USPS Ends FY 2011 Third Quarter With $3.1 Billion Net Loss – Compared to $3.5 Billion For FY 2010
Filed under: postal, postal finances, postal news, press releases, usps
Default on Federal Payments Unavoidable Without Congressional Action
WASHINGTON — The U.S. Postal Service ended its third quarter of fiscal year (FY) 2011 (April 1-June 30) with a net loss of $3.1 billion, compared to a net loss of $3.5 billion for the same period in FY 2010. Total mail volume declined to 39.8 billion pieces for the quarter, compared to 40.9 billion pieces in the third quarter of FY 2010.
Postal Service third quarter revenue reflects the anemic state of the economy during the past three months. Additionally, the growth in electronic communications continues to erode core First-Class Mail volume. Net losses for the nine months ended June 30 amount to $5.7 billion in 2011 compared to $5.4 billion in 2010. Read more
USPS Announces Net Loss of $5.6 Billion After 9 Months Into FY 2011
USPS preliminary net loss for June 2011 –$900 million
The US Postal Service announced certain preliminary financial results for the nine months of Fiscal Year 2011 on FORM 8-K filed with the Postal Regulatory Commission (PRC). USPS reported a net operating loss of $5.6 billion ending on June 30, 2011. After eight months into FY 2011 USPS reported a net loss of $4.7 billion ending in May 2011.In October 2010 USPS saw a net profit of $283 Million, November 2010 net loss $456 million, December 2010 net loss $156 million, January 2011, net loss $451 million, February 2011, net loss $1.1 billion, March 2011, $657 million, April 2011 net loss of $747 million. Read more
Video: PMG discusses USPS financial woes on Fox Business
USPS Postmaster General Patrick Donahoe discusses the financial woes facing the U.S. Postal Service and the future of the agency with Tom Sullivan on Fox Business Network.
USPS Reports $4.7 Billion Net Loss ending May – $1.8 Billion More Than Same Period Last Year
Filed under: financial statements, postal, postal finances, postal news, usps
The US Postal Service filed its eighth month preliminary financial report of the 2011 fiscal year (unaudited) with the Postal Regulatory Commission (PRC) . USPS reported a net operating loss of $1.3 billion for the month of May 2011. This same period last year saw a $642 million net loss. In October 2010 USPS saw a net profit of $283 Million, November 2010 net loss $456 million, December 2010 net loss $156 million, January 2011, net loss $451 million, February 2011, net loss $1.1 billion, March 2011, $657 million, April net loss of $747 million . After eight months into FY 2011 USPS reports a net loss of $4.7 billion (same time last year it was $2.9 billion). USPS May 2011 Financial Results Net loss $1,348 billion for June and $4,653 billion ending May 31, 2011. at the end of April USPS loss was $ a little more than $3.3. billion.
Postal Service reduced work hours in the month of May by 94,182 million hours or 2.2%.
The number of career employees on May 31, 2011, was 567,401, non-career was 90,050.
* Total mail volume of 12,873,284 billion pieces, compared to 13,125,257 billion pieces in the same period a year earlier, a decrease of 1.90%
* Operating revenue of $5,120 billion, compared to $5,270 billion in the same period a year earlier, a decrease of 2.8%
* Personnel Compensation & Benefits was $3,930 billion roughly 77% of the total operating expenses, an increase of 0.4% SPLY
Mailing Services results for the month of May include:
* First-Class Mail revenue of $2.471,315 billion,decrease 7.8% on volume of 5,641,337 billion pieces;down 7.2%
* Standard Mail revenue of $1,396,194 billion,up by 4.1% on volume of 6,567,762 billion pieces; increase of 3.0%
* Periodicals revenue of $147,527 million,0.07% on volume of 579,449 million pieces; decrease 0.07%
* Package Services revenue of $119,404 million, increase 8.7% on volume of 47,145 million pieces, increase of 5.5%.
* Shipping Services revenue of $711,194, up by 4.7%. Shipping Services volume of 114,342 million pieces represented a 5.6% percent increase compared to the same period a year earlier.
