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USPS Loss

November 16, 2012 by  

USPS Loss, The Postal Service on Thursday reported a record $15.9 billion net loss for the fiscal year that ended Sept. 30, bringing the financially troubled agency another step closer to insolvency. The widely expected loss, more than triple the service’s loss last year, included accounting expenses of $11.1 billion related to two payments that the agency was supposed to make into its future retiree health benefits fund. But because of revenue losses, the post office was for the first time forced to default on these payments, which were due in August and October. Nearly $5 billion in other losses were because of a decline in revenue from mailing operations. The agency also reached its $15 billion borrowing limit from the Treasury.

Despite its financial troubles, officials said that the Postal Service would keep operating as usual and that employees and suppliers would be paid on time. The agency had warned that it could face a $100 million cash crunch in October because of a decline in revenue. But the agency reported more than $500 million in revenue from campaign mailings by candidates, political parties and other interest groups before the election. The agency said the revenue from political mail and the holiday season should help its cash situation until Congress acts on legislation to overhaul the post office.

The agency’s financial reports show that mail volume continues to decline as Americans increasingly turn to electronic forms of communication. Total mail volume was 159.9 billion pieces, down 5 percent from 168.3 billion pieces a last year. Operating revenue was $65.2 billion, down from $65.7 billion over the same period.

Report to Team

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