U.S. Postal Service said Thursday that its QUARTERLY Loss widened to $3.3 Billion - $3.3 Billion -
The U.S. Postal Service said Thursday that its quarterly loss widened to $3.3 billion amid declining mail volume and mounting costs for future retiree health benefits as it struggles to stave off bankruptcy.
From October through December 2011, losses were $3 billion more than the same period a year ago, even though that quarter is typically the strongest due to increased holiday shipping. The mail agency said that at this rate, it will run out of money by October.
The Postal Service is seeking new leeway from Congress to eliminate Saturday mail delivery, raise stamp prices and reduce health and other labor costs.
Also at stake are roughly 100,000 jobs, part of a postal cost-cutting plan to save up to $6.5 billion a year by closing 252 mail processing centers and up to 3,700 post offices. At the request of Congress, the cash-strapped agency agreed to wait until mid-May to begin closures so lawmakers would have time to stabilize its finances first.
Prospects for immediate congressional action remain uncertain.
"Passage of legislation is urgently needed that provides the Postal Service with the speed and flexibility needed to cut costs that are not under our control, including employee health costs," said Postmaster General Patrick Donahoe.
Read more -
http://hosted.ap.org/dynamic/stories/U/US_POSTAL_PROBLEMS?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2012-02-09-09-40-07
The U.S. Postal Service said Thursday that its quarterly loss widened to $3.3 billion amid declining mail volume and mounting costs for future retiree health benefits as it struggles to stave off bankruptcy.
From October through December 2011, losses were $3 billion more than the same period a year ago, even though that quarter is typically the strongest due to increased holiday shipping. The mail agency said that at this rate, it will run out of money by October.
The Postal Service is seeking new leeway from Congress to eliminate Saturday mail delivery, raise stamp prices and reduce health and other labor costs.
Also at stake are roughly 100,000 jobs, part of a postal cost-cutting plan to save up to $6.5 billion a year by closing 252 mail processing centers and up to 3,700 post offices. At the request of Congress, the cash-strapped agency agreed to wait until mid-May to begin closures so lawmakers would have time to stabilize its finances first.
Prospects for immediate congressional action remain uncertain.
"Passage of legislation is urgently needed that provides the Postal Service with the speed and flexibility needed to cut costs that are not under our control, including employee health costs," said Postmaster General Patrick Donahoe.
Read more -
http://hosted.ap.org/dynamic/stories/U/US_POSTAL_PROBLEMS?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2012-02-09-09-40-07
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