WATCH: With deadline looming, COVID-19 aid talks continue, By Ricardo Alonso-Zaldivar, Associated Press, By Lorne Cook, Raf Casert, Associated Press, By Heather Hollingsworth, Associated Press. To become financially stable, the Postal Service is also urging Congress to provide it relief from the mandate to prefund retiree health benefits. The United States Postal Service reported Feb. 9 “controllable income” of $522 million for the first quarter of fiscal year 2017, which ended Dec. 31. The control of its operating cost structure less so. The Postal Service reported a loss of $2.7 billion for the fiscal year that ended Sept. 30. Congress abolished the tottering old Post Office Department in […] Hope Yen, Associated Press The U.S Postal Service reported a third-quarter loss of more than $500 million. Analysts have cheered the Postal Service’s promise in the digital age. On August 9th, 2019, the United States Postal Service (USPS) released its latest financial report for the third quarter of fiscal year (FY) 2019 and, following previous patterns, the outlook is dire. A look at the revenue side of the ledger reveals why. The past fiscal year yielded a $1.2 billion operating profit for the U.S. Postal Service reported a financial loss Tuesday for the 11th straight year, citing declining mail volume and costs of its pension and health care obligations even as it predicted another strong holiday season of package deliveries. U.S. Thank you. WATCH LIVE: National Hanukkah Menorah Lighting takes place in Washington, D.C. European Union strikes deal on landmark budget, virus recovery fund. However, even if the uncontrollable losses are removed from the net loss calculation, the USPS still ran a $3.4 billion deficit for FY 2019. The answer is both yes and no. Please check your inbox to confirm. Benefits are not the only issue. WASHINGTON — The beleaguered U.S. Hope Yen, Associated Press. The Postal Service’s overall profit for the quarter was $1.4 billion. A report by the USPS inspector general hinted that the USPS might declare that sum as a loss. Without help, “our financial results will continue to deteriorate and likely at an accelerated rate,” said Postmaster General Megan J. Brennan. In the most recent quarter, the USPS lost $2.2 billion on $17.6 billion of revenue. The commission might limit how high prices could go, but the cost of a first-class stamp could jump. Others have looked at how many post offices are within five miles of one another. The battle over the current financial state of the USPS is, among its most important aspects, whether millions of Americans can vote by mail. The U.S. When Postal Service Losses Began. Postal Service lost $15.9 billion its 2012 fiscal year. To some extent, the USPS has been dragged under financially in ways private sector companies would not be. Postal Service’s financial straits could disrupt daily mail delivery, Postal Service may get more freedom to raise stamp prices, Dog attacks of U.S. postal workers highest in three decades, WATCH LIVE: FDA advisers consider Pfizer COVID-19 vaccine for emergency authorization, WATCH: Trump’s chief virus aid negotiator sees ‘a lot of progress’, 3 ways that the U.S. population will change over the next decade, One-day U.S. deaths top 3,000, more than D-Day or 9/11, WATCH: With deadline looming, COVID-19 aid talks continue, CDC official says she was ordered to delete an email suggesting attempted interference by Trump administration, probe finds. And Congress has not given that permission and is unlikely to do so. Congressional Democrats want to pass legislation that could give the USPS $10 billion of support now and $15 billion over the next several years. The postal service is a not-for-profit, self-supporting agency that covers its expenses through postage (stamp use in the United States started in 1847) and related products. The USPS reported a loss of $2.3 billion loss in the most recent quarter, with pre-funding health-care retiree obligations as a major factor. Excluding losses so far this year, the USPS last had a surplus in 2006. The facts in this publication may be reproduced for the purpose of stating the fact itself, and in a business, informational, academic context and the like, and in the body of text discussing factual subject matter relevant to the fact being presented. Postal Service says it lost $2.2 billion in the three months that ended in June as the beleaguered agency — smacked by the coronavirus pandemic — … The 2017 loss came after a double-digit increase in package delivery was unable to offset drop-offs in letter mail, which makes up more than 70 percent of total postal revenue. Excluding losses so far this year, the USPS last had a surplus in 2006. Amazon annual/quarterly gross profit history and growth rate from 2006 to 2020. Mail volume is sliding . There have been attempts to measure how many post offices there need to be by population count. Last month the Postal Service reported a loss of $2.2 billion for the second quarter of 2020. “We cannot generate enough revenue or cut enough costs to pay all of our bills.”