US Postal Service runs $2.2B Q2 net loss

Share this content:

The US Postal Service saw a net loss of $2.2 billion in its fiscal second quarter, which ended March 31, despite cutting work hours by 3.2%.

The organization again warned that it will face a cash shortfall by the September 31 end of its 2011 fiscal year, and it will have to default on payments to the federal government without major legislative changes.

“The Postal Service may return to financial stability only through significant changes to the laws that limit flexibility and impose undue financial burdens,” said Postmaster General Patrick Donahoe, in a statement.

Revenue from mailing services dropped 3.9% to $14 billion in Q2, compared with the same period of 2010. Mailing services volume also decreased 3.1%, compared with Q2 2010, to 40.7 billion pieces.

Shipping services revenue increased 5% year-over-year in the quarter to $2.2 billion, while shipping services volume grew by 3.5%, compared with the prior year, to 352 million pieces. The USPS ran a net loss of $8.5 billion in FY 2010.

Although the organization's push to enact “exigent” rate increases was struck down by the Postal Regulatory Commission last year, the USPS is also urging legislators to allow it to reduce its home delivery schedule to five days per week. It is also asking Congress to reform its pension payments requirements, which its inspector general contends have overcharged the Postal Service by tens of billions of dollars since 1972.

Sign up to our newsletters

Company of the Week

Since 1985, Melissa has helped thousands of companies clean, correct and complete contact data to better target and communicate with their customers. We offer a full spectrum of data quality solutions, including global address, phone, email, and name validation, identify verification - available for batch or real-time processes, in the Cloud or on-premise. Our service bureau provides dedupe, email/phone append and geographic/demographic append services for better targeting and insight. For direct mailers, Melissa offers easy-to-use address management/postal software, list hygiene services and 100s of specialty mailing lists - all with competitive pricing and excellent customer service.

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