Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

USPS Posts $3.1 Billion Loss In Q3, Warns Of Default [More Stimulus Money Needed?]
YahooNews ^ | August 05, 2011

Posted on 08/05/2011 9:22:36 PM PDT by Steelfish

USPS Posts $3.1 Billion Loss In Q3, Warns Of Default By Emily Stephenson

WASHINGTON (Reuters) - The U.S. Postal Service posted a net loss of $3.1 billion in its third quarter and warned again it would default on payments to the federal government if Congress did not step in. Total mail volume for the quarter that ended June 30 fell to 39.8 billion pieces, a 2.6 percent drop from the same period a year earlier, as consumers turn to email and pay bills online.

The mail carrier, which does not get taxpayer funds, has struggled to overhaul its business as mail volumes fall. It has said personnel costs weigh heavily and is facing a massive retiree health benefit prepayment next month.

"We are experiencing a severe cash crisis and are unable to continue to maintain the aggressive prepayment schedule," Joseph Corbett, the agency's chief financial officer, said in a statement.

"Without changes in the law, the Postal Service will be unable to make the $5.5 billion mandated prepayment due in September." Congress, which last week ended a vitriolic debate about the U.S. government's debt levels and budget deficit, is now in recess until early September.

USPS cut work hours during the quarter by 3.1 percent compared to the previous year, when quarterly net losses were $3.5 billion.

(Excerpt) Read more at news.yahoo.com ...


TOPICS: Business/Economy; News/Current Events
KEYWORDS: default; mail; postal; postalservice; usmail; usps
Navigation: use the links below to view more comments.
first 1-5051 next last

1 posted on 08/05/2011 9:22:40 PM PDT by Steelfish
[ Post Reply | Private Reply | View Replies]

To: Steelfish
S&P downgrade, Fannie and Freddie want $5 billion, and now USPS- all in one day. Did obama wish for pandemonium before he blew out his candles?
2 posted on 08/05/2011 9:26:01 PM PDT by goodwithagun (My gun has killed fewer people than Ted Kennedy's car.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Steelfish

the usps union was advertising on rush limbaugh

today; they said they don’t take taxpayers’ money.


3 posted on 08/05/2011 9:27:54 PM PDT by ken21 (ruling class dem + rino progressives -- destroying america for 150 years.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Steelfish

Can we first thing, tell the USPS to stop lying to people in commercials that they don’t get ANY taxpayer money, that all their expenses are covered by stamps and postage?

They are at best, quasi-governmental. They are federal employees. They have federal retirement systems. It is a federal crime to steal letters, assault a postman, or get into an accident with a post office truck.

They ARE government. Period. Maybe stop lying and wasting USPS money on ad campaigns trying to convince us you’re not government and self-sufficient, when at the same time you’re begging for more money from the government.

If you’re a private self-sufficient entity, then either swim with fedex, ups and the rest, or drown. That’s what private sector companies do.

Just dammit.


4 posted on 08/05/2011 9:29:55 PM PDT by Secret Agent Man (I'd like to tell you, but then I'd have to kill you.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Steelfish

Time for Chapter 7 bankruptcy and put USPS out for bid to private companies!

Eliminate the government and unions from mail delivery!!!!!!!!!!!!


5 posted on 08/05/2011 9:30:21 PM PDT by dalereed
[ Post Reply | Private Reply | To 1 | View Replies]

To: Steelfish

The time for the USPS to go into true private recievership. USPS to UPS or Fedex would be a start in the right direction.


6 posted on 08/05/2011 9:32:33 PM PDT by Sea Parrot (Obama may not be a natural born citizen, but there is no denying that he is a natural born liar.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Steelfish

“The mail carrier, which does not get taxpayer funds..”

Really, every time one turns around the USPS is there with hat in hand for a few billion more taxpayer $.


7 posted on 08/05/2011 9:35:27 PM PDT by Sea Parrot (Obama may not be a natural born citizen, but there is no denying that he is a natural born liar.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Steelfish
Sure glad they're making progress in having the government take over and run healthcare.... What could go wrong?
8 posted on 08/05/2011 9:40:30 PM PDT by pieceofthepuzzle
[ Post Reply | Private Reply | To 1 | View Replies]

To: Steelfish

>> The mail carrier, which does not get taxpayer funds, has struggled to overhaul its business as mail volumes fall.

I’d really like to see USPS get through this without special financial assistance. Cut Saturday deliveries? Temporarily cut manager salaries?

>> “unable to continue to maintain the aggressive prepayment schedule”

Referring to the pension reserves?


