Executive Summary
In FY 2010, the U.S. Postal Service lost $8.5 billion — more than its two previous annual losses combined. The Service has lost money in every quarter except one since the first quarter of 2008. Revenue for the year was down $1.04 billion, or 1.5 percent, relative to FY 2009. Total volume declined by about 6.2 billion pieces, or 3.5 percent, compared to last year. Operating expenses increased by $3.6 billion, or 5.0 percent, year over year.
Postal management has made it clear that its new products and services will be crucial to its evolving business plan. Some of these new offerings may be controversial, as they could put the Postal Service in direct competition with the private sector or into gray areas where they could potentially come into conflict with current statutory or regulatory requirements.
USPS made the scheduled $5.5-billion payment to prefund its retirees’ health benefits and forecast at the end of FY 2010 that it would run out of cash and reach its statutory debt limit within a year.
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