USPS posts $3.1 billion loss in Q3, warns of default

[Bad_Daddy 2,209]

http://news.yahoo.com/usps-posts-3-1-billion-loss-q3-warns-145707721.html

WASHINGTON (Reuters) - The U.S. Postal Service posted a net loss of $3.1 billion in its third quarter and warned again it would default on payments to the federal government if Congress did not step in.

Total mail volume for the quarter that ended June 30 fell to 39.8 billion pieces, a 2.6 percent drop from the same period a year earlier, as consumers turn to email and pay bills online.

The mail carrier, which does not get taxpayer funds, has struggled to overhaul its business as mail volumes fall. It has said personnel costs weigh heavily and is facing a massive retiree health benefit prepayment next month.

"We are experiencing a severe cash crisis and are unable to continue to maintain the aggressive prepayment schedule," Joseph Corbett, the agency's chief financial officer, said in a statement.

"Without changes in the law, the Postal Service will be unable to make the $5.5 billion mandated prepayment due in September."

Congress, which last week ended a vitriolic debate about the U.S. government's debt levels and budget deficit, is now in recess until early September.

USPS cut work hours during the quarter by 3.1 percent compared to the previous year, when quarterly net losses were $3.5 billion.

The Postal Service said it lost $5.7 billion during the nine-month period ended June 30, compared to $5.4 billion in the same period of 2010.

In its fourth straight year of declines, the agency had a net loss of $8.5 billion for the 2010 fiscal year.

Despite the overall losses, USPS said shipping and standard mail saw growth in the third quarter, with revenues up 7.3 percent and 1.7 percent respectively. Packaging services revenue rose 3.2 percent.

Postal officials have called for Congress to change the way USPS operates, saying it needs more flexibility to close failing post offices, cut Saturday delivery and raise rates.

The agency is studying about 3,700 of its 32,000 post offices, stations and branches for possible closure. Officials plan to replace post offices by contracting with private retailers to sell stamps, offer shipping and provide other postal services.

[Obama 2012 1,714]

TARGET stores here already have USPS kiosks....

Though the thing about that is, is that they are operated by 'Pitney Bowes.'

Perhaps if the USPS weren't paying so much damn money exclusively to 'Pitney Bowes' they might actually get somewhere.

[dalegg 143]

Whatever finally stops the junk mail.

[Pinocchio Liberal 268]

3 billion loss, lets keep it going! Nuthin like keeping Obama's employment numbers up.

[rsn 135]

3 billion loss, lets keep it going! Nuthin like keeping Obama's employment numbers up.

You do realize that the post office has been losing money for many years,right? Also, it is not federally funded. In short, obama has nothing to do with this. mmkay?

[Gary and Alla 3,694]

I am looking forward to the Federal Goverment taking over my medical care so they will lose money on that also. It is about time they end the practice of profit from medical care!

They can just close some hospitals to save money.

You do realize that the post office has been losing money for many years,right? Also, it is not federally funded. In short, obama has nothing to do with this. mmkay?

The federal government has nothing to do with the post office? Seriously?

[Gary and Alla 3,694]

You do realize that the post office has been losing money for many years,right? Also, it is not federally funded. In short, obama has nothing to do with this. mmkay?

Postal officials have called for Congress to change the way USPS operates, saying it needs more flexibility to close failing post offices, cut Saturday delivery and raise rates.

And to think the federal goverment has "nothing to do with this" mmkay.

[rsn 135]

Postal officials have called for Congress to change the way USPS operates, saying it needs more flexibility to close failing post offices, cut Saturday delivery and raise rates.

And to think the federal goverment has "nothing to do with this" mmkay.

I think you are lacking in the reading comprehension department. I'll say it again, this time read a bit more carefully. Obama has nothing to do with this. Just in case this is over your head, I'll expand. There is no reason for this to be yet another reason for people with an axe to grind to find fault with Obama. The problems at USPS have nothing to do with him. The postmaster general is not a member of the cabinet & the USPS does not receive subsidies directly from any tax revenue. The USPS has been losing money for many, many years now.

Does this clear things up for you, or do you need me to explain further?

[lostinblue 1,989]

Two main problems ....Loss of revenue from the internet. and UNIONS. I was with some one who had two postal pallets to be weighed and shipped out. It took 3 hours to process. A few weeks ago a tractor trailer had about 30 pallets of mail. The driver unloaded everything (no power jacks) and then they decided to reject the load . He was fifty cents off on the postage. They do offer some leeway and in another post office they would have let it slide. But not that day. Often my friend is told not my job, It is against our union contract to do this or do that. You have to wait for so and so to come back from lunch.Mean while there is five people standing around talking.There are hard working people employed there but there are many more screw offs than average from what I have seen.

[SuperDuper! 230]

Wow, the creeky old Post Office is still trying to do things a 20th Century way and maintain the status Quo.

I say reduce mail delivery to 3x/wk. Then I can save time, and empty my mailbox full of advertisements I don't want 50% less. Multiplied over a lifetime, and that's pretty significant.

[Ste 6]

Two main problems ....Loss of revenue from the internet. and UNIONS. I was with some one who had two postal pallets to be weighed and shipped out. It took 3 hours to process. A few weeks ago a tractor trailer had about 30 pallets of mail. The driver unloaded everything (no power jacks) and then they decided to reject the load . He was fifty cents off on the postage. They do offer some leeway and in another post office they would have let it slide. But not that day. Often my friend is told not my job, It is against our union contract to do this or do that. You have to wait for so and so to come back from lunch.Mean while there is five people standing around talking.There are hard working people employed there but there are many more screw offs than average from what I have seen.

I don't think unions are inherently a bad concept, like many politicians and businesses seem to in the US. Idiotic unions are a bad concept though. I would say that they're needed to balance the power between workers and management. You can get equally idiotic companies that treat their workers as badly as they can get away with. Unions keep countries from having slave-like workforces like in other countries, e.g. China. I'm sure no one with any sense of morality would ever want the US to get like that. Except the business owners of course. And no one with any sense wants a workforce that does what you just described. There needs to be a fine balance. Edited August 6, 2011 by Ste

[Gary and Alla 3,694]

Wow, the creeky old Post Office is still trying to do things a 20th Century way and maintain the status Quo.

I say reduce mail delivery to 3x/wk. Then I can save time, and empty my mailbox full of advertisements I don't want 50% less. Multiplied over a lifetime, and that's pretty significant.

More than once per week would be redundant, I rarely empty my mailbox into the recycle bin more often than that anyway. I haven't bought stamps at a post office since they did away with the machines in an effort to make work for union members but really just drove more customers to the grocery store where we have to go anyway.

[bigdog 376]

Stop the junk mail, get employees who wnat to work and are polite. Make it a private business not government run.