Mailers’ Technical Advisory Committee Meeting August 1, 2007
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® H. Glen Walker Chief Financial Officer & Executive Vice President FINANCIAL UPDATE Mailers’ Technical Advisory Committee Meeting August 1, 2007
description
MTAC. FINANCIAL UPDATE. Mailers’ Technical Advisory Committee Meeting August 1, 2007. H. Glen Walker Chief Financial Officer & Executive Vice President. SPLY Change. SPLY Change. Qtr 3 YTD. Qtr 3. First-Class. 23.6B. 73.4B. -1.3%. -1.3%. Standard. 24.6B. 78.3B. +1.8%. -0.9%. - PowerPoint PPT Presentation
Transcript of Mailers’ Technical Advisory Committee Meeting August 1, 2007
®
H. Glen WalkerChief Financial Officer &Executive Vice President
FINANCIAL UPDATE
Mailers’ Technical Advisory Committee Meeting
August 1, 2007
FINANCIAL UPDATE
+0.2%161.5BTotal All Mail
-0.3%879MPackage Svc.-2.4%696MPriority-1.3%42MExpress
-2.7%6.7BPeriodicals+1.8%78.3BStandard-1.3%73.4BFirst-Class
SPLYChange
Qtr 3YTD
-1.3%
+0.8%-2.8%-0.5%
-0.5%-0.9%-1.3%
51.4B
258M215M
14M
2.3B24.6B23.6B
Qtr 3SPLY
Change
Volume Performance
FINANCIAL UPDATE First-Class Mail Volume
2.1%
-1.3%
1.2%-0.1%
-1.3%-0.6%
0.3%
-4.0%
1.6%
-0.8%
-2.5%
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3FY 2005 FY 2006 FY 2007
% SPLY 8 Quarter Moving Average Growth Rates
FINANCIAL UPDATE Priority Mail Volume
2.5%
6.1%4.7%
0.7% 0.7%2.6%
-2.8%
-5.3%
1.4%
10.3%
7.5%
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3FY 2005 FY 2006 FY 2007
% SPLY 8 Quarter Moving Average Growth Rates
FINANCIAL UPDATE Express Mail Volume
4.0%5.7%
-3.3% -3.1%
0.6%1.3%
-0.5%-0.2%-0.9%
2.2%4.0%
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3FY 2005 FY 2006 FY 2007
% SPLY 8 Quarter Moving Average Growth Rates
FINANCIAL UPDATE Periodicals Volume
-3.3%
0.1%
-5.3%
-1.8%
0.9%
-0.7% -0.5%
-2.2%
-0.6%
0.3%0.2%
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3FY 2005 FY 2006 FY 2007
% SPLY 8 Quarter Moving Average Growth Rates
FINANCIAL UPDATE Standard Mail Volume
9.3%
4.1% 4.4%
0.5% 0.2%
4.9%4.6%2.7% 2.8% 1.2%
-0.9%
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3FY 2005 FY 2006 FY 2007
% SPLY 8 Quarter Moving Average Growth Rates
FINANCIAL UPDATE Package Services Volume
-1.4%
3.3% 3.5%
-0.9%
1.1%
3.3%0.8%
-2.7%-3.5%
3.8%
7.8%
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3FY 2005 FY 2006 FY 2007
% SPLY 8 Quarter Moving Average Growth Rates
FINANCIAL UPDATE
-4.1%-5.6%
-2.3%
-7.1%
-11.9%-14.0%
-12.0%
-10.0%
-8.0%
-6.0%
-4.0%
-2.0%
0.0%
2007Q1 2007Q2 April May June
Total First Class Flat Volume versus SPLY: Growth Rates
FINANCIAL UPDATE Total First Class June 2007 Volume versus SPLY:
Growth Rates
-9.4%
-11.9%-14.0%
-12.0%
-10.0%
-8.0%
-6.0%
-4.0%
-2.0%
0.0%
Parcels Flats
FINANCIAL UPDATE
4.2%
-0.5%
0.0%
-7.2%
-12.2%-14.0%-12.0%-10.0%-8.0%-6.0%-4.0%-2.0%0.0%2.0%4.0%6.0%
2007Q1 2007Q2 April May June
Total Standard Flat Volume versus SPLY: Growth Rates
FINANCIAL UPDATE Total Standard Weight per Piece: Growth Rates
-0.7%
0.8%
1.8%2.4%
1.6%2.1%
3.5%
-1.1%
-3.3%
1.4%
-4.0%
-3.0%
-2.0%
-1.0%
0.0%
1.0%
2.0%
3.0%
4.0%
2007Q1 2007Q2 April May June
Letters Flats
FINANCIAL UPDATE Total Standard June 2007 Volume versus SPLY: Growth
Rates0.8%
-12.2%-14.0%-12.0%-10.0%-8.0%-6.0%-4.0%-2.0%0.0%2.0%
Letters Flats
FINANCIAL UPDATE Total Standard Rate Changes R2006-1
Letters FlatsRegular 4.3% 22.9%Nonprofit Regular1.8% 36.4%ECR 3.9% 7.4%Nonprofit ECR -3.4% 14.7%
FINANCIAL UPDATE Total First-Class Rate Changes R2006-1
Letters 5.2%Flats 17.2%Parcels 21.1%
FINANCIAL UPDATE
Total All Mail
Package Svc.PriorityExpress
PeriodicalsStandardFirst-Class
50.4B
283M192M
12M
2.1B24.9B22.5B
Qtr 4
-2.7%
-3.9%-10.1%-12.4%
-4.0%-2.8%-2.8%
SPLYChange
Quarter 4 Volume Outlook
FINANCIAL UPDATE Total Mail Volume per Workhour
150146145142137133129128123121119116116
0
20
40
60
80
100
120
140
160
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007*FY
* YTD June22 Million New Delivery Points Added During This Period
FINANCIAL UPDATE Total Workhours – March 31 thru July 20
-1200-1000
-800
-600
-400
-200
0
Wk27 Wk28 Wk29 Wk30 Wk31 Wk32 Wk33 Wk34 Wk35 Wk36 Wk37 Wk38 Wk39 Wk40 Wk41 Wk42
Thou
sand
s
SPLY Variance
FINANCIAL UPDATE Total Overtime – March 31 thru July 20
-700
-600
-500
-400
-300
-200
-100
0
Wk27 Wk28 Wk29 Wk30 Wk31 Wk32 Wk33 Wk34 Wk35 Wk36 Wk37 Wk38 Wk39 Wk40 Wk41 Wk42
Thou
sand
s
SPLY Variance
FINANCIAL UPDATE Total Factor Productivity
Qtr 3 YTD Qtr 3
+1.4%Total Factor Productivity+1.8%
-1.2%Resources-2.1%
+0.3%Workload-0.2%
Qtr 3 YTD SPLY
+0.5%
+0.6%
+1.2%
FINANCIAL UPDATE FY 2007 Debt through Quarter 3 YTD
Beginning Debt $2.1Payment of Debt -$2.1 Ending Debt $0.0
($ Billions)
®
H. Glen WalkerChief Financial Officer &Executive Vice President
FINANCIAL UPDATEMailers’ Technical Advisory Committee
Meeting
August 1, 2007
