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Postal Service Loses $1.9 Billion in Q2

Postal Service Loses $1.9 Billion in Q2

by Ian Smith |
May 9, 2014

The Postal Service has finished a second entertain of a mercantile year with a estimable net loss: $1.9 billion.

Total mail volume was 38.1 billion pieces compared to 38.8 billion pieces during a same time final year. First-Class Mail volume declined 4.1 percent, however, customary Mail volume increasing 0.5 percent and shipping and Package volume increasing 7.3 percent.

“The Postal Service is operative diligently to urge a finances by streamlining a network to urge efficiency, revoke handling costs and boost revenue, that was adult $379 million over a same duration final year — a third true entertain of income increase,” pronounced Postmaster General and Chief Executive Officer Patrick Donahoe.

“Despite assertive cost-cutting actions, however, we will still catch annual inflationary cost increases of approximately $1.2 billion any year, and First-Class Mail volume continues to decline,” combined Donahoe.

The Postal Service is operative to boost a package smoothness business by charity larger patron advantages such as softened tracking and Sunday and day-specific delivery. Shipping and Package income increasing $252 million or 8 percent over 2013 second entertain results, fueled by a expansion of ecommerce.

“Some comments in new news reports advise that all we need from Congress is assistance with restructuring a retirement health advantage plan,” pronounced Chief Financial Officer and Executive Vice President Joseph Corbett. “Nothing can be serve from a truth. Our liabilities surpass a resources by $42 billion and we have a need for some-more than $10 billion to deposit in new smoothness vehicles, package sortation equipment, and other deferred investments.

“We haven’t been creation a retirement health advantage prefunding payments since we can’t,” combined Corbett. “If legislation reduced a compulsory retirement health advantage prefunding payment, it doesn’t yield us with any some-more money to compensate down a debt or put most indispensable collateral into a business. Only extensive postal legislation that includes a smarter smoothness schedule, larger control over a crew and advantage costs, and some-more coherence in pricing and products will yield a required money flows.”

© 2014 FedSmith Inc. All rights reserved. This copyrighted essay might not be reproduced but demonstrate created agree of FedSmith Inc.

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