9 posted on 08/05/2011 9:40:32 PM PDT by Gene Eric (May our dreams converge for a free and prosperous nation.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Steelfish

I know the Post Office is inefficient, but the way they are micromanaged by Congress, there is no way they can succeed. The want to close a zillion old Post Offices, which Congress will not let them do, or raise the price of stamps or reduce service like not deliver on Saturday. With much reduced revenue because of the Internet, they need to do something but are blocked on all fronts, so they just bleed money.


10 posted on 08/05/2011 9:43:14 PM PDT by microgood
[ Post Reply | Private Reply | To 1 | View Replies]

To: Sea Parrot
Really, every time one turns around the USPS is there with hat in hand for a few billion more taxpayer $.

Well, as a matter of fact, they're not.

I discovered this when somebody took me through the USPS P&L.

There was one line, under income, that indicated something like $800 million in receipts from the US Government.

Turns out this isn't a subsidy. Instead, it's largely the collection of postage due on franked mail and pre-paid response envelopes sent out by the government.

To my surprise, turns out the USPS isn't subsidized, after all.

11 posted on 08/05/2011 9:50:32 PM PDT by okie01 (THE MAINSTREAM MEDIA: Ignorance On Parade)
[ Post Reply | Private Reply | To 7 | View Replies]

To: Steelfish

Line up behind Fanny May and Freddie Mac. And learn to speak Chinese.


12 posted on 08/05/2011 10:05:47 PM PDT by Sundog (It takes a darn good reason for me to break down and post something these days.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: okie01

As a mail sorter, I would guess the MASSIVE amounts of government generated first class mail to account for roughly 1/4 to 1/3 of first class volume. I would call that taxpayer subsidized.


13 posted on 08/05/2011 10:10:01 PM PDT by Crazieman (Feb 7, 2008 http://www.freerepublic.com/focus/f-news/1966675/posts?page=28#28)
[ Post Reply | Private Reply | To 11 | View Replies]

To: ken21

Strange - I saw a TV add the other day that said the USPS is totally self-sufficient and doesn’t require taxpayer money. It said they are totally funded by delivery fees (stamps and such).

Personally I have always found their service to be extremely reliable and effective. Whether they are efficient and properly managed I cannot say - but I still pay my bills via the mail and mail my packages via USPS and have no complaints.


14 posted on 08/05/2011 10:27:02 PM PDT by DJlaysitup
[ Post Reply | Private Reply | To 3 | View Replies]

To: DJlaysitup

P.S. - to ken21 - I didn’t word that reply correctly - I didn’t mean it to look like I was disagreeing with you.


15 posted on 08/05/2011 10:32:48 PM PDT by DJlaysitup
[ Post Reply | Private Reply | To 14 | View Replies]

To: Steelfish

RAISE THE RATES FOR JUNK MAIL.

I hate that sheit.


16 posted on 08/05/2011 10:46:41 PM PDT by Blado (Audemus jura nostra defendere)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Blado

No kidding. Why not allow the USPS to charge full bore for junk mail? If that doesn’t work, then just kill it off. It’s pretty much obsolete and unnecessary.


17 posted on 08/05/2011 11:00:10 PM PDT by Carismar
[ Post Reply | Private Reply | To 16 | View Replies]

To: Steelfish

better than giving money to the Taliban in Afghanistan,
which is what we do now


18 posted on 08/05/2011 11:12:46 PM PDT by 50gunsalute
[ Post Reply | Private Reply | To 1 | View Replies]

To: Gene Eric

Most of my mail nowadays is junk. I have made online statements a habit so the days of the mail delivery is passé. The unionized labor force who service the post offices are not a paragon of service we cannot do without. I know my FedEx and UPS guys by name. Do not have a clue who puts me neighbors mail in my box at home


19 posted on 08/05/2011 11:15:32 PM PDT by Semperfiwife (Baroke Obama -change you can't find in your sofa cushions)
[ Post Reply | Private Reply | To 9 | View Replies]

To: Steelfish

dump ‘em~


20 posted on 08/06/2011 4:28:05 AM PDT by gunnyg ("A Constitution changed from Freedom, can never be restored; Liberty, once lost, is lost forever...)
[ Post Reply | Private Reply | To 1 | View Replies]

To: okie01

So, why are they now asking congress for bilion of $ more?


21 posted on 08/06/2011 2:54:38 PM PDT by Sea Parrot (Obama may not be a natural born citizen, but there is no denying that he is a natural born liar.)
[ Post Reply | Private Reply | To 11 | View Replies]

To: Sea Parrot
So, why are they now asking congress for bilion of $ more?

