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USPS still hermoragging money, $2.2B last quarter

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Lifer
NEW YORK (CNNMoney) -- The U.S. Postal Service continues to hemorrhage money, with a loss of $2.2 billion in the most recent quarter.

The national mail service said Tuesday that it expects to have a cash shortfall and reach its statutory borrowing limit by the time its fiscal year ends in September. That means the agency could be forced to default on some of its payments to the federal government.

Patrick Donahoe, the Postmaster General, said the service is still seeking changes to federal laws that would allow it to change its business model and potentially save enough money to avoid a default.

"The Postal Service may return to financial stability only through significant changes to the laws that limit flexibility and impose undue financial burdens," Donahoe said in a statement.

At issue is a 2006 law requiring the service to pay between $5.4 and $5.8 billion into its prepaid retiree health benefits each year. In addition, the agency is seeking Congressional approval to eliminate Saturday mail service.

The postal service has estimated that moving to five day service could save $3.1 billion. But the Postal Regulatory Commission, which oversees the agency, issued an advisory in March that put the savings at a much more modest $1.7 billion.

While the Postal Service is not strictly a government agency, it is not exactly a private business either.

The service funds its operations through the sale of postage, products and services. But it does receive some taxpayer support and is only required to make enough money to break even.

The service has been struggling with a prolonged slump in mail volume as email and other electronic forms of communication have supplanted 'snail mail,' as the practice of sending letters is now known.

In addition, the service has been hit hard by the weak economy as businesses cut back on direct mail marketing, traditionally a big source of revenue for USPS.

"Sluggish economic growth and diversion of First-Class Mail to electronic alternatives continue to cause record losses," said Joseph Corbett, the chief financial officer at USPS.

That's despite ongoing cost cutting measures, including a reduction of over 130,000 full-time workers over the last three years, he added.
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Meanwhile, the recent spike in gas prices could make the situation even worse.

The service said it expects to save up to $1.6 billion this fiscal year as a result of its efforts to reduce expenses and reorganize its operations. But the benefit of those measures "may be offset by rising fuel prices," the service said.

In its fiscal second quarter, which ended in March, the Postal Service said it lost $2.2 billion, up from $1.3 billion in the same period in 2010.

Operating revenue dropped 2.8% to $16.2 billion in the quarter.

Total mail volume fell 35 in the quarter to 41 billion pieces from 42.3 billion in the same period last year. To top of page
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those pesky unsustainable pensions again. when will we learn?
 
They should deliver mail twice a week, just split addresses into 3 groups
1:Monday, Thursday
2:Tuesday, Friday
3:Wednesday, Saturday
Waiting for snail mail a couple more days is not going to make or break anyone.
This way they can cut 2/3 of the couriers.
Addresses that want to get mail delivery more frequently would be able to get it for an additional surcharge.
 
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That's just sick, and reminds me of when we looked at Communist Russia, and knew their days were lost.

Government, totally out of control.

-John
 
Lets just get this straight...

Your Mail Man is some super human that gets some sort of super human pay. Because he is super human.

-John
 
Why we are still discussing 5 days and not just done it already is beyond me. Nobody needs mail on Saturday, ask the Canadians they haven't had it for years (ever?). They seem to do fine.
 
Pensions are bankrupting everything. It's a socialist institution.

GM, Federal, city, and state governments, educational systems, police and firefighter programs (including the ones in my city) are all being brought down by pension plans.

Workers should be taught to take money out of their paycheck to save and invest and not to rely on some program that is not even certain to exist when they retire. A company or organization cannot predict it's revenue/profit 30-40 years from now.
 
Doppel said:
Why we are still discussing 5 days and not just done it already is beyond me. Nobody needs mail on Saturday, ask the Canadians they haven't had it for years (ever?). They seem to do fine.
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Because it is not 5 days, or 4 days, or 3 days...

It's a ridiculously expensive Government program, that gives its employees ridiculously expensive Government pensions.

3 - 2 - 1 days, doesn't change anything.

-John
 
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JMapleton said:
Pensions are bankrupting everything. It's a socialist institution.

GM, Federal, city, and state governments, educational systems, police and firefighter programs (including the ones in my city) are all being brought down by pension plans.

Workers should be taught to take money out of their paycheck to save and invest and not to rely on some program that is not even certain to exist when they retire. A company or organization cannot predict it's revenue/profit 30-40 years from now.
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Good post... reminds me of my Social Security deduction. 😉

But in the case of these Postal Employees, they fully expect to get their Billions.

-John
 
JMapleton said:
Pensions are bankrupting everything. It's a socialist institution.

GM, Federal, city, and state governments, educational systems, police and firefighter programs (including the ones in my city) are all being brought down by pension plans.

Workers should be taught to take money out of their paycheck to save and invest and not to rely on some program that is not even certain to exist when they retire. A company or organization cannot predict it's revenue/profit 30-40 years from now.
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Its terrifying. It's being corrected now, but this will be a long-term issue for many years to come. Of course, it will have to pried from the cold dead hands of pension holders. S**t, I wouldn't want to give it up either.
 
Well, guess what.

If Government can just "immenent domain" land, then they can also tell Post Office employees to fuck off, and their pensions.

-John
 
I would love for you to show how almost 80mm people work for the government. Do it.

As far as your trash, Zorkrist, of posting almost 10 times in a single thread, you have provided nothing but fascist talking points. Your neffing is disgusting.

The single biggest problem is that the PO delivers a service at below-market pricing. Stamp costs are limited by inflation.

There's aslo been a huge amount of modernization to reduce labor costs, these are long-term investments.
 
Zorkorist said:
Something like 24% of the people in the US work for the Government.

-John
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There is no way that statistic is true.

It is more like 11% when you combine fed, state, local.

And the 11% is the working population... not the entire population.

It is also the lowest number of govt employees per capita in ~65 years.
 
LegendKiller said:
The single biggest problem is that the PO delivers a service at below-market pricing.
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Not really. We use UPS, USPS, and FedEx, and depending on the size weight and dimensions pricing is pretty similar. Somethings are cheaper by UPS, some are cheaper by USPS, some by FedEx. When you also consider that FedEx, and UPS offer actual tracking, and MUCH better customer service there's nothing special about the PO's pricing.
 
Zorkorist said:
Once you add in the folks that sell to the Government, then it's like 24%.

-John
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You douchenozzle, they would sell to somebody else if it wasn't the government providing the service.

Do you want to count the people who sell to them? Or the people who sell to the ones who sell to the sellers to the government? Or how about the folks to sell to the sellers who sell to the sellers of the sellers to the sellers to the government?

In one form or another, to some amount, nearly every single person on this country is employed by somebody who provides a service to the Nth level of a provider of a service to the government.


Are you fucking braindead?
 
Acanthus said:
How is that even an ethical argument?

You're including the people that make paper and white out?

Big bad staples and all of their govt employees!
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I'm only including people that make their money off the US Government.

Not people that make or sell any services, mind you.

Just people that make money by dealing with the Government.

-John
 
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