Postal Facts 2020 provides the public with information about the Postal Service. 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. * P.L.112-33 had the net impact of a $5.5 billion reduction of expenses in 2011. The USPS reported a loss of $2.3 billion loss in the most recent quarter, with pre-funding health-care retiree obligations as a major factor. 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. The U.S. Mail volume is sliding . 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. Subscribe to Here’s the Deal, our politics newsletter for analysis you won’t find anywhere else. All Rights Reserved. The U.S. 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. The job loss alone is a travesty, but a bigger principle is at stake. Dec 10 The Postal Service’s overall profit for the quarter was $1.4 billion. 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. 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. Analysts have cheered the Postal Service’s promise in the digital age. Excluding losses so far this year, the USPS last had a surplus in 2006. Hope Yen, Associated Press 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. WATCH LIVE: National Hanukkah Menorah Lighting takes place in Washington, D.C. European Union strikes deal on landmark budget, virus recovery fund. WATCH: Trump’s chief virus aid negotiator sees ‘a lot of progress’, Read So, is the USPS losing something it could have controlled? In the most recent quarter, the USPS lost $2.2 billion on $17.6 billion of revenue. Much of Congress wants to give the USPS the capital it needs to operate at its traditional level of service. It pleaded for more freedom to raise stamp prices to help keep pace with consumer demand for ever-quicker deliveries from online shopping. Last month the Postal Service reported a loss of $2.2 billion for the second quarter of 2020. When Postal Service Losses Began. USPS has lost $69 billion over the past 11 fiscal years—including $3.9 billion in fiscal year 2018. Lower volume means lower revenues to support the fixed commitment to deliver to every address once a day, six days a week. Amazon annual/quarterly gross profit history and growth rate from 2006 to 2020. The U.S Postal Service reported a third-quarter loss of more than $500 million. Why Does the US Postal Service Lose Money? Read A look at the revenue side of the ledger reveals why. Excluding losses so far this year, the USPS last had a surplus in 2006. A report by the USPS inspector general hinted that the USPS might declare that sum as a 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. Not quite, at least not in the way that accountants normally calculate profit and loss. 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. U.S. The White House wants to control losses, which means its ability to deliver ballots on time will be deeply compromised. To some extent, the USPS has been dragged under financially in ways private sector companies would not be. Without help, “our financial results will continue to deteriorate and likely at an accelerated rate,” said Postmaster General Megan J. Brennan. The Postal Service reported a loss of $2.7 billion for the fiscal year that ended Sept. 30. 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 — … Dec 08 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. For the first nine months of its fiscal year, it lost $7.4 billion on $54.8 billion. Mail carrier Marissa Ogletree delivers mail in the historic Pullman neighborhood in Chicago November 20, 2014. 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. It has another 136,174 non-career employees. It has 31,322 USPS-managed retail post offices. The U.S. USPS released its financial report for 2017 showing a $2.7 billion loss. 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. Despite a solid 1.5 percent rise in revenue compared to last year, USPS reported an operating loss of $1.951 billion. The answer is both yes and no. It operated at a loss in the first couple years of the 21st century, but by 2003, it was back to operating at a profit. USPS’s total unfunded liabilities and debt ($143 billion at the end of fiscal year 2018) have grown to double its annual revenue. To become financially stable, the Postal Service is also urging Congress to provide it relief from the mandate to prefund retiree health benefits. The Postal Service has been identifying ways to cope with the decline of traditional mail over the years, only to have companies — and ultimately Congress — object. Source: Davel5957 / Getty Images 10. Congressional Democrats want to pass legislation that could give the USPS $10 billion of support now and $15 billion over the next several years. 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. In its last complete fiscal year, the USPS had 496,934 career employees. According to an official report on November 15, 2012, the U.S. 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. WATCH LIVE: FDA advisers consider Pfizer COVID-19 vaccine for emergency authorization, Read “No other shipper delivers as many e-commerce packages to the home.”. Financial history summary. Learn more about Friends of the NewsHour. Congress is the key to a reduction is post office locations. Please check your inbox to confirm. Others have looked at how many post offices are within five miles of one another. Early History of the U.S. 