Because, now, they are losing money. They were self-supporting before.

22 posted on 08/06/2011 4:09:18 PM PDT by okie01 (THE MAINSTREAM MEDIA: Ignorance On Parade)
[ Post Reply | Private Reply | To 21 | View Replies]

To: okie01
Self supporting before what, BC? Give some provenance to that statement please.
23 posted on 08/06/2011 4:45:39 PM PDT by Sea Parrot (Obama may not be a natural born citizen, but there is no denying that he is a natural born liar.)
[ Post Reply | Private Reply | To 22 | View Replies]

To: Sea Parrot
Self supporting before what, BC? Give some provenance to that statement please.

The USPS financial statements are a matter of public record. You can look them up for yourself.

24 posted on 08/06/2011 6:31:32 PM PDT by okie01 (THE MAINSTREAM MEDIA: Ignorance On Parade)
[ Post Reply | Private Reply | To 23 | View Replies]

To: okie01

In other words, after your statement about all your research, you have no proof.


25 posted on 08/06/2011 7:39:28 PM PDT by Sea Parrot (Obama may not be a natural born citizen, but there is no denying that he is a natural born liar.)
[ Post Reply | Private Reply | To 24 | View Replies]

To: Carismar

It is Constitutionally required.


26 posted on 08/06/2011 8:02:32 PM PDT by yuleeyahoo
[ Post Reply | Private Reply | To 17 | View Replies]

To: yuleeyahoo
What part of the Constitution is that in?  It certainly isn't required under the powers enumerated in section 8 of article I of the Constitution.
27 posted on 08/06/2011 8:07:08 PM PDT by Oceander (The phrase "good enough for government work" is not meant as a compliment)
[ Post Reply | Private Reply | To 26 | View Replies]

To: Steelfish
I love the continued lies about how the USPS doesn't get taxpayer money. First, the government - we the taxpayers - have a cumulative "investment" in the USPS of a little over $3 billion dollars, and we ponied up another $45 million in "capital contributions" during 2010 (technically, sometime in the period between September 30, 2009, and June 30, 2010, according to the latest USPS financial statements). Also, the USPS has massive "debts" it technically "owes" to the Federal Financing Bank - a "government-owned corporation under the general supervision of the Secretary of the Treasury" according to Note 3 of the latest USPS financials, and, BTW, that debt bears below market interest rates ranging from 0.135% for its overnight and short-term revolving accounts with the FFB (i.e., its credit cards), to 2% and up to 3.9% on its long-term debt.

Giving the USPS below-market interest rate loans is just an underhanded, deceitful way of giving additional taxpayer money to the USPS - if the USPS were a private entity receiving below-market rate loans from another private company it would have to recognize constructive income from that below market rate because, as the tax collector - and wall street banks - figured out long ago, if you're paying less interest than you would have to pay in an arms length transaction, you're getting free money - your net wealth is increasing.

Just in case anyone cares, the USPS financials can be found here: http://about.usps.com/who-we-are/financials/welcome.htm.

Read 'em and weep.

Oh, and just in case anyone cares, the FFB puts out a list of the loans it has outstanding, with debtors' names, amounts and interest rates - it makes for some eye-opening reading. Give it a try, here: http://www.treasury.gov/ffb/press_releases/2011/07-2011.shtml
28 posted on 08/06/2011 8:25:05 PM PDT by Oceander (The phrase "good enough for government work" is not meant as a compliment)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Sea Parrot
Go find it yourself, sir. That's what I did.
29 posted on 08/06/2011 8:37:32 PM PDT by okie01 (THE MAINSTREAM MEDIA: Ignorance On Parade)
[ Post Reply | Private Reply | To 25 | View Replies]

To: Oceander

“I love the continued lies about how the USPS doesn’t get taxpayer money....Just in case anyone cares, the USPS financials can be found here:”
http://about.usps.com/who-we-are/financials/welcome.htm

Well I went to the link you posted and looked through the 2010 Annual Report. On page 56 under the heading ‘Debt’ it says this:

“As an ‘independent establishment of the executive branch of the Government of the United States’ the Postal Service receives no tax dollars for ongoing operations, and has not received an appropriation for operational costs since 1982. We fund operations chiefly through cash generated from operations and by borrowing from the FFB”

So evidently the ‘continued lies’ are coming from the USPS itself. Were you aware that this was in their annual report when you linked to their financials?


30 posted on 08/06/2011 9:50:33 PM PDT by Pelham (Obama, the vanguard of the proletariat since 2008)
[ Post Reply | Private Reply | To 28 | View Replies]

To: okie01

I go with my original statement that the USPS has been suckling on the taxpayer teat for many years. And, nothing you have shown disproves it.


