The U.S. Postal Service reported a net loss for the third quarter of $281 million, $80 million less than the anticipated loss of $361 million.
Richard J. Strasser Jr., USPS executive vice president and CFO, told the Postal Service Board of Governors yesterday that expenses were reduced $876 million below plan, and 0.7% below the same period last year. During the first three quarters of this fiscal year, the Postal Service trimmed 13,750 career employees from its rolls and reduced more than 54 million work hours below last year’s level.
The Postal Service’s finances continue to be hurt by reduced mail volumes. Strasser reported that overall mail volumes dropped 1.2 billion pieces, or 2.5% below the same quarter last year. Standard Mail volume was 738 million fewer pieces than last year and accounted for about 60% of the total decline in mail volume. First-Class Mail dropped 231 million pieces below last year.
The Postal Service expects continuing loss in volume during the fourth quarter but expects to continue reducing expenses by another $500 million.
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