U.S. POSTAL SERVICE POSTS $363 MILLION IN NET INCOME

   The U.S. Postal Service delivered its fifth straight fiscal year of net
income in fiscal 1999.
   The USPS reported $363 million in income on $63 billion in revenue, at the Postal Service Board of Governors meeting Tuesday.
   Postal expenses were reduced by more than $1 billion in the fiscal year, and a productivity increase of 2.3 percent during the fourth quarter of fiscal 1999 marked the largest improvement in two years, and second-largest in more than five years.
   "This outstanding performance allowed us to make good on our commitment not to increase rates until, at least, 2001, giving mailers a total dividend of well over $2 billion," , said M. Richard Porras, chief
financial officer and executive vice president.
   A decision to delay a planned postage increase until January, which
reduced income by $800 million. A $100-million increase in employee health benefits and Y2K costs of $300 million also affected the USPS’s income, Porras said.
   Fiscal 2000 plans include new initiatives in e-commerce, a renewed focus on package business and a restructured sales force," he said.