The U.S. Postal Service filed its July 2009 (unaudited) preliminary financial report yesterday with the Postal Regulatory Commission. USPS reported a net income loss of $721 million (July 2009 was $865 million). The year-to-date deficit currently stands at approximately $6.3 billion. Mail volume was down across all classes with an overall total decrease of 13.2%. The Postal Service continues to reduce its workhours with Mail Processing and Customer Services/Retail showing the highest reduction of 14.4% and 11.9% respectively.
The U.S. Postal Service said it “expects to lose more than $7 billion by the end of the fiscal year . The rising tide of red ink could leave the Postal Service with a potential cash shortfall of up to $700 million by its fiscal year-end on Sept. 30, when it must pay up to $5.8 billion to pre-fund retiree health benefits. Postal Service officials hope Congress will pass legislation that would increase its ability to borrow from the U.S. Treasury Department before the bill comes due.”