U.S. Postal Service cites slowdown for second quarter decline

Source: Supply Chain Digital

Date :5/8/2008 5:25:45 AM

The United States Postal Service (USPS) blames $707 million loss in its fiscal second quarter on the slowing U.S. economy and a decline in mail volume.

Mail volume fell to 51.3 billion pieces for the quarter ended March 31, a 3.3 percent drop from a year earlier, the USPS said Wednesday.

"Weakness in the housing and credit markets, both of which are heavy users of mail, are leading the declines in mail volume," Postmaster General John Potter said in a statement.

Expenses

Despite the drop in mail volume, revenue rose 3.2 percent to $18.9 billion, reflecting last year's price adjustments.

However, higher fuel costs pushed expenses in the second quarter up 0.3 percent to $19.6 billion.

Overall during the first half of its fiscal year, the USPS said it generated $39.3 billion in revenue, while reporting a net loss of $35 million. Fiscal first-quarter profit was $672 million.

May 08, 2008