US Postal Service 2007 Annual Report Download - page 22

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22 | 2007 Annual Report United States Postal Service
Revenue and Volume
Total revenue for 2007 was $74,973 million, an increase of $2,156 million
or 3.0% from last year. The first quarter was affected favorably from the
carryover effect of the January 2006 rate increase and a portion of the
third quarter and all of the fourth quarter benefited from the May 2007 rate
increase. Mail volume for 2007 was 212.2 billion pieces, a decrease of 904
million pieces or 0.4%. Although the volume decrease was modest, the mix
of services provided was less favorable than in previous years. Without the
rate increase this level of volume would have resulted in lower revenue due
to the change in service mix.
Revenue 2007 2006 2005
(Dollars in millions)
First-Class Mail $ 37,564 $ 37,039 $ 36,062
Standard Mail 20,779 19,877 18,953
Priority Mail 5,233 5,042 4,634
Package Services 2,306 2,259 2,201
Periodicals 2,188 2,215 2,161
Express Mail 951 918 872
International 2,036 1,794 1,765
Other* 3,916 3,673 3,345
Total Revenue $ 74,973 $ 72,817 $ 69,993
* Special services revenue, other income and investment income included in “Other” category.
2007 REVENUE
Mail Volume By Type 2007 2006 2005
(Pieces in millions)
First-Class Mail 95,898 97,617 98,071
Standard Mail 103,516 102,460 100,942
Priority Mail 897 924 887
Package Services 1,163 1,175 1,166
Periodicals 8,796 9,023 9,070
Express Mail 55 56 55
International 833 793 852
Other* 1,076 1,090 700
Total Mail Volume by Type 212,234 213,138 211,743
* Free mail for the blind and Mailgrams included in the “Other” category.
2007 MAIL VOLUME
While Standard Mail volume exceeds First-Class Mail volume, First-Class
Mail remains, by far, the largest revenue generator, as illustrated by the two
previous charts.
First-Class Mail revenue increased $525 million or 1.4%, while volume
decreased by 1.7 billion pieces, or 1.8% in 2007. The revenue increase was
mainly a result of the May rate change. An increase of 530 million pieces
in workshare First-Class letters and cards partially offset the continuing
decline in single-piece volume, which was down more than 2 billion pieces,
or 4.7%. The long-term continued decline in single-piece volume reflects
the impact of electronic diversion as businesses, nonprofit organizations,
governments, and house holds continue to move their correspondence
and transactions to electronic alternatives, such as Internet bill payment,
automatic deduction, and direct deposit. While most Americans still view
mail as more secure and more private than Internet-related activities,
consumers of all demographic groups are becoming increasingly comfort-
able with electronic alternatives.
Financial Section Part II
Other
6%
First-Class Mail
45%
Standard Mail
49%
First-Class Mail
50%
All Other
12%
Standard Mail
28%
Priority Mail
7%
Package Services
3%