* Total mail volume of 12,873,284 billion pieces, compared to 13,125,257 billion pieces in the same period a year earlier, a decrease of 1.90%
Could USPS shut down for good in July 2012?
Rate hike in Jan 2012? What is Going On? Twitter was busy today with Tweets about a USPS shutdown.
From Courier, Express, and Postal Observer:
The Wall Street Journal has reported that a number of private sector economic forecasters are toning down their economic forecast for the rest of 2011. Slower economic growth is not good for the USPS as it means less revenue across all mail classes. Slower economic growth is one of the factors that CFO Joe Corbett noted which could cause a July 2012 shut down date to happen sooner when he spoke at MTAC today.
From Non ProfitPostal
Assuming no legislation, & no worse news, the USPS starts shutting down July 2012 when it runs out of operating cash. (heard at MTAC) (nonprofitpostal)
Joe Corbett, USPS CFO says $15B debt limit will be reached Oct 15 when a wkr’s comp pmt is due. (at MTAC) @RepDennisRoss#nonprofitpostal
USPS CFO (at MTAC) says USPS will lose $8.3B in 2011, compared to original projections of $6.4B. Says that legislative reform is needed. Postcom2
Without legislative help? -All of them. And soon. RT @PostCom2 How many federal and postal employees are eligi… (cont) http://deck.ly/~SBVPf
nonprofitpostal Alive and well!
Assuming no legislation, & no worse news, the USPS starts shutting down July 2012 when it runs out of operatin… (cont) http://deck.ly/~0pnFc<
Paul Vogel, USPS Pres & CMO, CSO speaking to Mailer’s Technical Advisory Cmmtte AC #nonprofitpostal http://yfrog.com/h8rtbxujI smell the smoke of rate incr kindling RT @PostCom2 Court asks PRC to look at narrow part of original USPS decision http://bit.ly/lvQMJl
USPS reports net loss of $747 million for APR – YTD $3.3 billion
Filed under: financial statements, postal, postal finances, postal news, PRC, usps
The US Postal Service filed its seventh month preliminary financial report of the 2011 fiscal year (unaudited) with the Postal Regulatory Commission (PRC) . USPS reported a net operating loss of $747 million for the month of April 2011. This same period last year saw a $382 million net loss. In October 2010 USPS saw a net profit of $283 Million, November 2010 net loss $456 million, December 2010 net loss $156 million, January 2011, net loss $451 million, February 2011, net loss $1.1 billion, March 2011, $657 million. After seven months into FY 2011 USPS reports a net loss of $3.3 billion (same time last year it was $2.3 billion).USPS April 2011 Financial Results
USPS April 2011 Financial Results
USPS Ends FY Second Quarter With Net Loss Of $2.2 Billion
Filed under: financial statements, postal, postal finances, postal news, usps
Default on federal payments looming
U.S. Postal Service Loss Widens in Second Quarter
WASHINGTON — The U.S. Postal Service ended the second quarter of this fiscal year (Jan. 1 – March 31, 2011) with a net loss of $2.2 billion, compared to a net loss of $1.6 billion for the same period in FY 2010.
Despite significant cost reductions and revenue growth initiatives, current financial projections indicate that the Postal Service will have a cash shortfall and will have reached its statutory borrowing limit by the end of the fiscal year. Absent substantial legislative change, the Postal Service will be forced to default on payments to the federal government.
“The Postal Service continues to seek changes in the law to enable a more flexible and sustainable business model,” said Postmaster General and CEO Patrick R. Donahoe. “We are committed to working with Congress and the administration to resolve these issues prior to the end of the fiscal year. The Postal Service may return to financial stability only through significant changes to the laws that limit flexibility and impose undue financial burdens.”
Mailing Services revenue of $14.0 billion decreased $568 million, or 3.9 percent, in the second quarter of 2011, compared to the same period a year ago. Mailing Services volume of 40.7 billion pieces represents a 3.1 percent decline from the same period a year earlier. The modest increase in revenue from Standard Mail was not sufficient to offset the loss of revenue from the reduced volume of First-Class Mail.
