Postal Service reported Friday that losses for fiscal 2020 widened to more than $9 billion even as revenue rose, given a drop in demand for mail services and … "Given the positive mail trends, it would be irresponsible to degrade services to Americans and their businesses, which would drive away mail - and revenue - and stop the postal turnaround in its tracks," Fredric Rolando, president of the National Association of Letter Carriers, said in a statement. By the end of the decade, the semi-independent government agency's losses had reached a record $8.5 billion, forcing the Postal Service to consider seeking an increase in its $15 billion debt ceiling or face insolvency. The U.S. The volume of its most profitable product, first-class mail, fell 1.4 percent as more people communicate electronically, but the temporary rate increase helped offset the losses by bringing a 3.2 percent rise in revenues for that product. (Reporting by Elvina Nawaguna; Editing by Karey Van Hall and Jonathan Oatis). U.S. Post Office losses more than double to $8.8 billion for the year, while revenue rises - MarketWatch. In all, campaign mailings and mail-in ballots helped bring in $500 million, a new high and roughly double the amount in the 2008 election year. Postal Service on Friday said its losses more than doubled to $4.5 billion in the quarter ending in March and warned the economic slowdown spurred by the spread of COVID-19 could severely hurt its finances over the next 18 months. The post office lost $153 million last year and $276 million in 2018. Congress is focused now on a Jan. 1 deadline to avert across-the-board tax increases and spending cuts known as the "fiscal cliff.". The Postal Service also originally sought to close low-revenue post offices in rural areas to save money, but after public opposition, it is now moving forward with a new plan to keep 13,000 of them open with shorter operating hours. This means the company's total losses for the year are likely to top Pounds 1.1bn when they are announced next week, despite better-than- expected operating losses thought to be Pounds 200m-Pounds 300m. More On This Topic Despite the red ink, the latest announcement showed an improvement from 2012 when USPS lost $15.9 billion that year. The Postal Service projects the delivery of 15.5 billion cards, letters and packages from Thanksgiving to New Year's Eve—including a record 600 million packages. All rights reserved. Under a … We made it easy for you to exercise your right to vote! Rural lawmakers are resisting action, worried about closures of postal facilities in their communities. Last month, the post office said it will increase postage rates on Jan. 27, including a 1-cent increase in the cost of first-class mail, to 46 cents. Without legislative changes, it said, annual losses will exceed $21 billion by 2016. : Post office’s losses widen to $9 billion this year as election boost fails to offset drop in mail demand . Postal Service lost $8.8 billion in fiscal 2019, more than doubling its losses from the previous year. Despite the red ink, the latest announcement showed an improvement from 2012 when USPS lost $15.9 billion that year. Tap here to turn on desktop notifications to get the news sent straight to you. Investors, for instance, can expect parcel-shipping rates to rise further as the post office tries to limit losses by controlling what it can. Post office losses widen to $5.6 billion this year - MarketWatch. The net loss for the year, which was decreased by a $1.3 billion non-cash change in estimate, was $5 billion. The U.S. It remained unclear whether House leadership would take up the postal bill in its current lame-duck session. The jump in losses was largely due to a $1.5 billion increase in operating expenses as a result of workers compensation payments, the agency said. The cost of restructuring Consignia, the renamed Post Office, has doubled from earlier predictions of Pounds 400m to at least Pounds 800m. Postal Service posted a $5.8 billion loss in fiscal 2016, bringing its 10-year cumulative total loss to $62.4 billion. Today, the U.S. The Post Office has racked up $5.9 billion in losses already this fiscal year. Posted by Ross Stalker | Updated 2006-10-16. The House, however, remains stalled over its own legislation that would allow for aggressive cuts, including an immediate end to Saturday delivery. Having reached its borrowing limit, the mail agency is operating with little cash on hand, putting it at risk in the event of an unexpectedly large downturn in the economy. The financial losses for the fiscal year ending Sept. 30 were more than triple the $5.1 billion loss in the previous year. Joseph Corbett, chief financial officer for the Postal Service, said the mail agency expects to operate for the first half of next year with about four days of cash reserves, a low amount which he described as unheard of for any well-run business. Because of continued losses, the agency also said, it has not been able to update its fleet. A post office that loses a few billion dollars a year is affordable for a country with a GDP of $20 trillion. Without that and other related labor expenses, the mail agency sustained