31 posted on 08/06/2011 10:49:34 PM PDT by Sea Parrot (Obama may not be a natural born citizen, but there is no denying that he is a natural born liar.)
[ Post Reply | Private Reply | To 29 | View Replies]

To: Sea Parrot
I go with my original statement that the USPS has been suckling on the taxpayer teat for many years. And, nothing you have shown disproves it.

What have you shown to support your assertion? Why, that would be nothing.

Obviously, you prefer your own mistaken notions to any facts which might contradict them. Accordingly, I've no interest in continuing this conversation. Nor in doing your work for you.

See ya around.

32 posted on 08/06/2011 11:48:22 PM PDT by okie01 (THE MAINSTREAM MEDIA: Ignorance On Parade)
[ Post Reply | Private Reply | To 31 | View Replies]

To: Oceander

Article I Section 8; To establish Post Offices & Postal Roads.


33 posted on 08/07/2011 7:53:00 AM PDT by yuleeyahoo
[ Post Reply | Private Reply | To 27 | View Replies]

To: Oceander

Article I Section 8; To establish Post Offices & Postal Roads.


34 posted on 08/07/2011 7:53:07 AM PDT by yuleeyahoo
[ Post Reply | Private Reply | To 27 | View Replies]

To: Steelfish

They have the unfriendliest customer service staff I have ever encountered. And not just in one post office. It must be part of their screening process.


35 posted on 08/07/2011 7:56:32 AM PDT by Repealthe17thAmendment (Is this field required?)
[ Post Reply | Private Reply | To 1 | View Replies]

To: okie01

http://www.sectalk.com/boards/images/imported/2011/02/WellBye-1.jpg


36 posted on 08/07/2011 10:53:34 AM PDT by Sea Parrot (Obama may not be a natural born citizen, but there is no denying that he is a natural born liar.)
[ Post Reply | Private Reply | To 32 | View Replies]

To: Pelham
Of course I was, why do you think I linked to them? Should I have linked to, say, the financials of McDonalds, perhaps? Does it surprise you in the least that the USPS - or any organ of the federal government - is not being scrupulously honest with you?

That is why any good company analyst will tell you that the notes to the financial statements are infinitely more useful and informative than the financial statements themselves - because that is where the truth is generally hidden.
37 posted on 08/07/2011 6:59:00 PM PDT by Oceander (The phrase "good enough for government work" is not meant as a compliment)
[ Post Reply | Private Reply | To 30 | View Replies]

To: yuleeyahoo
Did you read that language carefully? It doesn't require that post offices be created, it merely grants Congress the power to create them if it so chooses to do so. Easy come, easy go; Congress has just as much power to abolish the current USPS and leave all mail deliveries up to private services.
38 posted on 08/07/2011 7:05:33 PM PDT by Oceander (The phrase "good enough for government work" is not meant as a compliment)
[ Post Reply | Private Reply | To 34 | View Replies]

To: Oceander

Could you point out in the annual report the figure for the amount of tax money the USPS received?


39 posted on 08/07/2011 8:39:50 PM PDT by Pelham (Obama, the vanguard of the proletariat since 2008)
[ Post Reply | Private Reply | To 37 | View Replies]

To: Pelham
Where, pray tell, do you think that $45,000,000 in additional capital contributions the federal government made during the period September 30, 2009 to June 30, 2010, came from? Thin air? George Soros' personal funds? Royalties on Obama's next memoirs?

Beyond that, do you have even a nodding acquaintance with the concept of opportunity cost? If the federal taxpayer lent the USPS even a single dollar that could have been otherwise lent to another borrower at a higher rate of interest, then the foregone interest income - income that would have accrued to the federal taxpayer - was instead given to the USPS on account of the Federal Financing Bank having lent that dollar to the USPS.
40 posted on 08/07/2011 8:47:39 PM PDT by Oceander (The phrase "good enough for government work" is not meant as a compliment)
[ Post Reply | Private Reply | To 39 | View Replies]

To: Oceander

Is that money a loan from the FFB, or is it tax money that the USPS gets without any necessity of repayment?

When I looked at the 2005 report I noticed that the USPS had zero debt.


41 posted on 08/07/2011 8:51:47 PM PDT by Pelham (Obama, the vanguard of the proletariat since 2008)
[ Post Reply | Private Reply | To 40 | View Replies]

To: Pelham
A capital contribution is not a loan, by definition. One who makes a contribution to capital generally does not get a single cent until all of the corporation's creditors are paid off, including trade creditors. As the USPS is so far in the hole it'll never see a net profit, that $45 million was simply a disguised taxpayer handout.

