usps financial update mailer’s technical advisory committee meeting may 19, 2010 joe corbett
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USPS Financial Update Mailer’s Technical Advisory Committee Meeting May 19, 2010 Joe Corbett Chief Financial Officer & Executive Vice President. Crude Oil. Dow Jones. Economy. Financial Results. Three Months Ended March 31, 2010. ($ Chg). (% Chg). 2010. 2009. ($ in Billions). - PowerPoint PPT PresentationTRANSCRIPT
®
USPS Financial Update
Mailer’s Technical Advisory Committee Meeting
May 19, 2010
Joe CorbettChief Financial Officer & Executive Vice President
® EconomyEconomy
Crude OilDow Jones
3
Financial ResultsFinancial Results
($ in Billions)
0.3(1.9)($1.6) Net Loss
(0.6) 17.0 16.4Expense
(0.2)16.9$16.7Revenue (1)
($ Chg)20092010
(3.8)
(1.4)
(% Chg)
Three Months Ended March 31, 2010
0.1 1.8 1.9Retiree Health Bfts 4.5
-1.543.842.3Volume (Pieces) (2) -3.3%
(1) Includes $180 Million in Census Revenue for Qtr II 2010 period.
(2) Includes 486 Million pieces in Census Volume for Qtr II 2010 period.
4
-0.5%
-5.5%
-9.3%
-14.3%
2.2%
-12.7%
-14.7%
-6.3%
-3.3%-3.1%-1.3%
-2.3%-3.3%
-8.9%
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
Total Mail Volume
8 Quarter Moving Average Growth Rates% SPLY
FY 2007 FY 2008 FY 2009 FY 2010
5
-5.0%
-7.2% -6.6%-7.7%
-9.9%-8.2%
-2.7%-3.4%
-1.4%-1.2%-2.5%
-0.4%
-9.7%
-6.6%
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
First-Class Mail Volume
8 Quarter Moving Average Growth Rates% SPLY
FY 2007 FY 2008 FY 2009 FY 2010
6
-2.7%
-10.9%
4.9%
0.6%
-18.8%-19.5%-17.7%
-5.6%-3.0%
-0.9%
1.3%
-1.4%
-6.1%
-11.0%
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
Standard Mail Volume
8 Quarter Moving Average Growth Rates% SPLY
FY 2007 FY 2008 FY 2009 FY 2010
7
1. Reduce Workhours • Reduction of 22,000 employees Oct/Nov• Goal – approx. 90,000 workhours
2. Day-to-Day Management● Efficiency – Productivity and Overtime● Service Performance – All Categories
3. Variance & Staffing Modeling● Mail Processing● Customer Service● People Repositioning
4. Implement National Programsa) Network Distribution Center Accelerated b) Area Mail Processing Implementation c) Route Adjustment Processd) Flat Sorter Sequencing Implementatione) All Areas – Costs Down Across the Postal Service
Focus on Cost Focus on Cost
8
1. Reduce Workhours• Reduction of 22,000 employees Oct/Nov • Goal – approx. 90,000 workhours
2.Day-to-Day Management• Efficiency – Productivity and Overtime• Service Performance – All Categories
3. Variance & Staffing Modeling● Mail Processing● Customer Service● People Repositioning
4. Implement National Programsa) Network Distribution Center Accelerated b) Area Mail Processing Implementation c) Route Adjustment Processd) Flat Sorter Sequencing Implementatione) All Areas – Costs Down Across the Postal Service
Focus on Cost Focus on Cost
9
1. Reduce Workhours• Reduction of 22,000 employees Oct/Nov • Goal – approx. 90,000 workhours
2. Day-to-Day Management● Efficiency – Productivity and Overtime● Service Performance – All Categories
3. Variance & Staffing Modeling• Mail Processing• Customer Service• People Repositioning
4. Implement National Programsa) Network Distribution Center Accelerated b) Area Mail Processing Implementation c) Route Adjustment Processd) Flat Sorter Sequencing Implementatione) All Areas – Costs Down Across the Postal Service
Focus on Cost Focus on Cost
10
1. Reduce Workhours• Reduction of 22,000 employees Oct/Nov• Goal – approx. 90,000 workhours
2. Day-to-Day Management● Efficiency – Productivity and Overtime● Service Performance – All Categories
3. Variance & Staffing Modeling● Mail Processing● Customer Service● People Repositioning
4. Implement National Programsa) Network Distribution Center Accelerated b) Area Mail Processing Implementationc) Route Adjustment Processd) Flat Sorter Sequencing Implementatione) All Areas – Costs Down Across the Postal
Service
Focus on Cost Focus on Cost
11
-6.3%
-12.7%
-11.6%
-4.8%-4.2%
-5.9%
-7.5%
-15.0%
-10.0%
-5.0%
0.0%Volume
MailProcessing
CustomerServices
CityDelivery
RuralDelivery Other Total
(% S
PL
Y)WorkhoursWorkhours
88.1B88.1B 117M117M 82M82M 206M206M 87M87M 106M106M 598M598M
49M Workhours Below SPLY
Six Months Ended March 31, 2010
12
Financial ResultsFinancial Results
($ in Billions)
0.4(2.3)($1.9) Net Loss
(1.4) 34.6 33.2Expense
(0.9)36.0$35.1Revenue (1)
($ Chg)20092010
(4.5)
(2.7)
(% Chg)
Six Months Ended March 31, 2010
0.1 3.7 3.8 4.5
-5.994.0 88.1Volume (Pieces) (2) -6.3%
(1) Includes $180 Million in Census Revenue for Qtr II YTD 2010 period.
(2) Includes 486 Million pieces in Census Volume for Qtr II YTD 2010 period.
Retiree Health Bfts
®
USPS Financial Update
Mailer’s Technical Advisory Committee Meeting
May 19, 2010
Joe CorbettChief Financial Officer & Executive Vice President