Correios projected financial balance, but losses exceeded US$ 6 billion

you Mail of to us It posted a loss of US$6.5 billion in the recently ended fiscal year. The company had forecast it would break even in the fiscal year ended September 30, with expectations of a first-year profit this year. The information comes through a report by CNN.

The results were disappointing as the company saw an increase in revenue earlier this year. Postmaster General Louis Dejoy attributed the loss to inflation, which increased the costs of its operations.

“We’re in the early stages of one of the biggest organizational transformations in the country,” he said. “We already provide the most stable, reliable and timely delivery to American businesses and homes.”

Revenue from shipping and packages, currently its largest segment of the business by revenue, rose 1% to $31.6 billion, even as volume fell 2%.

First-class mail generated 2% more revenue, reaching $24.5 billion despite a 6% decline in volume. According to the report, revenue from direct mail marketing decreased by $920 million, or 8%.

The Postal Service reported a net profit of $56 billion in the previous fiscal year, but a nearly $57 billion non-cash gain from the 2022 law offset the cost of health care for retirees.

Excluding this one-time accounting gain and other so-called “uncontrollable” costs and gains, the Postal Service’s “controllable loss” rose to $2.3 billion in the fiscal year just ended, compared with a controllable loss of $473 million. Previous financial year./With information from CNN