. USPS has lost $69 billion over the past 11 fiscal years—including $3.9 billion in fiscal year 2018. For more information about United States Postal Service financial … © 1996 - 2020 NewsHour Productions LLC. Postal Service turned a profit in a financial quarter for the first time in five years, though President Obama still proposed the agency slash 12,000 employees in his fiscal 2017 budget. It’s not known by how much. Much of Congress wants to give the USPS the capital it needs to operate at its traditional level of service. Congress is the key to a reduction is post office locations. If you are wondering whether this is news you’re already heard, it is. “These numbers are beyond troubling,” said Art Sackler, manager of the Coalition for a 21st Century Postal Service, a broad trade group that includes mailers such as Amazon and the National Retail Federation. In its last complete fiscal year, the USPS had 496,934 career employees. Internal streamlining and delivery slowdown Postal Facts 2020 provides the public with information about the Postal Service. It cannot cut these benefits without congressional approval. For the first nine months of its fiscal year, it lost $7.4 billion on $54.8 billion. Postal Service lost $8.8 billion in fiscal 2019, more than doubling its losses from the previous year. All Rights Reserved. The USPS has been running deficits for years. The massive overhang of benefit costs has been of its control. “The Postal Service continues to win e-commerce customers, grow our package delivery business and increase market share,” Brennan said, attributing its strength in part to affordable pricing compared to rivals UPS and FedEx. Mail volume fell by roughly 5 billion pieces, or 3.6 percent, as people in the digital age rely more on email for online bill payments. According to an official report on November 15, 2012, the U.S. Learn more about Friends of the NewsHour. Dec 08 Still, its parcel success hasn’t translated to profits. Using the deficit created by this requirement as an excuse, the USPS board of governors is closing distribution centers, cutting worker hours, eliminating delivery routes, and slashing jobs. Between the fiscal year of 2004 and 2019, annual revenue of the U.S. Photo by Andrew Harrer/Bloomberg via Getty Images. However, the last year the Postal Service recorded any profit was 2006, and its cumulative losses since then totaled $83.1 billion as of March 31. Despite a solid 1.5 percent rise in revenue compared to last year, USPS reported an operating loss of $1.951 billion. https://www.pbs.org/newshour/nation/u-s-postal-service-marks-11-straight-years-of-financial-loss, “Our financial results will continue to deteriorate and likely at an accelerated rate.”, U.S. Dec 10 The Postal Service’s 2018 Fiscal Year financial report shows the Postal Service’s underlying business strength while also indicating the need to address external matters beyond USPS control. The New York Times reports. This past year, USPS reported a $2.7 billion loss. USPS records its first quarterly net profit in five years, but warns losses are not over. P.L.111-68 had a net impact of a $4.0 billion reduction of expenses in 2009. Legislation in 2006 required the Postal Service to fund 75 years’ worth of retiree health benefits, something that neither the government nor private companies are required to do. Net loss for fiscal year 2019 was $8.8 billion, and increase of $4.9 billion compared to last year. The Postal Service also owes $11 billion to the … For the first three months of 2018, the US Postal Service reported a $1.3 billion loss, up from $562 million a year ago. But the inspector general also said because the USPS “does not have the authority to change legislation,” it “must work with Congress” to secure any missing funds. Meanwhile, the plan to eliminate Saturday service is dead. Read The USPS’s net loss widened from a year ago, from $1.49 billion a year ago to $2.3 billion this year, for a total loss of $5.9 billion for the year. To avert bankruptcy, the post office has defaulted on the multibillion-dollar health prepayments each year since 2012. The U.S. Gross profit can be defined as the profit a company makes after deducting the variable costs directly associated with making and selling its products or providing its services. But this was not how the Postal Service was supposed to work. The White House wants to control losses, which means its ability to deliver ballots on time will be deeply compromised. Jan 02 * P.L.112-33 had the net impact of a $5.5 billion reduction of expenses in 2011. In the fiscal year of 2020, the USPS … Postal Services (USPS) fluctuated around 70 billion U.S. dollars. Subscribe to ‘Here's the Deal,’ our politics newsletter. It has another 136,174 non-career employees. It has 31,322 USPS-managed retail post offices. The Postal Regulatory Commission will issue a decision in the coming weeks that could give the Postal Service more flexibility to raise prices beyond the rate of inflation, marking the biggest change in its pricing system in nearly a half-century. Since then, it has lost $77.8 billion. Clearly, there is also a longer-term financial structure problem that has to be addressed as well. This reduction allows the Postal Service to continue to reduce interest costs. One-day U.S. deaths top 3,000, more than D-Day or 9/11, Read More recently, it began a pilot program this holiday season to provide cheap next-day service with packages delivered Sundays to people’s homes. The U.S. The United States Postal Service has lost $51.7 billion between 2007 and 2014 and has not earned a profit since 2006, according to a report from the Tax Foundation. Since then, it has lost $77.8 billion. Not quite, at least not in the way that accountants normally calculate profit and loss. WATCH: Trump’s chief virus aid negotiator sees ‘a lot of progress’, Read 3 ways that the U.S. population will change over the next decade, Read The United States Postal Service first began moving the mail on July 26, 1775, when the Second Continental Congress named Benjamin Franklin as the nation's first Postmaster General. That was better than a $5.6 billion loss in the prior year but was mainly due to fluctuations in interest rates that reduced workers’ compensation expenses. A look at the revenue side of the ledger reveals why. WATCH LIVE: FDA advisers consider Pfizer COVID-19 vaccine for emergency authorization, Read “No other shipper delivers as many e-commerce packages to the home.”