USPS reports major quarterly losses, remains hopeful
The U.S. Postal Service recently reported a $5.2 billion quarterly loss and announced it will likely exhaust its credit line in coming months. The government agency began reporting quarterly financials in 2007, according to the Wall Street Journal, and the latest report is the largest loss since then. Losses for the same quarter one year ago totaled $3.1 billion.
However, the USPS remains hopeful and advises its customers against worrying about the future of mail delivery.
"We will do everything we need to do to make sure the mail is delivered," said Postmaster General Patrick Donahoe. He also acknowledged that the USPS may not be out of the danger zone for a while - at least until Congress passes a postal-overhaul bill. Donahoe also guaranteed payment to all USPS employees and "critical vendors" despite financial difficulties.
The $5.2 billion quarterly loss may be partially attributed to declining volumes of first-class mail and direct mail advertising campaigns. However, it is expected that forthcoming election mail and holiday advertisements and deliveries could recoup some of the lost profit.
Businesses planning direct mail campaigns should prepare for busy months later this year and take advantage of empty mailboxes with less direct mail competition than usual. Creating a unique campaign using web-to-print materials that portray a business message may be the key in getting more customers' attention before the influx of holiday and election mail.