U.S. Postal Service posts loss, even as package deliveries rise

[Eugene]

Source: Reuters

BUSINESS NEWS NOVEMBER 14, 2018 / 12:25 PM / UPDATED 40 MINUTES AGO

U.S. Postal Service posts loss, even as package deliveries rise

WASHINGTON (Reuters) - The U.S. Postal Service lost almost $4 billion in 2018 even as package deliveries rose, according to results released on Wednesday, potentially giving U.S. President Donald Trump ammunition against Amazon.com Inc (AMZN.O), which he claims pays too little for the agency’s services.

Trump, without presenting evidence, has accused the world’s largest online retailer repeatedly over the past year of taking advantage of USPS by not paying enough for deliveries to make the service profitable.

USPS reported operating revenue of $70.6 billion for fiscal year 2018, which ended on Sept. 30, as sales at its shipping and packages business rose 10 percent.

However, its net loss rose to $3.9 billion from a loss of $2.7 billion in 2017, hurt by rising pay and benefits and higher transport costs, such as gas prices.

-snip-

Read more: https://www.reuters.com/article/us-usa-postal-service-results/u-s-postal-service-posts-loss-even-as-package-deliveries-rise-idUSKCN1NJ2HS

[YessirAtsaFact]

1. The post office is not a business and was never intended to turn a profit

It exists so red necks (and others) living in the middle of nowhere can get mail delivery at a below market cost.

It is and always has been subsidized.

[JayhawkSD]

2. I'm not entirely clear on details, but...

This loss is bogus. It's caused by Congressional mandate having to do with pension and retiree health care funding that is not consistent with what private industry is required to do. If the USPS requirements were in line with those of private business and industry, they would be incurring minimal to no losses at all.

[elleng]

3. Right.