On the debt, I'd consider the most recent report a bit more relevant than the 2005 report, and according to both the current USPS report and the most recent release from the Federal Financing Bank, the USPS is about $12.7 billion in the hole, debt-wise.

Finally, if you review the data, you'll see that the federal government - the federal taxpayers - have already made capital contributions of about $3 billion to the USPS, none of which will ever be repaid considering that the USPS has an accumulated deficit of about $5 billion. That is just more federal taxpayer money that has, essentially, simply be handed over to the USPS.
42 posted on 08/07/2011 8:58:50 PM PDT by Oceander (The phrase "good enough for government work" is not meant as a compliment)
[ Post Reply | Private Reply | To 41 | View Replies]

To: Pelham
Also, look one year forward from 2005; as per the Federal Financing Bank's Report for the 2005 to 2006 fiscal year, the USPS was net in the hole by $2.1 billion as of September 30, 2006 (even though it started out with no debt due the FFB as of September 30, 2005).
43 posted on 08/07/2011 9:03:39 PM PDT by Oceander (The phrase "good enough for government work" is not meant as a compliment)
[ Post Reply | Private Reply | To 41 | View Replies]

To: Oceander

That $3 billion capital contribution that you speak of appears, unchanged, in every report from from 1999 to 2009. 1999 is the earliest report available at the website so there isn’t a way to see how far back it goes.

However I wonder if this isn’t capital credited to the USPS by the old Post Office Department when the POD was reorganized as the Postal Service back in 1971. The Post Office Department received a taxpayer subsidy. The USPS was intended to be self supporting.


44 posted on 08/07/2011 9:26:31 PM PDT by Pelham (Obama, the vanguard of the proletariat since 2008)
[ Post Reply | Private Reply | To 42 | View Replies]

To: Pelham
I've seen data on the accrual of that contribution, and not all of it originated in 1971. With respect to the USPS being financially independent of the federal government, it never has been, as the CBO itself mentioned in a 1984 report entitled "Curtailing Indirect Federal Subsidies to the U.S. Postal Service."

In terms of the continuing capital contributions by the federal taxpayer, the USPS' own 2010 annual report is revealing. On page 2, "The past year in review," is a summary chart showing that the federal taxpayer made additional capital contributions for the fiscal year ending Sept. 30, 2009 of $54 million, and - as has been mentioned - an additional $45 million for the fiscal year ending Sept. 30, 2010.

So, regardless of where that $3.034 billion may have originated from (and even so, it's still US taxpayer money), the USPS has still gotten an additional $99 million from the US taxpayer in just two fiscal years as capital contributions - in a business that has never operated at a profit, that money will never come back out to the idiot shareholder who contributed it - and that is federal taxpayer money that the USPS has received, notwithstanding its claims to the contrary.
45 posted on 08/07/2011 9:44:23 PM PDT by Oceander (The phrase "good enough for government work" is not meant as a compliment)
[ Post Reply | Private Reply | To 44 | View Replies]

To: Oceander
the USPS' own 2010 annual report is revealing

Page 9 is very revealing.

Unlike any other public or private entity, under a 2006 law, the U.S. Postal Service must prefund retiree health benefits. We must pay today for benefits that will not be paid out until some future date.

and...

Adopting a traditional “pay-as-you-go” method would produce an average of $5.65 billion in additional cash flow per year through 2016.

46 posted on 08/08/2011 1:57:35 AM PDT by Route797
[ Post Reply | Private Reply | To 45 | View Replies]

To: Route797

In other words....?


47 posted on 08/08/2011 4:36:19 AM PDT by Oceander (The phrase "good enough for government work" is not meant as a compliment)
[ Post Reply | Private Reply | To 46 | View Replies]

To: All

just another union bailout for Obama to take from his stash..


48 posted on 08/08/2011 4:37:58 AM PDT by newnhdad
[ Post Reply | Private Reply | To 47 | View Replies]

To: Oceander

And you actually think that’s a real possibility? Name one power Congress has ever given up, Constitutional or otherwise.


49 posted on 08/08/2011 6:46:41 AM PDT by yuleeyahoo
[ Post Reply | Private Reply | To 38 | View Replies]

To: Oceander

Just pointing out a handicap the USPS operates under.


50 posted on 08/08/2011 3:50:36 PM PDT by Route797
[ Post Reply | Private Reply | To 47 | View Replies]


Navigation: use the links below to view more comments.
first 1-5051 next last

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson