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Postal News
FOR IMMEDIATE RELEASE
July 2, 2002
Contact: (202) 268-2155
Release No. 02-054
Reduced Mail Volumes Continue To Impact Postal Service Finances
ANCHORAGE, AK. - Reporting today on the financial condition of the Postal Service, Chief Financial Officer and Executive Vice President Richard J. Strasser Jr. told the Postal Service Board of Governors the net loss in Quarter 3 was $281 million, $80 million less than the anticipated loss of $361 million. Expenses were reduced $876 million below plan, and 0.7 percent below the same period last year.
Strasser also reported that overall mail volumes dropped 1.2 billion pieces, or 2.5 percent below the same quarter last year. Standard Mail volume was 738 million fewer pieces than last year and accounted for about 60 percent of the total decline in mail volume. First-Class Mail dropped 231 million pieces below last year.
Continued success in controlling expenses has been due to aggressive work-hour cuts, including management and staff reductions. 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 expects continuing loss in volume during Quarter 4 but expects to continue reducing expenses a further $500 million while maintaining quality service.
In other Board action:
Service performance
The Postal Service reported achieving the second-highest quarterly score ever recorded for First-Class Mail overnight delivery service performance: 94 percent for the period of February 23, 2002, through May 17, 2002. This marks the nineteenth consecutive quarter in which External First-Class (EXFC) service performance scores have hit or exceeded 93 percent.
Nine performance clusters or postal districts achieved scores of 96 percent, including the Big Sky, Erie, Albany, Dakotas, Greater Michigan, San Jose, Central Plains, Spokane and Kentuckiana. Twenty-six additional Performance Clusters attained scores of 95 percent.
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