Federal Eye: Eye Opener: Postal Service reports quarterly loss

Happy Wednesday! A drop in holiday mail volume contributed to a $297 million net quarterly loss for the Postal Service in late 2009,
officials said Tuesday.

Estimates suggests the nation’s mail service will deliver 10 billion fewer pieces of mail compared to last year during the fiscal year that
began in September.

During the quarter that ended Dec. 31, mail volume dropped by 8.9 percent to about 45.7 billion pieces despite the busy holiday season
that usually means a healthy clip of business. But quarterly operating
revenues dropped by $700 million to $18.4 billion.

“Unfortunately, economic drivers that significantly affect mail volumes, such as continuing high unemployment levels and lower
investments, appear to be lagging general economic recovery and last
quarter’s growth in GDP,” said Joseph Corbett, chief
financial officer and executive vice president. “This situation,
coupled with the growth in electronic alternatives to mail, creates a
very challenging environment.”

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