U.S. Postal Service Losses Mount, Warns of Potential for Defaults

Mailing Services results include:

• First-Class Mail revenue of $8.8 billion, on volume of 20 billion pieces;

• Standard Mail revenue of $5 billion, on volume of 23.8 billion pieces;

• Periodicals revenue of $480 million, on volume of 1.8 billion pieces; and

• Package Services revenue of $431 million, on volume of 186 million pieces.

Shipping Services revenue of $2.6 billion increased 1.7 percent or $42 million compared to the same period a year ago. Shipping Services volume of 422 million pieces represented a 2.4 percent increase compared to the same period a year earlier.

Details of the first quarter results include:

• Operating revenue of $17.9 billion, compared to $18.4 billion in the same period a year earlier, a decrease of 2.6 percent;

• Operating expenses of $18.2 billion, compared to $18.6 billion in the same period a year earlier, a decrease of 2.4 percent;

• Total mail volume of 46.4 billion pieces, compared to 45.7 billion pieces in the same period a year earlier, an increase of 1.5 percent.

The Postal Service reduced work hours in the first quarter by 6.4 million hours or 2.1 percent representing a reduction of approximately 3,600 full time equivalent employees. The number of career employees on Dec. 31, 2010 was 578,292, a reduction of 5,616 employees since the beginning of the first quarter. Since Dec. 31, 2007, the number of career employees has been reduced by 102,721 or 15.1 percent

Service performance remained excellent during the first quarter, with the national score for overnight Single-Piece First-Class Mail arriving on-time 96 percent of the time, a slight improvement over the same period a year earlier.

“I am very proud of our workforce. Postal employees continue to deliver exceptional service in these difficult times and in very challenging weather,” said Postmaster General Patrick R. Donahoe, addressing the Postal Service’s Board of Governors in open session today in Washington.

Comments
  • http://RoyWoolner Roy Woolner

    QUESTIONS…

    Can the USPS go bankrupt? If so, would they be allowed to restructure their labor agreements?

  • http://EricJefferson Eric Jefferson

    “Excluding the cost of prefunding future retiree healthcare benefits and noncash adjustments to the workers’ compensation liability, the Postal Service would have had a net income of $226 million for the first quarter.”

    There is your problem!

    Business owners – How would you like to pay for ALL of your past, present and future employees that ever worked for your company health benefits?

    What a joke!

    Below is what the Post Office Union PR people came up with in the “About the U.S. Postal Service”

    A self-supporting government enterprise,”
    NO YOU’RE NOT – YOUR LOSING MONEY – HOW IS THAT SELF SUPPORTING?

    “The Postal Service receives no tax dollars for operating expenses, and relies on the sale of postage, products and services to fund its operations.”

    You’re correct, but for eveything else you NEED AND WASTE our tax money!