US post has $2.2 bln loss, warns of Sept insolvency - Reuters
The U.S. Postal Service posted a $2.2 billion net loss in its second quarter and said it might be unable to pay its debts by September.
The agency, which has been battling falling mail volumes and competition from FedEx and United Parcel Service, said it expects to hit its borrowing limit by the Sept. 30 end of the fiscal year, and will have to default on payments to the federal government unless Congress intervenes.
The Postal Service -- which posted a net loss of $8.5 billion at the end of fiscal 2010, its fourth straight year of losses -- has asked Congress for permission to cut Saturday mail delivery.
The U.S. Postal Service posted a $2.2 billion net loss in its second quarter and said it might be unable to pay its debts by September.
The agency, which has been battling falling mail volumes and competition from FedEx and United Parcel Service, said it expects to hit its borrowing limit by the Sept. 30 end of the fiscal year, and will have to default on payments to the federal government unless Congress intervenes.
The Postal Service -- which posted a net loss of $8.5 billion at the end of fiscal 2010, its fourth straight year of losses -- has asked Congress for permission to cut Saturday mail delivery.
