NALC: USPS 3rd Quarter financial results reflect impact of stamp prices rollback

USPS reports Fiscal Year 2017 3rd quarter results

YTD-USPS-Analysis-8-2017-UpdatedThe U.S. Postal Service has released a report on its financial results for the third quarter of Fiscal Year 2017, covering April 1-June 30.

Here is NALC President Fredric Rolando’s statement on the report:

Today’s financial report shows the underlying business strength of the U.S. Postal Service while also indicating the need to address external matters beyond USPS control.

The quarterly operating loss of $587 million puts the Postal Service in the red by $55 million three-quarters through the 2017 Fiscal Year. These figures reflect the impact of last year’s rollback in stamp prices. Without the two-cent reduction in stamp prices, this quarter’s revenue would be $500 million higher and the year-to-date revenue would be $1.5 billion higher.

With the original stamp price, the year-to-date figures would show an operating profit of more than $1.4 billion. The figures would be on a par with those of the past three years, which had a combined operating profit of $3.2 billion. We would be talking about a government entity producing an impressive operating profit through earned revenue.

The April 2016 rollback in stamp prices was the first since 1919, and it makes little financial sense because the Postal Service already has the industrial world’s lowest rates. The rollback reduces revenue at USPS―which gets no taxpayer money―by $2 billion a year.

Fortunately, the Postal Regulatory Commission (PRC) is in the midst of a legally mandated review of the postage rate-setting system. The PRC has said it intends to issue a decision this fall. At present, USPS is constricted in its ability to adjust rates by no more than the Consumer Price Index (CPI), but the CPI is an economy-wide measurement of consumer goods and services that doesn’t fit a transportation and delivery provider. The PRC has the ability to correct this mismatch and relieve the resulting financial pressure.

Meanwhile, Congress should address the pre-funding burden it imposed in 2006, which requires USPS―alone among all public and private entities―to pre-fund future retiree health care benefits decades into the future. This produces an onerous annual burden of billions of dollars.

Addressing these external financial burdens would allow USPS―which is based in the Constitution and which enjoys broad public and political support―to continue providing Americans and their businesses with the industrial world’s most affordable delivery network.

source: NALC

13 thoughts on “NALC: USPS 3rd Quarter financial results reflect impact of stamp prices rollback

  1. So Fred, the USPS is losing $ because of stamp prices now? I’m pretty sure we have been back to $.49 since the start of the 3rd quarter. But spin it anyway you want.

  2. prefunding? what prefunding? they are in default on this prefunding con, how do you claim prefunding is the cause of losing Billions of Dollars when they have not paid a dime into it since 2009. 8 years and no money into prefunding, yet someone in the comment section always tries to bring it up. it is a fake, non issue. just more fake news on his part. Billions of Dollars lost but the 110,000 po mismanagers (7000 at Headquarters alone)never miss a payroll. cut them by 75% you will not notice they are gone. President Trump you need to appoint YOUR Postmaster General!

  3. So capitalism works while other systems don’t work ?why is it that business is allowed to pay it’s employees as little as possible, while the tax payer must pay for food stamps, Medicaid, earned income tax credits, welfare, corporate tax breaks, and tax abatement? Business isn’t self reliant as should be the case. They suck off the public! And if capitalism was so great, businessmen would share the fruits of labor. Instead capitalists hoard the wealth for themselves. In Wisconsin Foxconn wants to build a factory on wetlands and have the tax payers pay the three billion dollar cost. In true capitalism, the corp. would pay the cost, not the sucker tax payer! The factory will cost every citizen of Wisconsin $ 19, 000 per year for 24 years. Capitalists just love the saying ” survival of the fittest” said so long ago by Herbert Spencer. Capitalists is just another word for greed!

  4. this company union dope Rolando knows all about losing money because of the rollback of the stamp price…………..but goes all retodd when telling you a 1% raise is great when true inflation is 5%-6%…………looks like IOD Brennen’s toady to me! let me guess Rolando has a MBA in Harvard Business School…..who knew? ROFLMFAO!!!!!!!!!!!!!!!!!!!!!!!!!

    • Office Of Budget and Management, former PMG Donahoe, and Congressional Members on the House and Senate Finance Committee’s (Democraps & Rethuglians) have all said the pre-funding argument is a false red herring. the fact is the US Postal Circus is losing $Billions each month (over 120 Billion since 2009) because of low IQ mismanaging postal Bureaucrats-period.(99% have no college)(and the company unions who run cover for them) it is now a current story on this site, they just lost $2.1 Billion in last 90 days on 16 odd billion of revenue=$8.4 Billion for the year. Question: what American Companies in the Fortune 500 (or Fortune 5000) have lost over $120 Billion since 2009 and are still in business? Answer: None! my advice to postal workers is pay down debt, do not make major purchases unless with cash, and find finance advisor Dave Ramsey on your radio dial……..it is not going to end well for the US Postal Circus in the next 5 years! that you can take to the bank.

      • RICH? some of the richest people are 1% Democrats in the House and Senate. Pelosi worth 400 million. Feinstein 600 million (with help from husband Blum and No Bid Postal Real Estate Contract Scam)

  5. It is way past time to end the forced pre payment of health care costs! Why is it that the Postal service, and only the Postal Service, must pre pay the cost of health care? Spread the cost to every employer in America! Force every employer with that obligation. The right wing screams about “subsidizing” Postal workers health costs. While every American subsidizes businessmen’s employee costs.The earned income tax credit, food stamps, Medicaid, welfare, and many other programs to hand over money to business. Business depends on their wealthfare! Citizens can’t receive a hand out, however it’s necessary that the rich receive their free money. The rich live to hoard their money.

  6. this dolt, President of the in-house company union, running point for his postal mismanagement masters……….is a total POS. 1% raise and the sheeple voted for it. this place is just a dog chasing its tail……I just wish someone would put it out of its misery and let UPS, FDX, AMZN, WMT, TGT carve it up like a Thanksgiving turkey. socialism/communism does not work. capitalism does. merit based system trumps nepotism system any day of the week.

    • Jeff, what the nalc says is true. we need to be relieved of the prefunding burden and stamps need to reflect a more reasonable price. It’s almost 80 cents to mail a first class letter in Germany. However, I don’t agree with the Postal Service’s position on benefits.

      • He works for the dues paying members. Not the USPS. Every speech he gives parrots the ones given by the USPS.

        How about a speech about mgmt. bonuses, waste, corruption, theft, etc. ?
        Whose side is he own after all ? Never hear a peep from him about that.

        Or anything craft oriented.

      • Plus, what’s his answer to relieve the pretending burden ? Do away with it ?

        Nope. Instead wants to force us into a postal run health plan, and force all retirees to pay an additional $130/month for health care.

        Friends like him…..

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