Postal Service reports $5.2B loss in 3rd Q

Aug. 9, 2012 at 6:00 PM
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WASHINGTON, Aug. 9 (UPI) -- The U.S. Postal Service reported a $5.2 billion loss Thursday in the quarter ending June 30.

The agency said revenue in shipping and packages grew 9 percent in the third quarter of its fiscal year. But in a release, it said that was not enough to balance the continued decline in the volume of first-class mail.

"Despite continued success in generating new package delivery revenue, improving efficiency and reducing costs, large losses are expected to continue until legislative changes are made in line with the Postal Service Business Plan to return to financial stability," officials said.

The agency is asking for a refund of more than $1 billion in pension plan overpayments, authorization to end Saturday mail delivery and an end to prefunding of retiree health benefits. The agency defaulted on a $5.5 billion prefunding payment Aug. 1 because it did not have the cash and expects to default on the next one.

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