“Sluggish economic growth and diversion of First-Class Mail to electronic alternatives continue to cause record losses, despite a reduction of over 130,000 full-time equivalents (FTEs) in the last three years,” says Joseph Corbett, CFO and executive vice president. The Postal Service reduced work hours in the second quarter by 9.6 million hours or 3.2 percent. The number of career employees on March 31, 2011, was 571,566, a reduction of 6,726 employees during the second quarter.
Mailing Services results in the second quarter include:
* First-Class Mail revenue of $8.0 billion, on volume of 18.5 billion pieces;
* Standard Mail revenue of $4.2 billion, on volume of 20.2 billion pieces;
* Periodicals revenue of $443 million, on volume of 1.7 billion pieces; and
* Package Services revenue of $394 million, on volume of 167 million pieces.
Shipping Services revenue of $2.2 billion increased 5.0 percent or $105 million compared to the same period a year ago. Shipping Services volume of 352 million pieces represented a 3.5 percent increase compared to the same period a year earlier.
Details of the second quarter results include:
* Total mail volume of 41.0 billion pieces, compared to 42.3 billion pieces in the same period a year earlier, a decrease of 3.0 percent, lead by a drop in First-Class Mail; and
* Operating revenue of $16.2 billion, compared to $16.7 billion in the same period a year earlier, a decrease of 2.8 percent.
Service performance remained excellent during the second quarter, with the national score for overnight Single-Piece First-Class Mail arriving on time 96 percent of the time, a slight improvement over the same period a year earlier. Read more
Congressman Ross Talks Postal Solvency & Bailouts On Fox News
Filed under: postal, postal finances, postal news, usps, videos
Rep. Dennis Ross, (R-Fla.), on what steps need to be taken to tackle the U.S. Postal Service’s growing debt crisis.
One of Ross’ comments deals with the exaggerated claim that postal workers pay as little as $32 per month for health care benefits compared to other Federal Workers paying $125. Rep. Ross was on Fox News saying Postal Workers pay on the average $32 per month for Health Care compared to $125 for other Federal workers. Postal Workers pay 20% of their health premiums, Federal workers pay 28%.– a 8% difference. Is this the kind of “new math” that will get USPS on the road to financial recovery? On a different note, postal pundits don’t factor in that the dental, eye care premiums are not subsidized by the Govt. as in the case of the private sector. The private sector also is covered by disability insurance whereas Postal Workers must seek private disability insurance or use personal leave. I have not read ONE article which correctly outlines Postal Employee benefits… not one!
Watch the video
Tweet: RepDennisRoss: Clip from today’s spot on the @TheWillisReport on Fox Business on Postal solvency, bailouts, and labor
USPS Net Loss For January 2011 is $451 Million – YTD $ 781 Million
The US Postal Service released its fourth month preliminary financial report of the 2011 fiscal year (unaudited) . USPS reported a net operating loss of $451 million for the month of January 2011. This same period last year saw a $592 million net loss. In October USPS saw a net profit of $283 Million, November 2010 net loss $456 million, December 2010 net loss $156 million. After four months USPS reports a net loss of $781 million for Fiscal Year 2011 (same time last year it was $890 million).
USPS January 2011 Preliminary Financial Report
Postal Service’s Net Income In FY Q1 $226 Million If Not For Pre-Funding Liability
Filed under: postal, postal finances, postal news, press releases, usps
Postal Service Begins 2011 with $329 Million Loss in First Quarter. Recession eases, but First-Class Mail volume continues to decline
The U.S. Postal Service (USPS) ended the first quarter of this fiscal year (Oct. 1 – Dec. 31, 2010) with a net loss of $329 million, compared to a net loss of $297 million for the same period in fiscal year 2010. Excluding the cost of prefunding future retiree healthcare benefits and noncash adjustments to the workers’ compensation liability, the Postal Service would have had a net income of $226 million for the first quarter.
Despite significant cost reductions and efforts to grow revenue, current financial projections indicate that the Postal Service will have a cash shortfall and will have reached its statutory borrowing limit by the end of the fiscal year. Absent changes in applicable laws, the Postal Service will be forced to default on some of its financial obligations to the federal government on Sept. 30, 2011.
