The Postal Service has released its financial figures for the third quarter of Fiscal Year 2013, which covers April, May and June. “The latest quarterly report makes clear that its finances are rebounding strongly as the U.S. economy improves,” NALC President Fredric Rolando said. “The agency would have reported a profit of $660 million absent the $1.4 billion payment it was charged for pre-funding future retiree health benefits—a bill no other company or agency in the country is required to pay.
Postal finances are improving as the economy improves. Operating revenue grew by 3.6 percent in the third quarter compared to the same period last year, and expenses were down.
Shipping and package delivery revenue is increasing dramatically, up 8.8 percent this quarter compared to the same period last year, and up 7.5 percent on a YTD basis. Revenue from shipping and package delivery has steadily increased over the past three years. The growth resulting from an exploding e-commerce sector is increasingly offsetting the negative impact of online communication and bill payment on First Class mail.
If not for pre-funding, USPS would have reported a profit through the third quarter this year. In 2006, Congress passed a law mandating that the Postal Service “pre-fund” future retiree health care decades in advance on an accelerated schedule. From 2007 to 2012, these payments accounted for nearly 80 percent of the Postal Service’s reported losses, and if not for pre-funding, the Postal Service would have reported a $660 million profit in the third quarter of FY 2013. Year-to-date, without pre-funding, USPS also would be profitable.
This mandate costs the Postal Service billions each year. USPS has already put aside almost $50 billion to cover the health premiums of its future retirees for decades. The Postal Service is the only organization, company or agency in the country required by law to pre-fund retiree health benefits.
The solution is obvious – eliminate mandatory pre-funding and free the Postal Service to take full advantage of the growth opportunities offered by the digital era.
Postal finances are improving as the economy improves. Operating revenue grew by 3.6 percent in the third quarter compared to the same period last year, and expenses were down.
Shipping and package delivery revenue is increasing dramatically, up 8.8 percent this quarter compared to the same period last year, and up 7.5 percent on a YTD basis. Revenue from shipping and package delivery has steadily increased over the past three years. The growth resulting from an exploding e-commerce sector is increasingly offsetting the negative impact of online communication and bill payment on First Class mail.
If not for pre-funding, USPS would have reported a profit through the third quarter this year. In 2006, Congress passed a law mandating that the Postal Service “pre-fund” future retiree health care decades in advance on an accelerated schedule. From 2007 to 2012, these payments accounted for nearly 80 percent of the Postal Service’s reported losses, and if not for pre-funding, the Postal Service would have reported a $660 million profit in the third quarter of FY 2013. Year-to-date, without pre-funding, USPS also would be profitable.
This mandate costs the Postal Service billions each year. USPS has already put aside almost $50 billion to cover the health premiums of its future retirees for decades. The Postal Service is the only organization, company or agency in the country required by law to pre-fund retiree health benefits.
The solution is obvious – eliminate mandatory pre-funding and free the Postal Service to take full advantage of the growth opportunities offered by the digital era.
– See more at: http://deliveringforamerica.com/latest-news/u-s-postal-service-third-quarter-results-clear-signs-of-financial-improvement/#sthash.Q35uX1kS.dpuf
Postal finances are improving as the economy improves. Operating revenue grew by 3.6 percent in the third quarter compared to the same period last year, and expenses were down.
Shipping and package delivery revenue is increasing dramatically, up 8.8 percent this quarter compared to the same period last year, and up 7.5 percent on a YTD basis. Revenue from shipping and package delivery has steadily increased over the past three years. The growth resulting from an exploding e-commerce sector is increasingly offsetting the negative impact of online communication and bill payment on First Class mail.
If not for pre-funding, USPS would have reported a profit through the third quarter this year. In 2006, Congress passed a law mandating that the Postal Service “pre-fund” future retiree health care decades in advance on an accelerated schedule. From 2007 to 2012, these payments accounted for nearly 80 percent of the Postal Service’s reported losses, and if not for pre-funding, the Postal Service would have reported a $660 million profit in the third quarter of FY 2013. Year-to-date, without pre-funding, USPS also would be profitable.
This mandate costs the Postal Service billions each year. USPS has already put aside almost $50 billion to cover the health premiums of its future retirees for decades. The Postal Service is the only organization, company or agency in the country required by law to pre-fund retiree health benefits.
The solution is obvious – eliminate mandatory pre-funding and free the Postal Service to take full advantage of the growth opportunities offered by the digital era.
– See more at: http://deliveringforamerica.com/latest-news/u-s-postal-service-third-quarter-results-clear-signs-of-financial-improvement/#sthash.Q35uX1kS.dpuf
Postal finances are improving as the economy improves. Operating revenue grew by 3.6 percent in the third quarter compared to the same period last year, and expenses were down.
Shipping and package delivery revenue is increasing dramatically, up 8.8 percent this quarter compared to the same period last year, and up 7.5 percent on a YTD basis. Revenue from shipping and package delivery has steadily increased over the past three years. The growth resulting from an exploding e-commerce sector is increasingly offsetting the negative impact of online communication and bill payment on First Class mail.
If not for pre-funding, USPS would have reported a profit through the third quarter this year. In 2006, Congress passed a law mandating that the Postal Service “pre-fund” future retiree health care decades in advance on an accelerated schedule. From 2007 to 2012, these payments accounted for nearly 80 percent of the Postal Service’s reported losses, and if not for pre-funding, the Postal Service would have reported a $660 million profit in the third quarter of FY 2013. Year-to-date, without pre-funding, USPS also would be profitable.
This mandate costs the Postal Service billions each year. USPS has already put aside almost $50 billion to cover the health premiums of its future retirees for decades. The Postal Service is the only organization, company or agency in the country required by law to pre-fund retiree health benefits.
