Quotes: US MENA   Enter Symbol: NewsLetter: Search: advanced

US Postal Service bleeds $16 billion  Join our daily free Newsletter

MENAFN - AFP - 15/11/2012

No. of Ratings : 0
Add to Mixx!


 


(MENAFN - AFP) The US Postal Service tripled its losses in 2012, bleeding 15.9 billion as the state-owned enterprise faces tough competition and what it calls onerous and unfair retirement funding requirements.

The US mail said its losses rocketed in the year to September 30 from a 5.1 billion loss last year, with more than 11 billion sucked off to pre-fund health benefits for service retirees long into the future.

As it has over recent years, USPS issued a call for new legislation easing the pressure on it from retirement benefit funding obligations and allowing it more flexibility on delivery times, product range and pricing.

The country's main mail operation said that unlike any other agency or business, it is required to pre-fund far into the future health care obligations for future retirees.

"It's critical that Congress do its part and pass comprehensive legislation before they adjourn this year to move the Postal Service further down the path toward financial health," said Postmaster General and USPS chief executive Patrick Donahoe.

Fighting back the challenge of agile competition from Fedex and UPS in the more lucrative parcel delivery business, USPS said its package operations brought in 8.7 percent more revenue to hit 11.6 billion.

But overall mail volume continued to shrink, by 5.1 percent, and operating revenues fell nearly one percent, to 65.2 billion.

USPS claimed that its operating losses fell due in part to improved productivity, largely from a 2.3 percent cut in work hours.

Chief financial officer Joseph Corbett said that despite having hit its debt limit, USPS continues to meet its delivery obligations and pay suppliers on time.

"Our liquidity continues to be a major concern and underscores the need for passage of legislation that gives the Postal Service a more flexible business model to improve its cash flow," said Corbett.

The call came as US political leaders head into tough talks aimed at slashing government spending.


 






  MENA News Headlines


 
Click to Apply






Google

 
 

Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  
 

Middle East North Africa - Financial Network
Arabic MENAFN

Main News
News By Industry
News By Country
Marketwatch News
UPI News
Comtex News

IPO News
Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices

US Markets Details

Commodoties

Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks
 

Algeria 
Bahrain 
Egypt 
Iraq
Jordan 
Kuwait 
Lebanon
Morocco 
Oman 
Palestine
Qatar 
Saudi Arabia 
Syria
Tunisia 
UAE 
Yemen

Weather
Investment Game
Economic Calendar
Financial Glossary

My MENAFN
Portfolio Tracker

Voting

Financial Calculators

RSS Feeds [XML]

Corporate Monitor

Events

Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters


 
© 2000 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help