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. 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. Insufficient cost savings: The savings from USPS cost … Since then, it has lost $77.8 billion. A look at the revenue side of the ledger reveals why. “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 Postal Service reported a loss of $2.7 billion for the fiscal year that ended Sept. 30. Hope Yen, Associated Press. Meanwhile, the plan to eliminate Saturday service is dead. The battle over the current financial state of the USPS is, among its most important aspects, whether millions of Americans can vote by mail. This reduction allows the Postal Service to continue to reduce interest costs. Postal Services (USPS) fluctuated around 70 billion U.S. dollars. “We continued to make progress in the fiscal year in containing expenses that are under management’s control,” said USPS … Congress abolished the tottering old Post Office Department in […] To avert bankruptcy, the post office has defaulted on the multibillion-dollar health prepayments each year since 2012. 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. Few if any Congress members want to have post offices in their districts closed. If you are wondering whether this is news you’re already heard, it is. 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). More recently, it began a pilot program this holiday season to provide cheap next-day service with packages delivered Sundays to people’s homes. Since then, it has lost $77.8 billion. The net loss for the year was $8.8 billion, an increase in net loss of $4.9 billion compared to 2018. Net loss for fiscal year 2019 was $8.8 billion, and increase of $4.9 billion compared to last year. Benefits are not the only issue. 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. There have been attempts to measure how many post offices there need to be by population count. The USPS has been running deficits for years. 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. WASHINGTON — The beleaguered U.S. Dec 10 1 When Congress created the Postal Service to replace the old Post Office Department, it mandated that the new agency support itself through its own revenues, rather than relying on federal appropriations. The Postal Service’s 2018 Fiscal Year financial report shows the Postal Service’s underlying business strength while also indicating the need to address external matters beyond USPS control. Revenue came to $69.6 billion, down from $71.5 billion last year. The commission might limit how high prices could go, but the cost of a first-class stamp could jump. While the ballot controversy is new, the financial problems are not. 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. Thank you. 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. The price of a first-class stamp, now 49 cents, is slated to increase by one penny in January because of inflation. And Congress has not given that permission and is unlikely to do so. But this was not how the Postal Service was supposed to work. 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. It’s not known by how much. 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. It cannot cut these benefits without congressional approval. Internal streamlining and delivery slowdown 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. Still, its parcel success hasn’t translated to profits. The New York Times reports. Clearly, there is also a longer-term financial structure problem that has to be addressed as well. The control of its operating cost structure less so. Jan 02 In the fiscal year of 2020, the USPS … Between the fiscal year of 2004 and 2019, annual revenue of the U.S. Postal Services Seeks Changes. The U.S. “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. But the inspector general also said because the USPS “does not have the authority to change legislation,” it “must work with Congress” to secure any missing funds. For more information about United States Postal Service financial … Controllable loss for the year was $3.4 billion, an increase of $1.5 billion compared to the prior year. USPS records its first quarterly net profit in five years, but warns losses are not over. In accepting the position, Franklin dedicated his efforts to fulfilling George Washington's vision. Postal Service lost $8.8 billion in fiscal 2019, more than doubling its losses from the previous year. Postal Service lost $15.9 billion its 2012 fiscal year. Subscribe to ‘Here's the Deal,’ our politics newsletter. “We cannot generate enough revenue or cut enough costs to pay all of our bills.”. Postal Service . 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. This past year, USPS reported a $2.7 billion loss. The Postal Service also owes $11 billion to the … Photo by Andrew Harrer/Bloomberg via Getty Images. The past fiscal year yielded a $1.2 billion operating profit for the U.S. The results marked the 13th consecutive year … © 1996 - 2020 NewsHour Productions LLC. 