Paul Ausick reported for 24/7 Wall Street on Feb. 8, 2013, USPS Deficit Shrinks. The U.S. Postal Service has said that its fourth-quarter deficit totaled $1.3 billion. That represents $2 billion less than the deficit which the service ran in the fourth quarter of 2011. The USPS has said that a decrease in first-class mail and the Congressional requirement that the Postal Service fully fund its retirement fund for the next 75 years have been the major factors behind the string of losses.
The operating revenues in the fourth quarter were down just 1%, to $17.7 billion as holiday cards and packages increased sales. Now, the recent announcement that the USPS would end Saturday mail delivery is anticipated to save $2 billion a year. On every previous occasion Congress has expressly denied the Postal Service’s attempts to shut down its Saturday delivery.
Ron Nixon, of the New York Times, has also reported on the financial situation for the post office, Post Office Slows Rate of Losses for Quarter. The holiday shipping and the 2012 election helped the Postal Service decrease its losses. However, the agency has continued to have financial trouble. The total mail volume has continued to decrease, at 43.5 billion pieces for the quarter, which is down from 43.6 billion for the same period a year earlier.
