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Our Annual Report
2000 Highlights
Letter from
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2000 Year
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Delivering
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2000
Annual Report - page 30 of 70
Volume
Based on the rates we requested being implemented in January 2001
and forecasted economic indicators being accurate, our projection
is that Standard Mail (A) will decline slightly, with First-Class
Mail and Priority experiencing only slight growth. We also expect
some growth in International Mail.
First-Class Mail
First-Class Mail had volume growth of 1.6% this year. We believe
that future volume growth in First-Class will continue to be affected
by movement by some large mailers to Standard Mail (A), as well
as by the increasing availability and affordability of electronic
alternatives to traditional mail.
Standard Mail (A)
Standard Mail (A), or advertising mail, grew by 5.1% in 2000. Mail
continues to shift away from the nonautomation presort categories
into automation presort as mailers take advantage of work-sharing
discounts. Growth in Standard Mail (A) volume, while still healthy,
is less than in the past, due primarily to increased competition
in the advertising market and the Internet.
Priority Mail
Priority Mail volume grew by 2.8%, relatively slow compared to recent
growth. The growth rate would have been 3-4% higher were it not
for the last rate change, which shifted 12- and 13-ounce mail from
Priority Mail to First-Class Mail. This class of mail is also in
the increasingly competitive expedited package market.
Standard Mail (B)
Growth in Standard Mail (B), primarily composed of parcel post,
reached 8.2% in 2000. This is much higher than the growth in 1999
and is more in line with expectations.
Periodicals
This year Periodicals volume grew 0.9%. This reversed declines in
the prior two years. We expect similar growth next year.
International Mail
International Mail volumes in 2000 grew 6.7%. International Priority
Airmail more than doubled from its 1999 level, and International
Express Mail grew by 7.5%.
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GROWTH IN REVENUE
AND VOLUME |
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Revenue
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Volume
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1998 |
1999
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2000
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1998 |
1999
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2000
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First-Class
Mail |
1.4% |
3.2%
|
1.7%
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0.8% |
1.5%
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1.6%
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Standard
Mail (A) |
6.4% |
5.4%
|
5.2%
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|
6.8% |
3.8%
|
5.1%
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Priority
Mail |
8.6% |
8.3%
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6.7%
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|
9.9% |
1.3%
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2.8%
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Standard
Mail (B) |
7.8% |
4.2%
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4.6%
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3.5% |
1.9%
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8.2%
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Periodical
Mail |
0.2% |
2.1%
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2.6%
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-0.9% |
-0.4%
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0.9%
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International
Mail |
-0.9% |
1.8%
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1.8%
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-6.2% |
9.2%
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6.7%
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