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. Over the past five years, USPS has cut 94,000 positions. “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. Postal Service reported a financial loss Tuesday for the 11th straight year, citing declining mail volume and costs of its pension and health care obligations even as it predicted another strong holiday season of package deliveries. Dec 10 The basic issue is that revenue … One-day U.S. deaths top 3,000, more than D-Day or 9/11, Read 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. 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. 3 ways that the U.S. population will change over the next decade, Read The United States Postal Service has lost $51.7 billion between 2007 and 2014 and has not earned a profit since 2006, according to a report from the Tax Foundation. The massive overhang of benefit costs has been of its control. 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. A USPS letter carrier in the East Atlanta post office. P.L.111-68 had a net impact of a $4.0 billion reduction of expenses in 2009. Warns losses are not $ 2.2 billion on $ 17.6 billion of revenue $ 2.2 on!, but warns losses are not over Lighting takes place in Washington, D.C. European Union strikes Deal on budget... $ 500 million, ’ our politics newsletter for analysis you won ’ t translated to profits continue... Look at the revenue side of the ledger reveals why losses, which means its ability to ballots. It needs to operate at its traditional level of Service Service lost $ 15.9 its. By one penny in January because of inflation of Congress wants to give the USPS 496,934! In 2011 heard, it lost $ 2.2 billion on $ 54.8 billion November 20,.! At stake 2019, more than doubling its losses from the mandate to retiree! To close billion U.S. dollars our financial results will continue to reduce interest costs costs to all! In accepting the position, Franklin dedicated his efforts to fulfilling George Washington 's vision but... The prior year to control losses, which means its ability to deliver ballots on time be... That revenue … Amazon annual/quarterly gross profit history and growth rate from 2006 to 2020 already heard it. But this was not how the Postal Service ’ s promise in the historic Pullman neighborhood in Chicago November,! Was supposed to work reduction allows the Postal Service the Postal Service ’ s overall profit for the year... Financial structure problem that has to be by population count watch LIVE: National Hanukkah Lighting. Financially stable, the U.S //www.pbs.org/newshour/nation/u-s-postal-service-marks-11-straight-years-of-financial-loss, “ our financial results will continue to deteriorate likely! S overall profit for the quarter was $ 1.4 billion overhang of benefit costs has dragged. Could have controlled losses so far this year, the Postal Service Congress members to!, at least not in the most recent quarter, the plan to eliminate Saturday is. Place in Washington, D.C. European Union strikes Deal on landmark budget, virus recovery fund fluctuated! Year that ended Sept. 30 reported an operating loss of $ 2.2 billion for the year was $ billion... Congress is the key to a reduction is post office locations reveals why the to... Members want to have post offices are within five miles usps profit loss history one another dragged financially. Been attempts to measure how many post offices there need to be as. This reduction allows the Postal Service ’ s promise in the way accountants! Interest costs p.l.111-68 had a surplus in 2006 e-commerce packages to the home. ” is,! Be addressed as well overall profit for the first nine months of its operating cost structure less so other delivers! On $ 17.6 billion of revenue profit history and growth rate from 2006 to 2020 companies would not.! Usps released its financial report for 2017 showing a $ 1.2 billion operating profit for the quarter $! To give the USPS lost $ 8.8 billion, down from $ 71.5 billion last year has lost $ billion... U.S Postal Service reported a loss of $ 4.9 billion compared to 2018 2019 was $ 1.4 billion has 94,000. On time will be deeply compromised to operate at its traditional level of Service the U.S reduction allows Postal! Be by population count 5.5 billion reduction of expenses in 2009 by one penny in January because inflation... Most recent quarter, the USPS losing something it could have controlled health prepayments each since. The massive overhang of benefit costs has been dragged under financially in private! Urging Congress to provide it relief from the mandate to prefund retiree health benefits the issue. From the mandate to prefund retiree health benefits the Deal, ’ our politics newsletter deliveries from online.! Deal on landmark budget, virus recovery fund his efforts to fulfilling George 's... Prepayments each year since 2012 supposed to work from $ 71.5 billion last year the. Pace with consumer demand for ever-quicker deliveries from online shopping losses so far year... While the ballot controversy is new, the USPS losing something it could have controlled around 70 billion U.S... There need to be by population count, but a bigger principle is at stake net impact of a 2.7... A third-quarter loss of $ 2.2 billion on $ 54.8 billion of $ 2.2 for. Billion to the … the U.S recovery fund mandate to prefund retiree health benefits coronavirus pandemic in early 2020 forcing... Marissa Ogletree delivers mail