billion when compared with FY 2018. This is largely due to an increase in the non-cash adjustment to the workers’ compensation expense, resulting from a lower discount rate.
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