The solution is obvious – eliminate mandatory pre-funding and free the Postal Service to take full advantage of the growth opportunities offered by the digital era.
– See more at: http://deliveringforamerica.com/latest-news/u-s-postal-service-third-quarter-results-clear-signs-of-financial-improvement/#sthash.Q35uX1kS.dpuf
Click here to read a fact sheet about the third quarter report.
Delete 6 day delivery as it is a total wasted expense.
High distribution cost delivering advertising bulk mail. Work hour cost and vehicle fuel expense is a waste as Americans could care less as to receiving a GEICO ads. A real money loosing concept endorsed by politics, management and craft unions as well as various paid pressure groups that have political influence but lack common sense.
Rolando is just being master of the obvious and a Pollyana. While it’s true the pre-funding requirement accounts for 80% of the USPS “loss” this is still just happy talk. None of the public knows and most of the Republican Tea Baggers could give a rat’s ass about that fact. Issa has already spun the cause as gross mismanagement and greedy public unions and the wingnut brigade just eats this crap up as gospel truth. The real truth is technology (email, Twitter, pay bills on line) is going to continue to shrink and devastate 1st class volume, the real revenue generator of USPS. BBM is a push (due to all the discounts given away to direct mailers, and an increase in parcels is not going to save the day. Neither is delivering booze. 50 million in more revenue is a drop in the bucket to a $60 billion annual budget. Get real. Digital is killing newspapers, printed books, the music business,etc. What makes NALC think it’s not going to impact USPS? That giant sucking sound you hear is USPS shrinking down to less than 400K employees from a peak of 850K just 7 years ago. One can engage in righteous indignation until the cows come home but it’s not going to change the reality on the ground. Congress is captive by the special interests / lobbyists that fork over huge sums to their re-election campaigns – the Direct Mailers Assoc.,FedEX, USPS and these phony front groups funded by the Koch Brothers and Carl Rove. To quote old Tip O,Neil, money is the mother’s milk of politics. These are the only things Congress will respond to : money and votes. Everything else is bullshit to them, They will just glad hand you and and play the game. “Thank you for your letter of — blah blah blah….a canned letter written by a staffer.
So buckle up, it’s going to be a bumpy ride. The no layoff clause won’t mean much if they trash the industry you work in.
Have you guys been watching the US Treasury Bonds? Huge increase in a month. 4.4% rise in rates in the past 48 hours. A like rise on the DOW would be 648 points. As interest rates rise everything else falls. Since the fed is going to stop or slow the buying process interest rates will really pop.
USPS finances show 3rd quarter ‘rebound’……CAN YOU READ ISSA?
First quarter showing profit, after how many months of reported big losses. Hope this trend continues, but I think getting to excited about one quarter of good news may be premature. Maybe an indication that the actions of HQ are heading us in the right direction. Awful easy to be on the negative band wagon about management. I dare say if the unions were given their way and allowed to make the decisions to lead the PO into the future, they’d be find themselves having to make some of the same decisions that management has had to make. Obviously the lay of the land for us have changed over the years. We can’t pretend that everything is fine and the statuesque will allow us to survive.
You 5 dayers are a selfish lot. I like most would love to have my weekends. Especially so when my kids were little and I missed out on so many events. 5 day at what cost? Thousands of our co-workers jobs lost and never coming back. And with the state of our nation and the job market dismal, I don’t want to see those jobs eliminated even if it means I suffer through sucky Saturdays. If being profitable is merely a matter of repealing the unnecessary already overfunded 2006 mandate, shouldn’t that be where all the attention is focused because its the root of the problem?
it sounds like johm long island is not happy with the union maybe he should go work for walmart they are nonunion either that stay home and watch his buddies on fox sounds like that’s were he got so smart from
$660M profit, wow! Donahole and his associates must have big BONUS money.
“If not for pre-funding,USPS would have reported a $660 mil. profit this year”,really? Didn’t Donahoe default on the $1.1 billion prefunding payments?
Well said John long Island and Bkizzle
Captn Jack, make the needed and necessary drastic cuts in mgmt. ranks, and it would be too.
No, instead, their numbers have grown by almost 8%, while craft numbers have been slashed.
Justify that.
Residential delivery should only be 3 days per week. A carrier could carry 1 route m/w/f and another t/t/s with a floater. Close a multitude of plants and small offices and the PO is a money maker.
!00% correct John Long Island.
Cut Saturday delivery and to hell with everything else!!!
It’s embarrassing to be a member of the NALC….The economy is improving…What planet do they live on…The work force is a part time work force. Intrest rates are low so no one but the rich can make any money. They say The stock market is up because the Fed is buying 85 Billion dollars a month worth of bonds. Thats why when people hear about the fed tapering off the Bond buying the market goes down 2 percent….The economy is a disaster and the NALC should be ashamed for saying it is good.. Just sit back and think of what the union tells you and what realy happens in real life. All they want is your 23.44 a pay check so they can get there agenda but in reality they get nothing and keep supporting the Dems. Remember Obama and alot of Democrats support 5 day and the new Health Care, Its both sides not just one. Stop watching MSNBC and OPEN YOUR EYES…Economy is terrible. 5 day here we go
Offer EO to City Carriers. They’ll leave in droves, no layoffs necessary. This is no longer the job it used to be.
Get rid of Saturday delivery and the prefunding! Only thing that’s happening here is we are gaining in the package area nothing else…sometimes numbers talk and more often than not bullsh#t walks!
Shut it down – problem solved.
It is just that simple
Shut it down – problem solved.
It is just that simple.
Isn’t it interesting how postal finances miraculously improve……………..immediately after all the labor contract negotiations are over ?
Postal mgmt = liars and thieves, at all levels.