THIRD QUARTER FINANCIALS
REVENUE FROM SHIPPING SERVICES INCREASES
The Postal Service ended its third quarter of fiscal year 2011 with a net loss of $3.1 billion, compared to a net loss of $3.5 billion for the same period in FY 2010. Total mail volume declined to 39.8 billion pieces for the quarter, compared to 40.9 billion pieces in the third quarter of FY 2010.
Net losses for the nine months ending June 30 amount to $5.7 billion in 2011 compared to $5.4 billion in 2010.
Even with significant cost reductions and revenue growth initiatives, current financial projections indicate the Postal Service will have a cash shortfall and will have reached its statutory borrowing limit by the end of the fiscal year. Absent substantial legislative change, USPS will be forced to default on payments to the federal government.
Despite an overall dire financial situation, the Postal Service reports increased revenue for the quarter in certain areas. Standard Mail revenue increased 1.7 percent in the third quarter, and Package Services revenue increased 3.2 percent. Revenue from Shipping Services, including Express Mail and Priority Mail, increased 7.3 percent for the quarter.
Information appeared in the August 26th issue of PCC Insider, an industry specific, US Postal Service electronic newsletter.
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