an operating loss of $2.4 billion, lower than the previous year. USPS and postal unions have so far failed to coax U.S. lawmakers to allow it to modify its business, including eliminating or modifying the future retirees' health fund. Post Office branches, along with the Royal Mail delivery service, were formerly part of the General Post Office and after 1969, the Post Office corporation. While urging quick congressional action, the Postal Service acknowledged the uncertainty in its legal filings on Thursday, which anticipate that Congress will fail to act. An increase in its shipping and package business helped the agency see a 2 percent rise from last year in its total operating revenues to $16.5 billion. Donahoe said package volume also is expected to jump by 20 percent this holiday season compared to the same period last year, boosted by increased consumer purchases on e-Bay, Amazon.com and other Internet shopping sites. The U.S. Many in the industry point to these improvements as a sign that the agency does not need to make the drastic service cuts it has sought. Earlier this year, the post office defaulted on two of the health prepayments for the first time in its history. But that's not Amazon's fault. The financial losses for the fiscal year ending Sept. 30 were more than triple the $5.1 billion loss in the previous year. Your California Privacy Rights/Privacy Policy. ©2021 Verizon Media. "It's critical that Congress do its part and pass comprehensive legislation before they adjourn this year to move the Postal Service further down the path toward financial health," said Postmaster General Patrick Donahoe, calling the situation "our own postal fiscal cliff.". The rate increase is a temporary measure to mitigate the effects of the recession. The annual payment of roughly $5.6 billion had been deferred for a year in 2011, resulting in a double payment totaling $11.1 billion that became due this year. The number of items mailed in the last year was 159.9 billion pieces, a 5 percent decrease. Last year was the worst for the High Street in more than 25 years as the coronavirus accelerated the move towards online shopping, analysts say. The waste, fraud, and inefficiency of DOD far exceeds the operating losses of the Post Office. The agency said on Monday that it lost $2 billion from April to June, compared with a net loss of $740 million in the same period last year, and a $1.9 billion loss in its first quarter. The Senate passed a postal bill in April that would have provided financial relief in part by reducing the annual health payments and providing a multibillion-dollar cash infusion, basically a refund of overpayments the Postal Service made to a federal pension fund. The U.S. The post also cites a Fortune story that details alarms raised by some officials about the health of the Postal Service. Part of HuffPost Business. Shipping and package revenue jumped 6.6 percent, compared with the same period last year. That positive cash flow came despite a large reported net losses — $7.5 billion the most recent nine months, up from a net loss of $5.9 billion in the year earlier period. The U.S. Postal Service on Thursday reported an annual loss of a record $15.9 billion and forecast more red ink in 2013, capping a tumultuous year in which it was forced to default on billions in payments to avert bankruptcy. The agency also wants Congress to authorize it to limit door-to-door delivery and to cut Saturday mail delivery, but those plans have been blocked by some unions and lawmakers who say it would hurt their communities. Much of the decline came in first-class mail. Jo carried out a factfinding mission on Post Offices in East Dunbartonshire earlier this year. In 2017, the service lost $800 million on $69.7 billion operating revenue. The Postal Service reported a loss of $2.7 billion for the fiscal year that ended Sept. 30. Of this decline in net loss, $2.4 billion was the result of changes in interest rates, outside of management's control, that reduced workers’ compensation expense compared to last year. The rate increase, which is tied to the rate of overall inflation, will make only a small dent in financial losses. At which, PMG Potter testified that by the year 2020, the USPS cumulative losses could exceed $238 billion, and that mail volume could drop 15 percent from 2009. Savings from plant consolidations, restructuring hours at Post Offices, reductions in delivery units, and workforce optimization resulted in approximately $1 billion of savings in 2013. "We cannot sustain large losses indefinitely. Postal Service (USPS) released its financial report for the 2017 fiscal year in which its leadership detailed a greatly concerning loss of $2.7 billion. The losses followed combined pre-tax profits of $388 million in the period from 2014 to 2017. Expenses climbed to $81 billion, up from $70.6 billion, largely due to the health prepayments. Since 2007, losses have totaled more than $70 billion. Post Office Counters Ltd was created as a wholly owned subsidiary of the Post Office corporation in 1986. WASHINGTON (AP) — The struggling U.S. Postal Service lost money in six out of the 10 years from 2001 through 