NALC statement on USPS financial losses
Filed under: NALC, postal, postal finances, postal news, press releases
Nov. 15, 2011 — For the first time since the recession began in 2007, this year’s Postal Service loss was largely driven by the continued impact of the worst recession in 80 years and the effect of Internet technology—above and beyond the crushing and unique burden of the congressional mandate to pre-fund future retiree health benefits.
This mandate accounted for 100 percent of the losses over the previous four years.
That does not change what has to be done.
Congress must alleviate the pre-funding burden and the Postal Service and its stakeholders must work relentlessly to reinvent the Post Office for the 21st century.
Today we are working with the Postal Service at the bargaining table on doing just that.
source: Latest News | NALC statement on Postal Service losses.
USPS Ends Fiscal Year 2011 with $5.1 Billion Loss
Growth in Shipping Services; Continued Decline in First-Class Mail Volume
WASHINGTON — The U.S. Postal Service ended its 2011 fiscal year (Oct. 1, 2010 – Sept. 30, 2011) with a net loss of $5.1 billion. The year-end loss would have been approximately $10.6 billion had it not been for passage of legislation that postponed a congressionally mandated payment of $5.5 billion to pre-fund retiree health benefits.
Total 2011 mail volume declined by 3 billion pieces, or 1.7 percent, from 2010. The Postal Service’s largest and most profitable product, First-Class Mail, continued its year-over-year decline, from $34.2 billion in 2010 to $32.2 billion in 2011 (5.8 percent), which dwarfed continued growth in its more competitive products, packages and Standard Mail.
USPS Shipping Services revenue, which includes Priority Mail and Express Mail, increased $530 million in 2011 (6.3 percent). The increase in Shipping Services revenue was driven by strong growth in the Parcel Select and Parcel Return Services, due to increased mailings of packages, as customers continued to use the Internet more often to purchase products. Revenue from Standard Mail increased by $495 million (2.9 percent) on a volume increase of 2 billion pieces (2.6 percent).
“The Postal Service can become profitable again if Congress passes comprehensive legislation to provide us with a more flexible business model so we can respond better to a changing marketplace,” said Postmaster General and CEO Patrick Donahoe. “To return to profitability we must reduce our annual costs by $20 billion by the end of 2015. We continue to take aggressive cost-cutting actions in areas under our control and urgently need Congress to do its part to get us the rest of the way there.”
Other 2011 financial results include:
- Operating revenue of $65.7 billion compared to $67.1 billion the year before
- Operating expenses of $70.6 billion compared to $75.4 in 2010
- The retiree health benefit pre-funding payment postponed by Congress and the President is now due by Nov. 18. Unless additional legislation is enacted, the Postal Service will be forced to default on this payment.
The Postal Service continued to increase operating efficiency in 2011, including a reduction in work hours by 34 million despite an increase of 636,500 delivery points. Its productivity gains were the result of effective workforce management, efficient use of materials and transportation, and continued advancements in the use of technology. Since 2001, the Postal Service has reduced work hours by 28 percent, while delivering to almost 14 million additional addresses.
USPS 10k report for Fiscal Year 2011
“The continuing and inevitable electronic migration of First-Class Mail, which provides approximately 49 percent of our revenue, underscores the need to streamline our infrastructure and make changes to our business model,” said Chief Financial Officer Joe Corbett. “Since peaking at 213 billion pieces in 2006, our volume has continued to decline each year.”
USPS Presentation of Finances for FY 2011
Postal Service to Announce FY 2011 Financial Results on Nov. 15
CFO Briefing Follows Board of Governors Open Session Meeting
WASHINGTON — The Postal Service will release its FY 2011 financial results on Nov. 15 during an open session meeting of the Board of Governors. Following the meeting, Chief Financial Officer Joe Corbett will host a telephone/web conference call to discuss the results.
The call with Mr. Corbett will begin at 4 p.m. ET and is open to the news media and all other interested parties.
TO ATTEND WITH AUDIO ONLY:
From a phone, dial: 866 567-8049 (Meeting ID: 7411388)
TO ATTEND THE WEB CONFERENCE AND JOIN WITH AUDIO:
1) Browse to: http://meetingplace3.usps.gov/join.asp?7411388
2) After the MeetingPlace window is open, click the Phone icon (under the Participant List or in the upper right-hand corner).
3) Click Connect Me, validate or update your phone number and click Connect Me again.
4) When the system calls you press 1 to join.
House Committee Releases Very Misleading Video On Who Supports Issa-Ross Postal Reform Bill
Filed under: politics, postal, postal finances, postal news, postal reform, press releases, scams, usps, videos
This news release and video suggests that the entire House Committee On Oversight and Government Reform and all Senators support the Issa-Ross-McCain Postal Reform Bill as well as the views on the USPS overpayment. However, only one member of the Committee has signed on as a co-sponsor for HR 2309. Very misleading on all fronts. Read more
Congressman Amash Issues Statement on Postal Service Default
Filed under: politics, postal, postal finances, postal news, press releases, usps
USPS Fails to Make $5.5 Billion Payment
Washington, D.C. – (September 30, 2011) Rep. Justin Amash (R-MI), Vice Chairman of the Subcommittee on the Federal Workforce, U.S. Postal Service, and Labor Policy, issued the following statement on the U.S. Postal Service’s default:
“Later today, the Postal Service will default on a $5.5 billion payment owed to the federal government. This payment, required by law, would reduce the Postal Service’s massive unfunded liability for retiree health care benefits. Read more
USPS Net Loss For July $1.3 Billion – Year To Date Loss Reaches $7 Billion
USPS preliminary net loss for July 2011 –$1.327 Billion, year to date nearly $2 Billion more than planned.
The US Postal Service filed its preliminary financial results for ten months of Fiscal Year 2011 with the Postal Regulatory Commission (PRC). USPS reported a net operating loss of $1.327 billion ending on July 31, 2011. After ten months into FY 2011 USPS reported a net loss of $7 Billion ($6.985) ending in July 2011 (same time last year USPS had a net loss of $6.143, the plan was $5.004 Billion .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, May 2011 net loss $1.3 Billion, June 2011 net loss $900 million. 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