. It pleaded for more freedom to raise stamp prices to help keep pace with consumer demand for ever-quicker deliveries from online shopping. Postal Services Seeks Changes. The Postal Service has been identifying ways to cope with the decline of traditional mail over the years, only to have companies — and ultimately Congress — object. Dec 10 Mail carrier Marissa Ogletree delivers mail in the historic Pullman neighborhood in Chicago November 20, 2014. A USPS letter carrier in the East Atlanta post office. Postal Service (USPS) crates sit on the floor at the Brookland Post Office in Washington, D.C., U.S. No customer data was stolen in a recent data breach, USPS officials say. Among the questions that have been asked, but never fully answered by the USPS or any large outside research organization, is whether this number of employees and this number of postal offices are needed to deliver mail in as timely a fashion as it has for decades. The U.S. Lower volume means lower revenues to support the fixed commitment to deliver to every address once a day, six days a week. Few if any Congress members want to have post offices in their districts closed. USPS released its financial report for 2017 showing a $2.7 billion loss. Dec 10 In accepting the position, Franklin dedicated his efforts to fulfilling George Washington's vision. 1 When Congress created the Postal Service to replace the old Post Office Department, it mandated that the new agency support itself through its own revenues, rather than relying on federal appropriations. The Postal Service, an independent agency, is trying to stay financially afloat as it seeks to invest billions in new delivery trucks to get packages more nimbly to American homes. The results marked the 13th consecutive year … The Postal Service reported a loss of $2.7 billion for the fiscal year that ended Sept. 30. So, is the USPS losing something it could have controlled? P.L.109-435 had a net impact of a $6.8 billion increase of expenses in 2007 ($8.4 billion in additional retiree health benefits less $1.6 billion in CSRS savings). Postal Service (USPS) is in great financial trouble, and its ability to deliver ballots in the upcoming election has turned to some extent on the fact. USPS’s total unfunded liabilities and debt ($143 billion at the end of fiscal year 2018) have grown to double its annual revenue. While the ballot controversy is new, the financial problems are not. The price of a first-class stamp, now 49 cents, is slated to increase by one penny in January because of inflation. Early History of the U.S. Insufficient cost savings: The savings from USPS cost … The basic issue is that revenue … Revenue came to $69.6 billion, down from $71.5 billion last year. “We continued to make progress in the fiscal year in containing expenses that are under management’s control,” said USPS … Source: Davel5957 / Getty Images 10. It operated at a loss in the first couple years of the 21st century, but by 2003, it was back to operating at a profit. Over the past five years, USPS has cut 94,000 positions. The management of the USPS has argued persuasively for years that is financial viability is severely damaged by payments that must be made to pension plans and retirement health plans. The job loss alone is a travesty, but a bigger principle is at stake. Revenue from mail services, the most profitable part of revenue has been hit by the spread of COVID-19 and a drop in “secular” mail services were the primary reasons for the large losses. Controllable loss for the year was $3.4 billion, an increase of $1.5 billion compared to the prior year. The net loss for the year was $8.8 billion, an increase in net loss of $4.9 billion compared to 2018. Claim: The U.S. economic downturn due to the COVID-19 coronavirus pandemic in early 2020 was forcing the United States Postal Service to close. “There are 7.5 million private sector jobs that depend on the postal system, and these jobs are at risk unless Congress takes action on postal reform.”, Left: Financial history summary. With the holiday season approaching, Brennan said, the Postal Service added hours to include early morning and evening package deliveries and was expanding service on Sundays. Why Does the US Postal Service Lose Money? Subscribe to Here’s the Deal, our politics newsletter for analysis you won’t find anywhere else. Postal Service . Trump accuses Amazon of scamming USPS 01:55 Washington (CNN Politics) The US Postal Service reported a loss of $3.9 billion for fiscal year 2018, despite growth in its shipping and packaging business. The revenue side of the ledger reveals why fluctuated around 70 billion U.S. dollars to to... The United States Postal Service is also urging Congress to provide it relief from the previous year this reduction the. Look at the revenue side of the ledger reveals why Washington 's.., USPS reported an operating loss of $ 2.2 billion for the first nine months of its fiscal year the. $ 11 billion to the … the U.S rate from 2006 to 2020 Press. 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