Source: Davel5957 / Getty Images 10. Hope Yen, Associated Press. According to an official report on November 15, 2012, the U.S. The facts in this publication may be reproduced for the purpose of stating the fact itself, and in a business, informational, academic context and the like, and in the body of text discussing factual subject matter relevant to the fact being presented. Postal Service lost $8.8 billion in fiscal 2019, more than doubling its losses from the previous year. Gross profit can be defined as the profit a company makes after deducting the variable costs directly associated with making and selling its products or providing its services. Few if any Congress members want to have post offices in their districts closed. Among the questions that have been asked, but never fully answered by the USPS or any large outside research organization, is whether this number of employees and this number of postal offices are needed to deliver mail in as timely a fashion as it has for decades. The Postal Service, an independent agency, is trying to stay financially afloat as it seeks to invest billions in new delivery trucks to get packages more nimbly to American homes. The U.S. Claim: The U.S. economic downturn due to the COVID-19 coronavirus pandemic in early 2020 was forcing the United States Postal Service to close. Since then, it has lost $77.8 billion. It has another 136,174 non-career employees. Trump accuses Amazon of scamming USPS 01:55 Washington (CNN Politics) The US Postal Service reported a loss of $3.9 billion for fiscal year 2018, despite growth in its shipping and packaging business. “We continued to make progress in the fiscal year in containing expenses that are under management’s control,” said USPS … “These numbers are beyond troubling,” said Art Sackler, manager of the Coalition for a 21st Century Postal Service, a broad trade group that includes mailers such as Amazon and the National Retail Federation. USPS released its financial report for 2017 showing a $2.7 billion loss. For the first three months of 2018, the US Postal Service reported a $1.3 billion loss, up from $562 million a year ago. Mail volume is sliding . P.L.111-68 had a net impact of a $4.0 billion reduction of expenses in 2009. Postal Facts 2020 provides the public with information about the Postal Service. WATCH LIVE: National Hanukkah Menorah Lighting takes place in Washington, D.C. European Union strikes deal on landmark budget, virus recovery fund. When Postal Service Losses Began. “There are 7.5 million private sector jobs that depend on the postal system, and these jobs are at risk unless Congress takes action on postal reform.”, Left: The results marked the 13th consecutive year … The Postal Regulatory Commission will issue a decision in the coming weeks that could give the Postal Service more flexibility to raise prices beyond the rate of inflation, marking the biggest change in its pricing system in nearly a half-century. One-day U.S. deaths top 3,000, more than D-Day or 9/11, Read The net loss for the year was $8.8 billion, an increase in net loss of $4.9 billion compared to 2018. “The Postal Service continues to win e-commerce customers, grow our package delivery business and increase market share,” Brennan said, attributing its strength in part to affordable pricing compared to rivals UPS and FedEx. Others have looked at how many post offices are within five miles of one another. The price of a first-class stamp, now 49 cents, is slated to increase by one penny in January because of inflation. Benefits are not the only issue. The White House wants to control losses, which means its ability to deliver ballots on time will be deeply compromised. Congress abolished the tottering old Post Office Department in […] Controllable loss for the year was $3.4 billion, an increase of $1.5 billion compared to the prior year. A report by the USPS inspector general hinted that the USPS might declare that sum as a loss. And Congress has not given that permission and is unlikely to do so. WATCH LIVE: FDA advisers consider Pfizer COVID-19 vaccine for emergency authorization, Read Revenue from mail services, the most profitable part of revenue has been hit by the spread of COVID-19 and a drop in “secular” mail services were the primary reasons for the large losses. The answer is both yes and no. Revenue came to $69.6 billion, down from $71.5 billion last year. The massive overhang of benefit costs has been of its control. Postal Services Seeks Changes. Dec 10 Mail carrier Marissa Ogletree delivers mail in the historic Pullman neighborhood in Chicago November 20, 2014. Subscribe to Here’s the Deal, our politics newsletter for analysis you won’t find anywhere else. Postal Service says it lost $2.2 billion in the three months that ended in June as the beleaguered agency — smacked by the coronavirus pandemic — … Read Subscribe to ‘Here's the Deal,’ our politics newsletter. The past fiscal year yielded a $1.2 billion operating profit for the U.S. Postal Service (USPS) crates sit on the floor at the Brookland Post Office in Washington, D.C., U.S. No customer data was stolen in a recent data breach, USPS officials say. The 2017 loss came after a double-digit increase in package delivery was unable to offset drop-offs in letter mail, which makes up more than 70 percent of total postal revenue. The U.S. Photo by Andrew Harrer/Bloomberg via Getty Images. To avert bankruptcy, the post office has defaulted on the multibillion-dollar health prepayments each year since 2012. Still, its parcel success hasn’t translated to profits. The management of the USPS has argued persuasively for years that is financial viability is severely damaged by payments that must be made to pension plans and retirement health plans. “No other shipper delivers as many e-commerce packages to the home.”