The U.S. Postal Service’s delivered a $5.2 billion loss for the three months ended June 30, despite $3.3 billion (9%) in revenue increases in shipping and packaging services. Officials attributed losses in part to due to declining volume of first class mail (4.4% from the previous quarter) and a congressional mandate to pre-fund retirement health care benefits.
The service is tagged with a health care funding mandate, a $5.5 billion amount that was due to the federal government on Aug. 1. It remains unpaid as is an expected additional default of $5.6 billion will be in September unless the U.S. Congress steps in with funding assistance. The unpaid balances represent a drag on the agencies balance sheet.
The third quarter loss brought total losses for the year to $11.6 billion, compared to $5.7 billion for the same period a year earlier. Eighty percent of the losses in fiscal 2012 are due to the Health Care Mandate law requiring that the service prepay retiree healthcare benefits.Pages: