Mail volume increased by 5.1% above May 2004

MAY FINANCIAL RESULTS RELEASED
Mail volume increased by 5.1% above May 2004

The Postal Service reported a mail volume increase of 800 million pieces or 5.1% over May last year, generating a 4.7% increase in revenue for the month. Despite this, a net loss of $198 million was posted for the month, as expenses increased 6.7%. May this year had one more weekday with one less Saturday than May of last year. While the number of delivery days remained the same, weekdays generate more volume and revenue.

Year to date (YTD), covering the period of October 1, 2004 through May 31, 2005, the Postal Service has posted a net income of $1.8 billion. This is $1.4 billion over plan and approximately $1.1 billion under same period last year (SPLY).

Revenue has totaled $47.4 billion YTD. This is an increase of $1.1 billion over plan or 2.6%, and is $700 million over SPLY. While expenses are $221 million under budget YTD, they are $1.8 billion over SPLY.

Total YTD mail volume of 142.8 billion pieces is 3.0% over SPLY. Standard Mail YTD has increased by 6.1% and Priority Mail is up 4.2%. First-Class volume is up two-tenths of a percent.

This performance is consistent with our recent rate case filing. Full results are posted at Financial & Operating Statements on usps.com.