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Howlingwolf
08-06-2008, 03:24 PM
http://hosted.ap.org/dynamic/stories/P/POSTAL_FINANCES?SITE=FLTAM&SECTION=US

Post office posts $1 billion loss



WASHINGTON (AP) -- The Postal Service had a net loss of more than a billion dollars in the third quarter of the fiscal year, the agency said Wednesday.

For the quarter ended June 30, the loss was $1.1 billion, which officials blamed on reduced mail volume in the slowed economy, coupled with rapidly rising transport costs because of high fuel prices.

Operating revenue for the quarter was $17.9 billion, down $437 million, or 2.4 percent, compared with the same period last year.

Operating expenses totaled $19.0 billion, an increase of $178 million, or 1.0 percent, from the third quarter last year.

Total mail volume was 48.5 billion pieces, a 5.5 percent drop from the same period last year.

The agency said its fiscal 2008 year-to-date net loss totals $1.13 billion.

Postage rates went up a penny to the current 42-cent price in May. Another increase is expected next May.

Meanwhile, the post office said on-time delivery reached record highs for all three categories of first-class mail the Postal Service tracks. Overnight service was 97 percent on-time, up from 96 percent the same period last year. Two-day service was 95 percent on-time, up from 93 percent, and three-day service was 94 percent on-time, up from 91 percent last year.

DirtPirate
08-06-2008, 04:57 PM
So much for the PO being the only "profitable" government entity on record... ;) :(

hitech_hick
08-06-2008, 11:19 PM
I read somewhere that for every $.01 increase in fuel cost, it cost the post office $1,000,000 for the year. I suppose that their benefits/pension plans may play a part in the equation as well.


hick

soberups
08-08-2008, 12:38 AM
What really sucks is that the Post Office can undercut private companies (like UPS, which I work for) in the delivery of small parcels because they have a monopoly on the delivery of first class mail and can siphon the profits from that portion of their operation to subsidize the delivery of parcels. This gives them an unfair competitive advantage. They can charge whatever they want for a stamp and you the customer have no other choice. I know UPS didnt lose a billion last year, we posted a healthy profit and arent expecting the taxpayers to bail us out of anything.