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2000 Annual Report
- page 21 of 70
Overview
In this section we discuss our finances, including the successes
we had, the challenges we face, our plans for the future and the
risks that lie ahead. If we were a private company as opposed to
a government agency, your financial analysis of our results would
focus primarily on our bottom line, which this year is a loss of
$199 million. However, if you focus on this loss you will not get
an accurate picture of our results. When you examine our total picture, you will see that this was our most productive year in the past seven years. This achievement was no accident.
Management responded to significant financial challenges, lower
than expected revenue and soaring fuel costs by setting in motion
a plan that took the hard work of hundreds of thousands of our employees.
The result was record levels of productivity that averted what could
have been a much greater loss.
To understand just how difficult this achievement was, you should
remember that we did it in the context of our universal service
mandate, which means we deliver to everyone, everywhere and we do
not charge whenever we add a new delivery address. Every day we deliver
to over 5,000 new addresses in the delivery network, which is the
equivalent of adding a city the size of Chicago each year to our
delivery system. And we provide universal service without the flexibility
to change our rates quickly whenever our costs go up. For example,
in 2000, our transportation costs increased $275 million when the
price of fuel went up. While our competitors and other companies,
such as airlines, can quickly add a fuel surcharge to their prices
to cover their increased costs, we must wait until our next rate
case, which can take over a year, to recover our increased costs.
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Financial
Section
Contents
Financial
Q&A with the CFO
Letter
Automation Success
Story
Management
Discussion
and Analysis
Outlook
Operations
AFSM
100 Flat Sorter
Capital
Using
Technology to
Deliver
Financing
Understanding
our
Financial
Condition
Other
Issues
How
to Read Our
Financial Statements
Statements
of Operations
Balance
Sheets
Statements
of Changes in
Net Capital Deficiency
Statements
of Cash Flows
Notes
to the Financial
Statements
Report
of Independent
Auditors
Financial
History Summary
Mail
Revenue and Volume
Statistics
Employee
and Post Office
Statistics
Glossary
Leadership
of the Postal Service
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