Postal Services loses more than $1.1B in February

Share this content:

The US Postal Service saw a net loss of more than $1.1 billion in February, when mail volume dropped 1.5% to fewer than 12.8 billion pieces. The USPS reported $5.1 billion in revenue for the month, a 1.5% decrease compared with the prior February.

It also cut work hours by 3%, year-over-year. In comparison, the USPS saw a $611 million net loss during February of 2010.

This monthly loss follows a pattern at USPS. For the first five months of its 2011 fiscal year, the USPS has reported a total net loss of nearly $1.9 billion. While total mail volume is up slightly (0.4%) for the fiscal year, total revenues remain down 2.3% compared to the same period last year.

In February, periodicals saw the largest volume and revenue decreases among major mail categories, dropping 8% and 9.2%, respectively, compared with the prior year. First Class mail volume was down 3% year-over-year in the month, while Standard Mail volume increased 0.5% in the February. Package services volume dropped 2.9% year-over-year in February to 43.9 million pieces.

The Postal Service said last week that it will eliminate about 7,500 positions in an effort to cut $750 million in costs. The organization will also close seven administrative district offices, including facilities in Ohio, Michigan, New Mexico and Georgia. Meanwhile, the Postal Regulatory Commission said last week that the USPS overestimated the potential cost savings of eliminating Saturday delivery.  

The organization reported an $8.5 billion net loss for its 2010 fiscal year, which ended last September 30. However, much of that of that loss was due to the required prefunding payment of $5.5 billion that the USPS made to its Retiree Health Benefits Fund.

The USPS does not comment on the unaudited monthly numbers provided by the PRC, said Greg Frey, PR representative at the Postal Service.

Sign up to our newsletters

Company of the Week

Brightcove is the world's leading video platform. The most innovative and respected brands confidently rely on Brightcove to solve their most demanding communication challenges because of the unmatched performance and flexibility of our platform, our global scale and reliability, and our award-winning service. With thousands of customers and an industry-leading suite of cloud video products, Brightcove enables customers to drive compelling business results.

Find out more here »

Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here

Relive the 2017 Marketing Hall of Femme

Click the image above