Postal Service loses $3.5 billion in third quarter

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  1. cheryl

    cheryl I started this. Staff Member

    Postal Service loses $3.5 billion in third quarter - Reuters

    The Postal Service reported a quarterly net loss of $3.5 billion on Thursday and said it will likely have a cash shortfall going into 2011.

    The agency, which delivers nearly half the world's mail, has reported net losses in 14 of the last 16 fiscal quarters.

    Revenue in the third quarter that ended June 30 fell $294 million to $16 billion from a year ago, while expenses were $789 million higher at $19.5 billion, due largely to higher workers' compensation costs and retiree health benefits.

    "Given current trends, we will not be able to pay all 2011 obligations," said Joseph Corbett, the agency's chief financial officer.