“The Postal Service continues to seek changes in the law to enable a more flexible and sustainable business model,” said Postmaster General and CEO Patrick R. Donahoe. “We are eager to work with Congress and the Administration to resolve these issues prior to the end of the fiscal year.”
Economic indicators suggest that the worst of the precipitous volume decline during the recession is over. The lack of strong economic growth, however, continues to have an impact on the Postal Service’s financial situation. Total mail volume increased a modest 707 million pieces or 1.5 percent for the first quarter of 2011, compared to the first quarter of 2010. Total mail volume remains well below the 2006 peak.
Mailing Services revenue of $15.3 billion decreased $520 million, or 3.3 percent, in the first quarter of 2011, compared to the same period a year ago. Mailing Services volume of 45.9 billion represents a 1.5 percent increase from the same period a year earlier. Revenues from Mailing Services declined despite an increase in overall volume. The increase in revenue from Standard Mail was not sufficient to offset the loss of revenue from the reduced volume of First Class Mail.
Mailing Services results include:
First-Class Mail revenue of $8.8 billion, on volume of 20 billion pieces;
Standard Mail revenue of $5 billion, on volume of 23.8 billion pieces;
Periodicals revenue of $480 million, on volume of 1.8 billion pieces; and
Package Services revenue of $431 million, on volume of 186 million pieces.
Shipping Services revenue of $2.6 billion increased 1.7 percent or $42 million compared to the same period a year ago. Shipping Services volume of 422 million pieces represented a 2.4 percent increase compared to the same period a year earlier.
Details of the first quarter results include:
Operating revenue of $17.9 billion, compared to $18.4 billion in the same period a year earlier, a decrease of 2.6 percent;
Operating expenses of $18.2 billion, compared to $18.6 billion in the same period a year earlier, a decrease of 2.4 percent;
Total mail volume of 46.4 billion pieces, compared to 45.7 billion pieces in the same period a year earlier, an increase of 1.5 percent.
The Postal Service reduced work hours in the first quarter by 6.4 million hours or 2.1 percent representing a reduction of approximately 3,600 full time equivalent employees. The number of career employees on Dec. 31, 2010 was 578,292, a reduction of 5,616 employees since the beginning of the first quarter. Since Dec. 31, 2007, the number of career employees has been reduced by 102,721 or 15.1 percent
Service performance remained excellent during the first quarter, with the national score for overnight Single-Piece First-Class Mail arriving on-time 96 percent of the time, a slight improvement over the same period a year earlier.
“I am very proud of our workforce. Postal employees continue to deliver exceptional service in these difficult times and in very challenging weather,” said Postmaster General Patrick R. Donahoe, addressing the Postal Service’s Board of Governors in open session today in Washington.
Several new marketing initiatives have been introduced that may help to improve revenue growth in 2011, including expansion of simplified addressing for business mailers, Priority Mail Regional Rate Boxes, Reply Rides Free, customized cards and the sale of gift cards. In addition, in January 2011, new Shipping Services prices increased an average of 3.6 percent. New Mailing Services prices that are limited to the Consumer Price Index cap of 1.7 percent, will take effect in April. While new marketing initiatives and price increases may help improve revenue growth, electronic diversion implies long term structural changes in demand.
The Postal Service is aggressively pursuing a plan to reduce total expenses, which include organizational redesign initiatives. The Postal Service projects $2 billion in cost savings in fiscal year 2011, including a reduction of some 40 million work hours across the organization. Benefits of these initiatives, however, may be offset by rising fuel prices. Also, new contracts with the American Postal workers Union (APWU) and the National Rural Letter Carriers Association (NRLCA) are currently in negotiation.
Copies of the first quarter financial results will be available later today on the Postal Service website: http://www.usps.com/financials/_doc/Quarter_I_FY11_10Q_Final.doc
The Postal Service receives no tax dollars for operating expenses, and relies on the sale of postage, products and services to fund its operations.