Postal Service is $700 million in the red
WASHINGTON (AP) -- Declining mail volume and rising fuel prices resulted in a $707 million loss for the Postal Service in the quarter that wrapped up March 31.
For the quarter, the agency handled 51.3 billion pieces of mail, a decline of 3.3 percent from the same period a year earlier. Both first class and standard mail declined for the period.
The second-quarter loss more than offsets a profitable performance in the first quarter of the fiscal year, resulting in a loss of $35 million on revenue of $39.3 billion for the first half of the year, the post office reported.
"Weakness in the housing and credit markets, both of which are heavy users of mail, are leading the declines in mail volume," Postmaster General John Potter said.
The agency has been working to cut costs, and postal rates increase next Monday, with the price of a first-class stamp rising a penny to 42 cents.
Revenue in the second quarter was $18.9 billion, an increase from last year because of a price increase in May 2007. But the agency said its costs were $19.6 billion for the period, increasing because of higher transportation expenses, largely fuel costs.
The post office also reported strong delivery performance. National on-time performance for the delivery of first-class mail scheduled for overnight service was 96 percent, two-day service was 94 percent on time and three-day service was 92 percent on-time.
Copyright 2008 The Associated Press.
COMMENTS
- I agree, "The USPS does a magnificent job". Why do postal employees pay about half as much for identical health plans as other govt. employees? Why not convert LLV mail delivery vehicles to electric, tow the battery pack behind it if necessary. Why not eleminate residental Saturday delivery, I can wait until Monday for junk mail, businesses can't. Why not eleminate walking and door to door routes by requiring curbside mailboxes if not the hated cluster boxes on one side of the street? Wheel768 Posted May 12, 2008 1:25 AM
- The post office has become obsolete. I believe most of their jobs should go away. I pay all my bills on line and only use the post office for Christmas cards. The staff at most post offices are rude. I think it is ridiculous that the carriers get several hundred dollars in tips around the Christmas holiday. Many of the employees may several thousands of dollars in overtime over a two month period. It is time we eliminate the post office and get the service we all deserve. Tina Posted May 9, 2008 10:06 AM
- If the junk mail carried the same postage as a first-class item, there would be no deficit GOOD POINT ! ! mo Posted May 8, 2008 4:36 PM