2010, according to its financial reports. The postal service has lost money for 11 straight years, mostly because of pension and health care costs. "To continue to provide world-class service and remain competitive, we must invest up to $10 billion to replace our aging vehicle fleet, purchase additional package-sorting equipment, and make necessary upgrades to our infrastructure," said USPS Chief Financial Officer and Executive Vice President Joseph Corbett. Today is National Voter Registration Day! ... lower than the previous year. The results marked the 13th consecutive year the mailing agency lost … Postal Service is clearly marching toward a financial collapse of its own," said Sen. Tom Carper, D-Del., a sponsor of the Senate bill. But the agency also recorded a net loss of $8.8 billion, with 80 percent of that loss attributable to employees’ health-care … Much of the red ink in 2012 was due to mounting mandatory costs for future retiree health benefits, which made up $11.1 billion of the losses. Many in the industry point to these improvements as a sign that the agency does not need to make the drastic service cuts it has sought. "The U.S. Sign up for membership to become a founding member and help shape HuffPost's next chapter. WASHINGTON, Aug 11 (Reuters) - The U.S. JOHANNESBURG - The SA Post Office (Sapo) continues to bleed with the entity posting another financial loss of R978 million in the last financial year, however, showing a … The post office also has been rocked by declining mail volume as people and businesses continue switching to email and other online options in place of letters and paper bills. "We are far short of liquidity," Corbett said. The net losses at the Postal Service grew by leaps and bounds in fiscal year 2019 according to the agency’s latest financial results. "I am hopeful that now that the elections are over, my colleagues and I can come together and pass postal reform legislation so that a final bill can be signed into law by the end of the year.". The Post Office Lost $2 Billion In Just 3 Months. The Postal Service is the only government agency required to make such payments. Fears for Post Office services hit by losses of Card Account footfall. The Postal Service, an independent agency, does not receive tax money for its day-to-day operations but is subject to congressional control. On the plus side, the mail agency reported that its fast-growing shipping services, which include express and priority mail, grew by 9 percent, helping to offset much of the declining revenue from first-class mail. The U.S. The U.S. For the 2015 fiscal year, the Postal Service recorded a net loss of $5.1 billion, compared with a loss of $5.5 billion in 2014. Postal Service reported Thursday a fiscal 2019 net loss … Donahoe said the post office has been able to reduce costs significantly by boosting worker productivity. After the Post Office statutory corporation was changed to a public company, Royal Mail Group, in 2001, Post Office Counters Ltd became Post Office Ltd. The word processors and typists occupation is slated to lose 13,200 jobs by 2020, according to the Bureau of Labor Statistics. USPS has focused on its shipping and package business and expanded to Sunday package delivery as more people shop online and need a service to deliver their purchases. Major defaults are unsettling," said Donahoe, who made clear that the Postal Service would now be profitable had Congress acted earlier this year. In 2019, USPS made $514 million more in revenue than it did in its previous fiscal year, thanks to increases in postage rates and its package delivery business. Cash levels dipped perilously close to zero last month before bouncing higher due to a surge in election-related mail. Losses more than doubled at the US Postal Service in the first three months of the year to $1.3 billion. But Rep. Darrell Isa, chairman of the House Oversight and Government Reform Committee and sponsor of the House bill, has said he believes postal legislation can be passed this year. Postal Service continued to bleed money during its second quarter, despite an increase in package revenues and an emergency price hike that took effect in January. A view shows U.S. postal service mail boxes at a post office in Encinitas, California, February 6, 2013. "If Congress fails to act, there could be postal slowdowns or shutdowns that would have catastrophic consequences for the 8 million private sector workers whose jobs depend on the mail," said Art Sackler, co-coordinator of the Coalition for a 21st Century Postal Service, a group representing the private sector mailing industry. But he said the mail agency has been hampered by congressional inaction on a postal overhaul bill that would allow it to eliminate Saturday mail delivery and reduce its $5 billion annual payment for future health benefits. The Postal Service already defaulted on three of its payments into the fund and does not expect to make the next $5.7 billion installment due September 30. The Postal Service reported a net loss for the year of $2.7 billion, a decrease in net loss of $2.8 billion compared to 2016. 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