USPS announces loss, looks to Congress for reform
The U.S. Postal Service announced it ended the 2012 fiscal year with a net loss of $15.9 billion, compared to a net loss of $5.1 billion for the same period last year. However, USPS officials pointed to two required payments to fund retiree health benefits that the USPS defaulted on that amount to $11.1 billion, or 70 percent of the net loss, as the source of financial hardship. Businesses that utilize USPS services can still depend on it for accurate postal mailing software.
Moving forward, the USPS has put the onus on Congress to help rectify the economic situation, saying it needs more flexibility to manage the business and new legislation to help it return to long-term stability.
“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 Patrick Donahoe, postmaster general. "We continue to do our part to grow revenue and reduce expenses by making our operations more efficient and by providing our customers with new and expanded services to meet their mailing and shipping needs."
However, all news was not bad news for the USPS, as it announced its package service had grown by $926 million, an 8.7 percent increase from 2011.
"Our productivity grew to a record level as we captured cost savings and improved productivity for the 13th straight quarter," said Joseph Corbett, chief financial officer for the USPS.