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Started By
Message
U.S. Postal Service loses $2 Billion in 2nd Quarter
Posted on 8/11/14 at 11:06 pm
Posted on 8/11/14 at 11:06 pm
quote:
WASHINGTON (Reuters) - The U.S. 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.
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.
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.
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. Shipping and package revenue jumped 6.6 percent, compared with the same period last year.
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. The rate increase is a temporary measure to mitigate the effects of the recession.
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.
USPS blames much of its financial troubles on a 2006 mandate to stow away billions of dollars for its future retirees' healthcare. 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.
LINK
Posted on 8/11/14 at 11:10 pm to Sentrius
So the Postal Service was doomed by guaranteed payouts on retirement. This should be cut out of the argument over whether the USPS is profitable. It can't pay for the bad politics of the 80's and 90's.
Posted on 8/11/14 at 11:11 pm to Sentrius
quote:
USPS blames much of its financial troubles on a 2006 mandate to stow away billions of dollars for its future retirees' healthcare. 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.
I agree that the Postal Service Act of 2006 isn't a great piece of legislation, but I'm afraid the USPS is going to always be fighting a losing battle in this day and age. I think the same piece of legislation limits other methods of raising funds, like running an internet cafe. I think having it run like a private company, or privatizing it completely like German did with Bundepost turning into DHL might be a good option.
Posted on 8/11/14 at 11:15 pm to crazy4lsu
It needs to be privatized. Badly.
Posted on 8/11/14 at 11:16 pm to mmcgrath
quote:
So the Postal Service was doomed by guaranteed payouts on retirement. This should be cut out of the argument over whether the USPS is profitable. It can't pay for the bad politics of the 80's and 90's.
Actually the 80s and 90s saw most of Fed pensions and health care payments change radically. The Postal Service did not change with them. They remained with the best retirement pension and health care benefits of any federal workers.
Posted on 8/11/14 at 11:17 pm to mmcgrath
I'm honestly amazed they don't lose more money. USPS is a subsidy for jobs with good benefits and also for rural delivery.
With that comes tons of restrictions and political BS. It's not like they can just raise the price as needed and if they raise it too much then FedEx could beat the price. So, yeah, they screwed.
I suspect it'll never be abolished though. Dems will want to keep it and the Republicans will want to keep it so they can get lobbied to contract it out.
With that comes tons of restrictions and political BS. It's not like they can just raise the price as needed and if they raise it too much then FedEx could beat the price. So, yeah, they screwed.
I suspect it'll never be abolished though. Dems will want to keep it and the Republicans will want to keep it so they can get lobbied to contract it out.
Posted on 8/11/14 at 11:18 pm to wfeliciana
And it is not sustainable. We have to swallow our pride and admit that we were completely irresponsible with government pension promises.
Posted on 8/11/14 at 11:18 pm to Sentrius
quote:
Message Posted by Sentrius It needs to be privatized. Badly.
It already is. You are more than welcome to use fedex or UPS. Government contracts are the worst. Just abolish it.
Posted on 8/11/14 at 11:22 pm to HailHailtoMichigan!
quote:
And it is not sustainable. We have to swallow our pride and admit that we were completely irresponsible with government pension promises.
I agree with this as it relates to the Postal Service. I can't speak to state pension plans but I do know about Feds. Most people have some incorrect assumptions about them. They really are very sustainable. The fed plan the TSP is very much like any 401(k) and they do a great job of managing those investments.
Posted on 8/11/14 at 11:26 pm to wfeliciana
quote:I think the real pension crisis is occurring at the state and city level. Detroit is a good example, but Chicago has a looming problem, as well.
wfeliciana
Posted on 8/11/14 at 11:33 pm to HailHailtoMichigan!
quote:
eal pension crisis is occurring at the state and city level
I've got to admit when I heard what retired firefighters/police get in NJ and NY I was amazed. I can't imagine how the states can sustain that.
Posted on 8/11/14 at 11:35 pm to Sentrius
quote:
U.S. Postal Service loses $2 Billion in 2nd Quarter
But in a good way.
I just add that after bad news to make it better.
Posted on 8/11/14 at 11:47 pm to the808bass
Posted on 8/11/14 at 11:56 pm to Sentrius
But the government provides services no one else can or would be willing to!!!111!!
This post was edited on 8/11/14 at 11:57 pm
Posted on 8/12/14 at 12:08 am to Eurocat
Know where I stopped reading?
"It can physically connect..."
Know what else does that? The interwebs.
"It can physically connect..."
Know what else does that? The interwebs.
Posted on 8/12/14 at 12:16 am to Sentrius
They are going to lose more money if they don't find my new LSU dress I bought for 8/30. This is why I usually insist a business ships UPS or FedEx
Posted on 8/12/14 at 5:02 am to Sentrius
quote:
U.S. Postal Service loses $2 Billion in 2nd Quarter
just as Congress intended
Posted on 8/12/14 at 6:48 am to Sentrius
Let the Post Office die....
Posted on 8/12/14 at 7:13 am to Stingray
UPS and Fed Ex do a better job. Close it down and split the country down the middle.
Posted on 8/12/14 at 7:14 am to Sentrius
Are you a news service? Why the cut and paste and link without your own opinion or comment?
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