Track and Quotes

Show Shipment Information - Track and Trace PackageTrack and Trace
Get a Shipping Rate QuoteRate Quote

U.S. Postal Service Lost $3.8 Billion in 2009
Monday, 16 November 2009 00:00
Revenue dives $6.8 billion as mail volume plunges 12.7 percent

The U.S. Postal Service lost $3.8 billion in its fiscal year 2009, in what the chief financial officer called “one of the most challenging (years) in the history of the Postal Service.”

Operating revenue dived $6.8 billion to $68.1 billion as volume plunged 12.7 percent to 177.1 billion pieces.

Cost-cutting efforts resulted in $6 billion in savings and a $4 billion reduction in required payments for retiree health benefits, USPS said. The savings came through job losses for 40,000 career USPS employees as well as reductions in overtime hours, transportation and other costs. The health benefit payment reduction was passed into law for fiscal 2009 to allow USPS to maintain fiscal solvency while continuing to provide service.

Despite the savings, this year’s deficit topped last year’s by $1 billion.

“The deep economic recession, and to a lesser extent the ongoing migration of mail to electronic alternatives, significantly affected all mail products, creating a large imbalance between revenues and costs,” said Chief Financial Officer Joseph Corbett.

The Postal Service will file its 2010 Integrated Financial Plan later this week. The plan estimates a revenue decline of $2.2 billion, a net loss of $7.8 billion, cost reductions of more than $3.5 billion and a reduction in mail volume of 11 billion pieces for the year, based on the assumption that there will be no change in the number of delivery days per week, and no change in the current retiree health benefits payment schedule.

“We’re grateful to Congress and the Administration for the necessary 2009 adjustment to our retiree health payment,” said Postmaster General John Potter. But he urged further help, saying, “As volume contracts and we struggle to match the costs of an expanding delivery network with revenues received, it’s clear that long-term success requires fundamental, legislative change.”

Journal of Commerce Online, 11/16/2009