USPS Losses Continue, Default on Federal Payments LoomingAugust 5, 2011
- First-Class Mail revenue of $7.8 billion, on volume of 17.7 billion pieces;
- Standard Mail revenue of $4.2 billion, on volume of 19.8 billion pieces;
- Periodicals revenue of $454 million, on volume of 1.8 billion pieces; and
- Package Services revenue of $354 million, on volume of 143 million pieces.
Shipping Services revenue of $2.2 billion represents an increase of $150 million or 7.3 percent compared to the same period a year ago. Shipping Services volume of 359 million pieces represented a 5.9 percent increase compared to the same period a year earlier.
Electronic diversion continues to cause reductions in First-Class Mail. For the third quarter, single-piece First-Class letter revenue declined $259 million or 8.7 percent, while Periodicals revenue decreased 3.0 percent compared to the same period a year earlier.
“Since the passage of the Postal Accountability and Enhancement Act of 2006 (PAEA), the Postal Service has contributed more than $37 billion to a trust fund for future retiree health benefits,” noted Joseph Corbett, CFO and executive vice president. “We are experiencing a severe cash crisis and are unable to continue to maintain the aggressive prepayment schedule that was mandated in the PAEA. Without changes in the law, the Postal Service will be unable to make the $5.5 billion mandated prepayment due in September.”
The Postal Service is aggressively reducing expenses, including organizational redesign initiatives. Work hours were reduced by 9.2 million hours or 3.1 percent in the third quarter compared to the same period a year ago. During the first nine months of 2011, 2.8 percent fewer work hours were used compared to 2010. The third quarter saw the voluntary retirement of more than 1,850 administrative employees as part of the current restructuring initiative.
While the Postal Service continues to reduce expenses, it has maintained excellent service performance during the third quarter, with the national score for overnight Single-Piece First-Class Mail arriving on time 96.6 percent of the time.
Copies of the third quarter financial results will be available on the Postal Service website.
About the U.S. Postal Service
A self-supporting government enterprise, the U.S. Postal Service is the only delivery service that reaches every address in the nation, 150 million residences, businesses and Post Office Boxes. The Postal Service receives no tax dollars for operating expenses, and relies on the sale of postage, products and services to fund its operations. We’re everywhere so you can be anywhere: www.uspseverywhere.com. With 32,000 retail locations and the most frequently visited website in the federal government, usps.com, the Postal Service has annual revenue of more than $67 billion and delivers nearly 40 percent of the world’s mail. If it were a private sector company, the U.S. Postal Service would rank 29th in the 2010 Fortune 500. Black Enterprise and Hispanic Business magazines ranked the Postal Service as a leader in workforce diversity. The Postal Service has been named the Most Trusted Government Agency six consecutive years and the sixth Most Trusted Business in the nation by the Ponemon Institute.