Postal Service Reports $3.5 Billion Loss

[MNeagle]

The U.S. Postal Service's fiscal-third-quarter loss widened to $3.5 billion as mail volume fell 1.7% and operating expenses increased, and a potential cash crunch looms.

The Postal Service has lost money each year since 2007, while mail volume has declined 20% since then, hit by the economy's downturn and the growing use of email and online bill payment. The problem is compounded by high fixed costs for the Postal Service.

Postal Service Chief Financial Officer Joseph R. Corbett said Thursday that liquidity remains a concern because it is uncertain whether it can both meet a $5.5 billion payment to its retiree health fund at the end of September and "retain sufficient liquidity" into the next fiscal year.

Despite cost cuts of more than $10 billion in the past three years, the Postal Service last month proposed raising the price of a first-class stamp in what would be the seventh increase in a decade.

The Postal Service's $3.5 billion loss for the quarter ended June 30 compares with a $2.4 million loss a year earlier. Its year-to-date loss widened to $5.4 billion from $4.7 billion.

Postmaster General John Potter said the Postal Service remains on track for cost savings of $3 billion this year, thanks to consolidating some operations and transportation networks, realigning carriers' routes, reducing workers' hours and delaying the construction of new facilities.

http://online.wsj.com/article/SB10001424052748703748904575411400825473116.html?m od=rss_whats_news_us_business

[Bildo]

I love these quasi-government entitites that cry poor, but have no problems paying themselves their bloated salaries. The mail-lady at our rural MI home gets paid $80k and works 5 hours a day. The postmaster general made $800k in 2009.


Postmaster General John E. Potter recently warned that economic times are so dire that the U.S. Postal Service may end mail delivery one day a week and freeze executive salaries. But his personal fortunes are nonetheless rising thanks to 40 percent in pay raises since 2006, a $135,000 bonus last year and several perks usually reserved for corporate CEOs.

The changes, approved by the Postal Board of Governors and contained in a little-noticed regulatory filing in December, brought Mr. Potter's total compensation and retirement benefits to more than $800,000 in 2008. That is more than double the salary for President Obama.

http://www.washingtontimes.com/news/2009/feb/17/in-hard-times-postmaster-earned-800000-in-pay-perk/

[Apparition]

I wonder what the chances are that it'll receive plenty of bailout money...

[ximmy]

get ready for your yearly stamp increase

[Phoenix]

Service is being cut by 1/6th, so I want a reduction in postage prices by 1/6th.

[1970 silver art]

I wonder what the chances are that it'll receive plenty of bailout money...


It would not surprise me to if the Postal Service got a bailout. They probably qualify as "too big to fail".

[k-os]

Since the government has a proven track record of success as seen with the Postal Service, we should certainly hand over our health care.






You know I am being sarcastic, but just in case . . .

[MNeagle]

Yup, look what they accomplished with AmTrak!

[k-os]

Is there any successful enterprise that the government has undertaken? How about a break-even? I will accept that as a "success".

[ximmy]

Since the government has a proven track record of success as seen with the Postal Service, we should certainly hand over our health care.

You know I am being sarcastic, but just in case . . .


I beg to differ... what about the US government success in Iraq & Afghanistan, success in social security... success in economic spending? :o

[MNeagle]

Is there any successful enterprise that the government has undertaken? How about a break-even? I will accept that as a "success".


Drug-running?

[k-os]

Is there any successful enterprise that the government has undertaken? How about a break-even? I will accept that as a "success".


Drug-running?


OK, but they don't publicly admit that business enterprise.

[MNeagle]

O.K. fair enough. How about the MIC or the PIC? (military industrial complex, prison industrial complex). Hmmm, maybe not there either!

[k-os]

O.K. fair enough. How about the MIC or the PIC? (military industrial complex, prison industrial complex). Hmmm, maybe not there either!


Do any of those turn a profit? I would say that the MIC is profitable, but only in the covert areas like drug-running. I doubt that the PIC is profitable, but I really don't know.

[1970 silver art]

Since the government has a proven track record of success as seen with the Postal Service, we should certainly hand over our health care.

You know I am being sarcastic, but just in case . . .


I beg to differ... what about the US government success in Iraq & Afghanistan, success in social security... success in economic spending? :o


Actually the U.S. government's biggest success so far is its ability to financially live within its means . :sarc: :sarc: :sarc: :sarc: :sarc:

[MNeagle]

I bet the IRS is profitable, but the double-bookkeeping won't reveal that.

There was a great vid on the old site (RIP) about city/state/county double-books, and they are hugely profitable.

[Ponce]

Say what??????? 3.5 BILLIONS for 1.7% ????????????.........why hell, if they were to loose 50% that would be like what? 187 Quatrillions?...........let's go back to the Pony Express.

[the riot act]

Actually government is the most successful enterprise in the world.

http://www.youtube.com/watch?v=uy8tnC4xLX8

[MNeagle]

Actually government is the most successful enterprise in the world.

http://www.youtube.com/watch?v=uy8tnC4xLX8


THANK YOU RA!!! This is a good trailer to the full doc. (which is what I saw). I wish this vid & the original doc. could be stickied somewhere, it's that important IMO.

[Gaillo]

Is there any successful enterprise that the government has undertaken? How about a break-even? I will accept that as a "success".


NASA is the only one that comes to mind, and only up until the early '80's.

[BabushkaLady]

The only good thing to come out of the post office recently was the Forever stamp.

Of course, being a Prepper, I loaded up on them in 2007. I'll be running on 41 cent stamps for a long long time. They only sold "books" because they didn't want businesses to buy up the "rolls". Ha!

[Ponce]

Tell you what, those 1,000 forever stamps that I bought about two years ago for 0.42 cents each look mighty pretty now.......

[wildcard]

Did any of the postal workers from GIM make it to GSUS? We used to have some post office apologists around. Snooty and entitled. Almost as bad as the DMV.

[Phoenix]

Tell you what, those 1,000 forever stamps that I bought about two years ago for 0.42 cents each look mighty pretty now.......


Until they're declared "not forever."

[Joe King]

O.K. fair enough. How about the MIC or the PIC? (military industrial complex, prison industrial complex). Hmmm, maybe not there either!


Do any of those turn a profit? I would say that the MIC is profitable, but only in the covert areas like drug-running. I doubt that the PIC is profitable, but I really don't know.


Last I heard, the US Mint is profitable. :D

[SQUEXX]

The USPS is a dumping ground for affirmative action for decades. And we all know how efficient government Negroes are! ::)

[Silver Rocket Bitches!]

Interesting how FedEx and UPS don't post a multi-billion dollar loss...

[Phoenix]

Interesting how FedEx and UPS don't post a multi-billion dollar loss...


Try sending one ounce across the country for 44 cents with FedEx or UPS.

Or visiting an office in every city and town in the country.