Postal Service lost $3.9 billion last year

[Chris0nllyn]

The U.S. Postal Service on Wednesday reported that it saw a $3.9 billion loss in fiscal 2018, a 44 percent larger dip into the red over the previous year despite a $1 billion revenue increase.

Ongoing volume losses of 3.6 percent during the fiscal year, which ended Sept. 30, led to a “controllable loss” of $2 billion, more than doubling the loss from the previous year. Expenses outside of management’s control, such as funding for retiree health benefits, accounted for the rest of the negative outcome. The Postal Service declined to make required payments of nearly $7 billion to pay for future retirees’ pensions and health care.

“Simply put, we cannot generate revenue or cut enough costs to pay our bills,” Brennan said, noting her “aggressive management” approach would not be sufficient to solve the agency’s problems.

https://www.govexec.com/management/2018/11/postal-service-loses-39-billion-fiscal-2018/152826/

Stamps will go up 5% next year and other mailing services will jump by 2.5%.

There's simply no way a private company could survive this. $100 billion in unfunded pension liabilities and "no clear path to profitability" does not point to effective management or business practices.

 

[GURPS]

Quasi Governmental Agency

 

[Gilligan]

No surprises in there. The USPS has been a "dead" business model for a long time.

The big question remains: If the USPS goes away, how to assure package and mail service continues for so much of the remote/rural population of the country.

 

[stgislander]

No surprises in there. The USPS has been a "dead" business model for a long time.

The big question remains: If the USPS goes away, how to assure package and mail service continues for so much of the remote/rural population of the country.

Drones.

 

[This_person]

Drones.

Skeet shooting with prizes!!

 

[PeoplesElbow]

No surprises in there. The USPS has been a "dead" business model for a long time.

The big question remains: If the USPS goes away, how to assure package and mail service continues for so much of the remote/rural population of the country.

Wouldn't that require a constitutional amendment?

 

[This_person]

https://www.govexec.com/management/2018/11/postal-service-loses-39-billion-fiscal-2018/152826/

Stamps will go up 5% next year and other mailing services will jump by 2.5%.

There's simply no way a private company could survive this. $100 billion in unfunded pension liabilities and "no clear path to profitability" does not point to effective management or business practices.

So, they lost $2B from loss of service demand, and the other $2B from retiree health care (and associated) costs, PLUS they didn't make a $7B payment? Does that mean they really lost $11B, or are they using the $7B to recover the $4B?

Operating expenses ticked up by 3.1 percent, however, largely driven by increases in compensation and transportation costs.

Do they not have control of compensation?

 

[Kyle]

No surprises in there. The USPS has been a "dead" business model for a long time.

The big question remains: If the USPS goes away, how to assure package and mail service continues for so much of the remote/rural population of the country.

I'll sell you my homing pigeon.

 

[Gilligan]

I'll sell you my homing pigeon.

I'm not falling for that. You already sold it 22 times...

 

[GURPS]

If the USPS goes away, how to assure package and mail service continues for so much of the remote/rural population of the country.

UPS / Fedex does to get on the Island


when I worked for UPS in 88 they bragged UPS Delivered EVERYWHERE .... some Citizens were stuck picking up mail on Rural Routes at a PO Box

 

[Chris0nllyn]

So, they lost $2B from loss of service demand, and the other $2B from retiree health care (and associated) costs, PLUS they didn't make a $7B payment? Does that mean they really lost $11B, or are they using the $7B to recover the $4B?

Do they not have control of compensation?

Here's their annual report:
http://about.usps.com/who-we-are/financials/10k-reports/fy2018.pdf

The table on Page 16 is where they got the $3.9b number. It's simply revenue minus expenses. Expenses include pay, benefits, unfunded retirement, etc.

The $7b payments to the PSRHBF not made are actually over two years. $3.7b in 2018 and $3.3b in 2017 (It's not just those 2 years. In total, they owe $42.6b to the retirement fund). Even without those payments, the PSRHBF still has $66.5b in unfunded obligations in FY2018. Basically, they don't have enough cash on hand to pay almost $4b the last 2 years in the retirement fund and fund normal operations. According to their annual report, they "have incurred no penalties or negative financial consequences resulting from our inability to make these payments."

Compensation is only a part of operational expenses as it states. I'm not sure what control they have over compensation. Being quasi-government I wonder if they are on a stepped pay schedule.

 

[Hijinx]

Just a question, what happens when the Post Office starts hiring kids who cannot read Cursive?

It's bad enough now they hire idiots who cannot read, will it get worse?

 

[frequentflier]

After talking to the local postmaster, I can't help but wonder how many postal workers and contractors will go out on permanent disability from hefting the heavy boxes from online shopping. He said the back room is to the ceiling on a daily basis with heavy boxes of bird seed, pet foods, cat litter, etc.
My home delivery mail contractor has had this route for over 35 years. He is in his 70's and has had both hips replaced. I shudder to think of him having to lug heavy packages to people's porches.