Tag: USPS

Postmaster General John E. Potter said today that aggressive cost cutting has resulted in USD11 billion in expense savings over the last three years, enabling him to reiterate his commitment to maintain current postage rates until 2006. “The Postal Service will continue to focus on the strategies identified in our Transformation Plan*, and we will continue to deliver the plan’s commitments ahead of schedule,” said Potter, at the monthly Board of Governors meeting. Three years ago the Postal Service committed to take USD5 billion in savings and cost avoidances out of the annual spending by 2006. In the first three years, Potter said USD4 billion has been saved. He added he expects to save more than USD1 billion in 2005.

The U.S. Postal Service had net income of USD 2.79 billion, or USD 703.3 million over budget, from Oct. 1 to July 31, the agency said last week. Also, mail volume was up, and expenses are under plan. USPS fiscal and operating statements showed that revenue totaled USD 57.6 billion, 0.1 percent better than planned, but down 0.3 percent from the year-ago period. Expenses of USD 54.8 billion were 1.2 percent under the planned budget, but up 2.6 percent versus the year-ago period. Total year-to-date mail volume of 171.5 billion pieces increased 1.3 percent from a year ago. Standard and International mail grew 5.1 percent and 4.6 percent, respectively. But several classes saw declines. Periodicals and Express Mail both fell 3.3 percent; Priority Mail, 2.4 percent; First-Class, 1.7 percent; and Package Services, 0.1 percent.

Congress is shortchanging the U.S. Postal Service under planned fiscal 2005 appropriations and should restore more than USD800 million in funding, Postmaster General John Potter said Aug. 31. In a letter to Rep. Ernest Istook, R-Okla., chairman of the House Appropriations subcommittee on Transportation, Treasury and independent agencies, Potter said programs to provide free mail for the blind and overseas voters and to secure postal facilities against future bioterror attacks are jeopardized by the lack of appropriations. The Postal Service wants nearly USD76 million to subsidize free mail services; the House spending bill would provide almost USD62 million.