View Full Version : U.S. Issues USPS posts $3.1 billion loss in Q3, warns of default

08-07-2011, 11:06 PM
WASHINGTON (Reuters) - The U.S. Postal Service posted a net loss of $3.1 billion in its third quarter and warned again it would default on payments to the federal government if Congress did not step in.

Total mail volume for the quarter that ended June 30 fell to 39.8 billion pieces, a 2.6 percent drop from the same period a year earlier, as consumers turn to email and pay bills online.

The mail carrier, which does not get taxpayer funds, has struggled to overhaul its business as mail volumes fall. It has said personnel costs weigh heavily and is facing a massive retiree health benefit prepayment next month.

"We are experiencing a severe cash crisis and are unable to continue to maintain the aggressive prepayment schedule," Joseph Corbett, the agency's chief financial officer, said in a statement.

"Without changes in the law, the Postal Service will be unable to make the $5.5 billion mandated prepayment due in September."

Congress, which last week ended a vitriolic debate about the U.S. government's debt levels and budget deficit, is now in recess until early September.

USPS cut work hours during the quarter by 3.1 percent compared to the previous year, when quarterly net losses were $3.5 billion.

The Postal Service said it lost $5.7 billion during the nine-month period ended June 30, compared to $5.4 billion in the same period of 2010.

In its fourth straight year of declines, the agency had a net loss of $8.5 billion for the 2010 fiscal year.

Despite the overall losses, USPS said shipping and standard mail saw growth in the third quarter, with revenues up 7.3 percent and 1.7 percent respectively. Packaging services revenue rose 3.2 percent.

Postal officials have called for Congress to change the way USPS operates, saying it needs more flexibility to close failing post offices, cut Saturday delivery and raise rates.

The agency is studying about 3,700 of its 32,000 post offices, stations and branches for possible closure. Officials plan to replace post offices by contracting with private retailers to sell stamps, offer shipping and provide other postal services.

(Reporting by Emily Stephenson; Editing by John O'Callaghan)


Ace Gunner
08-08-2011, 08:21 AM
About the Chief Postal Inspector
Guy Cottrell was appointed as the 38th Chief Postal Inspector of the U.S. Postal Inspection Service in July 2010. Chief Cottrell oversees all operations of the Postal Inspection Service, which include National Headquarters offices, 18 field divisions, two service centers, and the National Forensic Laboratory. The offices are staffed by more than 1,400 Postal Inspectors, about 700 Postal Police Officers, and approximately 600 support personnel. Chief Cottrell also serves as Chairman of the Universal Postal Union’s Postal Security Group.

Prior to his appointment, Chief Cottrell served as Deputy Chief Inspector at National Headquarters, where he oversaw all national security programs for the Postal Service. As a native of West Virginia who grew up in New Orleans, Cottrell joined the Postal Service in 1987 when he became a letter carrier there. In 1991, Chief Cottrell became a Postal Inspector at the New Orleans Division, where he investigated internal and external mail theft throughout Louisiana and southern Mississippi.

Since that time, Chief Cottrell has held a number of management positions in major metropolitan areas, including his appointment as Inspector in Charge of the Postal Inspection Service’s Washington field office during the Amerithrax investigation.

In 2008, Chief Cottrell served as Inspector in Charge of the Security & Crime Prevention and Communications Group, where he guided the Postal Inspection Service toward a risk- and management-analysis platform, streamlined security-related programs, and implemented numerous cost-effective and innovative solutions. His group produced security and crime prevention publications and videos, and overhauled the Postal Inspection Service’s external Web site.

Chief Cottrell holds a Bachelor’s degree in Psychology from the University of New Orleans.


maybe they should have hired a biz grad............

08-08-2011, 10:11 AM
Why do we still need the USPS anymore?

E-mail? Fed-Ex? UPS? DHL?

I think we have it covered.

08-08-2011, 10:48 AM
Why do we still need the USPS anymore?

E-mail? Fed-Ex? UPS? DHL?

I think we have it covered.

Well they are generally cheaper, and that works for some folks.