USPS reported earlier this month that Postal Service Ends First Quarter With Loss Of $384 Million. The text of the 8-K report filed with the Postal Regulatory Commission (PRC) on February 19, 2009 shows USPS has lost over $1.1 billion thus far in Fiscal Year 2009.
The U.S. Postal’ Service (USPS) previously announced a loss for the quarter ending December 31,2008, in an 8K filed on February 9,2009. USPS discloses that its unaudited January 2009 financial results were an estimated $5.80 billion in revenue and $6.55 billion in expenses, resulting in an estimated net loss of $751 million. This loss compares to a loss of $44 million in January 2008, which resulted from total f:evenue of $6.58 billion and total expenses of $6.62 billion. Mail volumes declined by over 1(5% in January 2009 from January 2008. The January results continue to illustrate that the downward pressure on the Postal Service business continues into 2009.
USPS’ First Quarter Overview as reported to PRC on February 9, 2009
o Volume decline of 5.2 billion pieces, or 9.3°k, driven by the economic recession
o Eighth consecutive quarter of accelerating volume declines
o Revenue decline of $1.3 billion compared to Q1, FY 2008
o 27 million fewer workhours used -reduction of 7.5°k
o Some cost benefit from low inflation, but significant cost pressure from labor wage increases