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March 2, 2010February 3, 2015Lexington Institute

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Postal TrendWatch — Q1 2010

March 2, 2010February 3, 2015Lexington Institute

Executive Summary

The U.S. Postal Service suffered a net loss of $297 million in the first quarter of FY 2010. The loss represents a slight improvement over the loss posted in Q1 FY 2009. Total mail revenue declined by $740 million relative to Q1 FY 2009. Volume for all categories of mail also declined, resulting in a total volume reduction of nearly 4.5 billion pieces compared to the same quarter last year.

According to the Postal Service, these revenue and volume declines are expected to continue. USPS projects a net loss of more than $7 billion for FY 2010. USPS revealed that several of its categories failed to cover their costs in FY 2009. The Service has renewed its efforts to begin offering non-postal products and services in order to help reverse its revenue decline. Independent government analysts are less than sanguine about such a strategy.

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