USPS lost $1.1 billion in third quarter
WASHINGTON, DC — The U.S. Postal Service ended its third fiscal year quarter (April 1 – June 30) with a greater-than-expected net loss of $1.1 billion. The national economic slowdown reduced mail volume at an accelerated pace and continued inflation in fuel prices produced rapidly escalating transportation costs. Despite these financial challenges, Postal Service employees delivered record-breaking service performance in the third quarter.
For the third quarter ending June 30:
* Operating revenue was $17.9 billion, a decrease of $437 million, or 2.4 percent, compared to the same period last year.
* Operating expenses totaled $19.0 billion, an increase of only $178 million, or 1.0 percent, from the third quarter last year, despite substantial increases in fuel prices.
* Expenses include $1.4 billion of the $5.6 billion payment to the Postal Service Retiree Health Benefits Fund that the Postal Service is required to make by Sept. 30, 2008, under the Postal Accountability and Enhancement Act of 2006.
* Mail volume was 48.5 billion pieces, a 5.5 percent drop from the same period last year. First-Class Mail and Standard Mail volume were each down 5.5 percent in the third quarter, reflecting the challenging economic environment.
The fiscal 2008 year-to-date net loss totals $1.13 billion. The Postal Service had essentially broken even in the first half of the fiscal year. With no economic recovery in sight, the Postal Service expects an end-of-year, economy-driven net loss.
“When the economy does rebound, mail volume may not return to previous levels,” said Postmaster General John Potter. “This requires that we significantly accelerate process improvements and the realignment of resources in order to achieve long-term financial success. Failure to do so will threaten our ability to meet our mission of providing universal service at affordable prices.”
August 6th, 2008 18:23
If the Top dog and his crew had not gotten a 39% raise we would’nt have have that lost
August 6th, 2008 19:41
ignorant, yet youre a mule so we dont expect you to understand the gravity of the losses and our continued pay checks.
August 6th, 2008 20:30
STOP SATURDAY DELIVERY, God what does it take !
Anyone who says the postal service must delivery on saturday is a money hungry union worker looking for easy overtime.
August 6th, 2008 21:54
Uh,Herman–the biggest advocates for Sat. delivery are the bulk and business mailers who don’t want to miss out on one day which could result in a sale. That union which you are so quick to blame is the same one which guarantees your nice wage/benefit package. Thanks to them, you won’t have to go back to cleaning out chicken coops! Take just a moment for a reality check, please.
August 7th, 2008 10:37
If someone showed me they care about the customer, the operation, and those working for them then I be concerned !
But I have worked too many places prior to coming to USPS were (2) sets of books were very common!
So, don’t blow a smoke screen as if we car (we do to a degree) but honesty must prevail first!
I have had 18 years deception lie after lie presented to me to date prior to USPS.
Then a onslaught of 21+ after entering the USPS.
Now, what do you ‘expect me to do’ wish your reporting with open arms? sorry I don’t enter lions cages, not knowing were the lion may be??
A Worker………
August 7th, 2008 13:13
I agree, stop Saturday delivery. Ignorance would be the only thing I can see preventing it.
August 7th, 2008 13:22
Herman – Saturday deliveries are usually done by part-time or temporary workers making substantially less than full time drivers or city carriers. There is no overtime involved. Further, these workers get no health care or other benefits from the USPS.
Most likely if Saturday delivery were suspended; there would be more people against it than for it. People are used to getting their mail 6 days a week. With many folks getting checks, cards, and packages delivered, I doubt very much that this would be a popular plan.
What the USPS could do is advertise more re their priority package delivery and cater more the the larger companies that do mail order and internet sales. There is competition BUT USPS has far better rates than the other carriers AND they do deliver on Saturdays without additional surcharges.
August 7th, 2008 14:22
what the heck? it’s only money.
August 7th, 2008 17:03
This is but one more proof of a slowing economy. The Saturday Delivery should be elinimnated. The resulting Labor Savings would be significant enough to carry the PS forward in face of their many challenges. Time to really think out of the Box. The PS does not owe every person in America a job. There are enough Ready Retirement Employes to do the numbers painlessly. Wake up Unions before it is too late for you! The coice is simple!!!
August 7th, 2008 18:09
did anyone read- includes 1.4 billion to fund retiree obligations, in essence actually made a profit !!
August 7th, 2008 22:57
Whats the shocker, every day I read the newspaper to see yet another sector impacted by this economy. My clerks and carriers work long hard hours to deliver the hard copy that makes this country great!
How many times have you read ” Today a real estate agent found an Elderly Homebound Customer on the floor “. Do not think of the Mail Carrier as just another Delivery Person, many are involved in the community’s they deliver in.
One of my carriers goes to her patrons house’s on her off day to run errands and has even cut there lawns!
When was the last time your Cable Guy did that?
I do not want to sound negative but Carriers are a very important part of this dream we all call AMERICA, dont ever forget that.
August 8th, 2008 19:47
I agree with doing whatever it takes to reduce the defecit and increase revenue, however doing away with Saturday delivery alone will not help as much as sitting down with the unions and redo the contract in so far as the no lay off no reduction in force agreement. You can do without Saturday delivery but what are you going to do with all those employees who are garanteed 40 hours per week even after you eliminate part times and Temporary employees? Someone needs to make the hard choices.
August 8th, 2008 23:28
Ok ! Keep Saturday delivery.
And delivery Sunday too. What the heck.
By the way have you all watched UPS and Fedex stock lately.
September 2nd, 2008 15:57
Are clerks being excessed to letter carriers and if they are do they come in as full time letters carriers?