USPS spotlights $1.9 billion in losses
The U.S. Postal Service completed the second quarter of its 2013 fiscal year with $1.9 billion in net losses. The service said it continues to seek avenues to increase its revenue under current legislation, but continues to come up short. Companies might see a hike in USPS prices, making address correction essential to direct mail marketing budgets.
According to the USPS, the financial losses between Jan. 1 and March 31 highlight the need for comprehensive legislation that provides the service with a renewed business model to stay up to date with the current marketplace.
Patrick Donahoe, postmaster general and chief executive officer for USPS, believes the second quarter results demonstrate the increasing need for the federal government to allow USPS to institute its five-year business model.
"To return the Postal Service to solvency requires a comprehensive approach, which is reflected in our updated Five-Year Business Plan," Donahoe said. "The major elements of the plan must be pursued and executed within a short window of opportunity to avoid unsustainable losses and potentially becoming a long-term burden to the American taxpayer."
The service has already reached its debt limit of $15 billion and expects to continue defaulting on payments owed to employee health benefit funds, which would severely hamper the agency's efforts to reach $20 billion in annual savings by 2016.