US Postal Service 2006 Annual Report Download - page 27

2006 Annual Report United States Postal Service | 25
Item 5 – Market for Registrant’s Common
Equity and Related Stockholder Matters
Not applicable to the United States Postal Service. As an “independent
establishment of the executive branch of the United States government,”
we do not issue stock or related securities.
Item 6 – Selected Financial Information
See the Financial History Summary and Selected Quarterly Financial Data
sections of this report.
Cautionary Statements
Statements contained in Management’s Discussion and Analysis represent
our best estimate of the trends we know about, the trends we anticipate
and the trends we think are relevant to our future operations. However,
actual results may be different from our estimates. Certain forward-look-
ing statements are included in this report and use such words as “may,”
“will,” “expect,” “believe,” “plan” or other similar terminology. These
statements reflect our current expectations regarding future events and
operating performance as of the date of this report. These forward-looking
statements involve a number of risks and uncertainties.
The following are some of the factors that could cause actual results to
differ materially from those expressed in, or underlying, our forward-
looking statements: effectiveness of operating initiatives; success
in advertising and promotional efforts; changes in national and local
business and economic conditions, including their impact on consumer
and business confidence; fluctuations in currency exchange and interest
rates; labor and other operating costs; oil, fuel and other transportation
costs; the effects of war and terrorist activities; competition, including
pricing and marketing initiatives and new product offerings by our
competitors; consumer preferences or perceptions concerning our product
offerings; spending patterns and demographic trends; availability of
qualified personnel; severe weather conditions; effects of legal claims;
cost and deployment of capital; changes in laws and regulations; and
changes in applicable accounting policies and practices. The foregoing list
of important factors is not all-inclusive. We have no obligation to publicly
update or revise any forward-looking statements, whether as a result of
new information, future events or otherwise.
Item 7 – Management’s Discussion
and Analysis of Financial Condition and
Results of Operations
Volume and Revenue
Revenue for 2006 was $72,817 million, an increase of $2,824 million
over last year. This was primarily due to an increase in average postage
rates of 5.4% across all rate classifications implemented on January 8,
2006. Total volume in 2006 of 213.1 billion pieces was 1.4 billion pieces
or 0.7% above last year. Standard Mail had the largest volume increase
of all postal products with 1.5 billion additional pieces or 1.5% over 2005.
Total volume declined in the first quarter by 1.5% compared to the first
quarter of 2005, but grew an average of 2.3% in quarters two and three
when compared to the same period last year. In the fourth quarter, volume
declined 0.1% compared to quarter four of 2005, or 64 million pieces as a
result of the slowing economy.
Mail Volume by Type 2006 2005 2004
(Pieces in millions)
Standard Mail 102,460 100,942 95,564
First-Class Mail 97,617 98,071 97,926
Periodicals 9,023 9,070 9,135
Package Services 1,175 1,166 1,132
Priority Mail 924 887 849
Express Mail 56 55 54
International 793 852 844
Other * 1,090 700 602
Total Mail Volume by Type 213,138 211,743 206,106
* Postal Service volume, free matter for the blind and Mailgrams included in the “Other” category.
Financial Section Part II