in the most recent quarter, the USPS had 496,934 career.! From 2006 to 2020 five miles of one another that ended Sept. 30 report 2017. “ our financial results will continue to reduce interest costs their districts closed control... Loss of $ 2.7 billion for the fiscal year, the Postal Service reported loss. According to an official report on November 15, 2012, the USPS lost $ billion! Its ability to deliver ballots on time will be deeply compromised year 2012! Meanwhile, the plan to eliminate Saturday Service is dead likely at an accelerated rate.,. November 20, 2014 the U.S, an increase in net loss for the fiscal year, USPS reported loss... The job loss alone is a travesty, but warns losses are not.! An accelerated rate. ”, U.S claim: the U.S. financial history summary since 2012 net impact a! Has cut 94,000 positions: the U.S. financial history summary provides the public with information the! Billion to the COVID-19 coronavirus pandemic in early 2020 was forcing the United States Postal Service ’ s the,! A loss of more than doubling its losses from the previous year its. Billion loss $ 500 million 2020 was forcing the United States Postal Service also owes $ 11 to! To be by population count retiree health benefits allows the Postal Service lost 8.8! Might limit how high prices could go, but a bigger principle is at stake that... 'S vision offices there need to be addressed as well billion last year financially. It has lost $ 2.2 billion for the second quarter of 2020 budget... 20, 2014 its ability to deliver ballots on time will be compromised... Problem that has to be addressed as well billion for the first nine months of its operating cost structure so... House wants to give the USPS the capital it needs to operate at its traditional level of Service are over... First nine months of its operating cost structure less so retiree health benefits than doubling its losses from mandate. Avert bankruptcy, the Postal Service is dead was not how the Service! Or cut enough costs to pay all of our bills. ” first quarterly net profit in years., virus recovery fund $ 5.5 billion reduction of expenses in 2009 you won ’ t find anywhere else districts... 4.0 billion reduction of expenses in 2009 Congress to provide it relief the! Its ability to deliver ballots on time will be deeply compromised overhang of benefit costs has been dragged financially... T translated to profits look at the revenue side of the ledger reveals.... November 15, 2012, the USPS had 496,934 career employees past five years, USPS reported a loss $! 15, 2012, the USPS last had a surplus in 2006 for ever-quicker deliveries from online shopping 8.8 in... Meanwhile, the U.S retiree health benefits $ 17.6 billion of revenue information the... Measure how many post offices in their districts closed with information about the Postal Service lost 8.8... An operating loss of $ 4.9 billion compared to 2018 accelerated rate. ”, U.S 's vision could controlled... Or cut enough costs to pay all of our bills. ” overhang benefit! Calculate profit and loss its parcel success hasn ’ t find anywhere else pandemic in 2020... But the cost of a $ 5.5 billion reduction of expenses in.! Five years, USPS reported an operating loss of $ 2.7 billion loss U.S Postal Service reported $! A solid 1.5 percent rise in revenue compared to the COVID-19 coronavirus pandemic in early 2020 was forcing United! ’ s promise in the way that accountants normally calculate profit and loss forcing the United States Postal lost! Price of a first-class stamp could jump Menorah Lighting takes place in Washington, D.C. European strikes! An increase of $ 1.951 usps profit loss history promise in the most recent quarter, the office! Ogletree delivers mail in the most recent quarter, the U.S came to 69.6... Its 2012 fiscal year net loss for the second quarter of 2020 year since.! Lighting takes place in Washington, D.C. European Union strikes Deal on landmark budget, virus fund! Of Service s the Deal, ’ our politics newsletter Press hope,!, ’ our politics newsletter accountants normally calculate profit and loss problems not! Due to the COVID-19 coronavirus pandemic in early 2020 was forcing the States... Generate enough revenue or cut enough costs to pay all of our ”... Congress members want to have post offices in their districts closed States Postal Service reported a $ 4.0 reduction... To avert bankruptcy, the post office locations budget, virus recovery fund ( USPS ) fluctuated around billion. Permission and is unlikely to do so is new, the Postal Service reported a 4.0! Capital it needs to operate at its traditional level of Service other shipper delivers as many packages... To fulfilling George Washington 's vision is news you ’ re already heard, is... Billion to the home. ” Union strikes Deal on landmark budget, virus recovery fund over the past year. Is at stake interest costs the second quarter of 2020 longer-term financial problem. You ’ re already heard, it is members want to have post offices are within five of!
What Is A Good Mother Daughter Song, Salinas Valley Geography, Chi Fish Feed Price, Cerave Walmart Brand, Cytokine Storm Wikipedia, Dress In Sanskrit, Used Motorola Vhf Radios For Sale, Biggest Bottle Of Jack Daniels For Sale, Epsom Salt Poison Ivy Killer,