Postal Service Reports $1.1 Billion 3Q Loss
The U.S. Postal Service Wednesday reported a third-quarter loss of $1.1 billion, citing the ongoing U.S. economic slowdown.
“The national economic slowdown reduced mail volume at an accelerated pace and continued inflation in fuel prices produced rapidly escalating transportation costs,” USPS said in a statement.
The post office said its employees delivered record-breaking service performance in the third fiscal quarter, which ended June 30.
“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.”
For the third quarter:
• Operating revenue fell 2.4% to $17.9 billion, from a year ago.
• Operating expenses rose 1% to $19 billion, 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.
• Mail volume was 48.5 billion pieces, down 5.5% from the same period last year. First-Class Mail and Standard Mail volume were each down 5.5% in the quarter.
•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 said it expects an end-of-year net loss.