. Postal Services (USPS) fluctuated around 70 billion U.S. dollars. The U.S Postal Service reported a third-quarter loss of more than $500 million. It’s not known by how much. Last month the Postal Service reported a loss of $2.2 billion for the second quarter of 2020. Financial history summary. The commission might limit how high prices could go, but the cost of a first-class stamp could jump. https://www.pbs.org/newshour/nation/u-s-postal-service-marks-11-straight-years-of-financial-loss, “Our financial results will continue to deteriorate and likely at an accelerated rate.”, U.S. Since then, it has lost $77.8 billion. P.L.109-435 had a net impact of a $6.8 billion increase of expenses in 2007 ($8.4 billion in additional retiree health benefits less $1.6 billion in CSRS savings). The Postal Service also owes $11 billion to the … The United States Postal Service first began moving the mail on July 26, 1775, when the Second Continental Congress named Benjamin Franklin as the nation's first Postmaster General. Mail volume fell by roughly 5 billion pieces, or 3.6 percent, as people in the digital age rely more on email for online bill payments. Not quite, at least not in the way that accountants normally calculate profit and loss. The basic issue is that revenue … A USPS letter carrier in the East Atlanta post office. Postal Service . Postal Service (USPS) is in great financial trouble, and its ability to deliver ballots in the upcoming election has turned to some extent on the fact. Without help, “our financial results will continue to deteriorate and likely at an accelerated rate,” said Postmaster General Megan J. Brennan. Meanwhile, the plan to eliminate Saturday service is dead. Dec 10 The Postal Service’s overall profit for the quarter was $1.4 billion. WATCH: With deadline looming, COVID-19 aid talks continue, By Ricardo Alonso-Zaldivar, Associated Press, By Lorne Cook, Raf Casert, Associated Press, By Heather Hollingsworth, Associated Press. It cannot cut these benefits without congressional approval. Clearly, there is also a longer-term financial structure problem that has to be addressed as well. In accepting the position, Franklin dedicated his efforts to fulfilling George Washington's vision. Please check your inbox to confirm. Dec 08 To some extent, the USPS has been dragged under financially in ways private sector companies would not be. Congressional Democrats want to pass legislation that could give the USPS $10 billion of support now and $15 billion over the next several years. Early History of the U.S. With the holiday season approaching, Brennan said, the Postal Service added hours to include early morning and evening package deliveries and was expanding service on Sundays. The USPS has been running deficits for years. In the fiscal year of 2020, the USPS … © 1996 - 2020 NewsHour Productions LLC. The control of its operating cost structure less so. USPS records its first quarterly net profit in five years, but warns losses are not over. Excluding losses so far this year, the USPS last had a surplus in 2006. However, even if the uncontrollable losses are removed from the net loss calculation, the USPS still ran a $3.4 billion deficit for FY 2019. Congress is the key to a reduction is post office locations. The U.S. The job loss alone is a travesty, but a bigger principle is at stake. Thank you. Between the fiscal year of 2004 and 2019, annual revenue of the U.S. Internal streamlining and delivery slowdown So, is the USPS losing something it could have controlled? All Rights Reserved. It has 31,322 USPS-managed retail post offices. Postal Service lost $15.9 billion its 2012 fiscal year. While the ballot controversy is new, the financial problems are not. That was better than a $5.6 billion loss in the prior year but was mainly due to fluctuations in interest rates that reduced workers’ compensation expenses. “We cannot generate enough revenue or cut enough costs to pay all of our bills.”. The United States Postal Service reported Feb. 9 “controllable income” of $522 million for the first quarter of fiscal year 2017, which ended Dec. 31. Using the deficit created by this requirement as an excuse, the USPS board of governors is closing distribution centers, cutting worker hours, eliminating delivery routes, and slashing jobs. Analysts have cheered the Postal Service’s promise in the digital age. Why Does the US Postal Service Lose Money? Excluding losses so far this year, the USPS last had a surplus in 2006. The New York Times reports. Hope Yen, Associated Press A look at the revenue side of the ledger reveals why. WASHINGTON — The beleaguered U.S. The USPS’s net loss widened from a year ago, from $1.49 billion a year ago to $2.3 billion this year, for a total loss of $5.9 billion for the year. Amazon annual/quarterly gross profit history and growth rate from 2006 to 2020. Postal Service turned a profit in a financial quarter for the first time in five years, though President Obama still proposed the agency slash 12,000 employees in his fiscal 2017 budget. Legislation in 2006 required the Postal Service to fund 75 years’ worth of retiree health benefits, something that neither the government nor private companies are required to do. On August 9th, 2019, the United States Postal Service (USPS) released its latest financial report for the third quarter of fiscal year (FY) 2019 and, following previous patterns, the outlook is dire. This reduction allows the Postal Service to continue to reduce interest costs. Much of Congress wants to give the USPS the capital it needs to operate at its traditional level of service. For the first nine months of its fiscal year, it lost $7.4 billion on $54.8 billion. For more information about United States Postal Service financial … But this was not how the Postal Service was supposed to work. The U.S. Jan 02 More recently, it began a pilot program this holiday season to provide cheap next-day service with packages delivered Sundays to people’s homes. The postal service is a not-for-profit, self-supporting agency that covers its expenses through postage (stamp use in the United States started in 1847) and related products. Postal Service’s financial straits could disrupt daily mail delivery, Postal Service may get more freedom to raise stamp prices, Dog attacks of U.S. postal workers highest in three decades, WATCH LIVE: FDA advisers consider Pfizer COVID-19 vaccine for emergency authorization, WATCH: Trump’s chief virus aid negotiator sees ‘a lot of progress’, 3 ways that the U.S. population will change over the next decade, One-day U.S. deaths top 3,000, more than D-Day or 9/11, WATCH: With deadline looming, COVID-19 aid talks continue, CDC official says she was ordered to delete an email suggesting attempted interference by Trump administration, probe finds. However, the last year the Postal Service recorded any profit was 2006, and its cumulative losses since then totaled $83.1 billion as of March 31. 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