Fuel costs hurt Postal Service

The U.S. Postal Service logged $900 million in net income on record-setting revenue of $72.8 billion for its 2006 fiscal year but high fuel and labor costs limited its overall financial success

Nov. 16, 2006

The U.S. Postal Service logged $900 million in net income on record-setting revenue of $72.8 billion for its 2006 fiscal year but high fuel and labor costs limited its overall financial success.

“We’re extremely sensitive to changing energy costs,” stated Glenn Walker, CFO & executive vp.

Fuel and transportation costs totaled approximately $1.7 billion in FY 2006. That was roughly $260 million more than anticipated, Walker said. Total overall expenses increased 4.9% over FY 2005.

Total mail volume increased in fiscal year 2006 by 1.4 billion pieces or 0.7%, with first class mail volume declining 0.5% from the previous fiscal year. Standard and priority mail shipments went up, boosting overall mail volume to 213 billion pieces.