Investopedia
By Donna Fuscaldo | May 14, 2018 — 2:12 PM EDT
Share:
Add To Watchlist
AMZN
Amazon.com Inc
1,574.37
-0.47%
View Watchlist
President Donald Trump may be blaming the losses at the U.S. Postal Service on Amazon.com Inc. (AMZN), but the government-run mail delivery system sees another reason for the $1.3 billion in losses in the second fiscal quarter alone: it’s bosses policies.
According to the USPS’s fiscal second-quarter earnings report, which it issued late last week, it blamed its losses on what it called an “inflexible” government policy as well as inflation and a decline in demand for first-class mail. It did not cite any of its delivery deals, including its arrangement with Amazon for any of its woes. (See also: Trump Reportedly Wants to ‘Go After’ Amazon.)
“Despite growth in our package business, our financial results reflect systemic trends in the marketplace and the effects of an inflexible, legislatively mandated business model that limits our ability to generate sufficient revenue and imposes costs upon us that we cannot afford,” said Postmaster General and CEO Megan J. Brennan in the press release. “America needs a financially strong Postal Service that can invest in its future and can continue to fulfill the needs of American businesses and consumers. With continued aggressive management and greater legal authority to respond to changes in our marketplace and to control our costs, the Postal Service can return to financial sustainability.” (See also: Trump Campaign Spent $150K+ on Amazon: CBS.)
USPS Had Wider Net Loss
For the three months ended March 31, the USPS reported a net loss of $562 million, which was wider than the loss it had in the year-ago fiscal second quarter. The so-called controllable loss, which excludes items that aren’t recurring or are out of the control of the management, was $656 million. In the year-ago period, it had a profit of $12 million. Revenue during the quarter increased 1.4% to $17.40 billion. The post office saw a 9.5% growth in shipping and packaging sales and a 15% jump in international revenue. That helped offset a decline in first-class mail and marketing mail.
Trumping Trump?
The commentary out of the USPS flies in the face of comments Trump has made about Amazon last month. In a series of tweets, he pondered if the government could go after the Seattle-based e-commerce giant on anti-competitive grounds and argued the USPS was losing money because of its partnership with Amazon despite several analysts who have said Amazon actually helps its business. Trump has called for a review of the USPS partnerships as a result of his ratcheted-up attack on Amazon.
Compare Popular Online Brokers
Provider
Name
Description
Advertiser Disclosure
Related Articles
Trading
Charting Amazon Volatility Caused by Trump Tweets
Amazon is known as a momentum stock, with a P/E ratio of 228.79, but the stock lost its mojo last week.
Investing
The 3 Best Shipping Services to Use This Holiday Season (UPS, FDX)
Look at the strengths, weaknesses and comparative costs of the three best shipping companies: the U.S. Postal Service, UPS and FedEx.
Investing
Trump Campaign Spent $150K+ on Amazon: CBS
Trump is attacking Amazon, but a new report says his campaign spent more than $150,000 there.
Personal Finance
Why Amazon Needs to Dump UPS and Fedex (AMZN, FDX, UPS)
Amazon is too dependent on third-party shipping companies and must grow their delivery options to survive.
Investing
Trump Tweet Could Boost UPS, FedEx: Bernstein
Criticism of Amazon, USPS may provide significant upside for traditional delivery companies.
Investing
6 Manufacturers Vie for $6.3 Billion USPS Contract
The U.S. Postal Service has narrowed the list of contenders to replace its aging delivery truck fleet from a field of 15 vehicle manufacturers down to just six. Those companies now have about ...
Managing Wealth
Is Amazon Too Diversified?
Amazon recently posted an unexpectedly large profit. But is the company too diversified for its own good?
Investing
Amazon Benefits From Keeping Numbers Under Wraps
Amazon had teased with huge figures before revealing Prime revenue, but its habit of not sharing exact numbers is good for the stock.
Investing
Is Amazon a Prime Pick for Your Portfolio?
Eyeing Amazon? Thanks to innovation and diversification, it has high odds of being a long-term winner. Here's why.
Insights
7 Worst Products Amazon Ever Had (AMZN)
Amazon's Jeff Bezos believes that great successes are built on big failures. Amazon has plenty of failures, including some costing more than $100 million.
STOCKS:
AMZN
Trending
The Dummies' Guide To The Iran Nuclear Deal
What You Should Know About Net Neutrality
A Stock Sell-Off Vocabulary Guide
Understanding Interest Rates, Inflation And Bonds
Everything You Need To Know About Earnings
Work With Investopedia
About Us Advertise With Us Contact Us Careers
© 2018, Investopedia, LLC. Feedback All Rights Reserved Terms Of Use Privacy Policy
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment