Wednesday, December 07, 2005

USPS ends 2005 in the black

Associated Press, Reuters, ABC News, and other media outlets across the country report “the Postal Service is in a position not many Americans can claim: debt free.”

Record revenues of $70 billion and record mail volume of 212 billion pieces allowed USPS to finish 2005 with a $1.4 billion surplus that’s been used to reduce the Postal Service’s $11 billion in debt to zero and maintain stable rates since 2002.

“Financially, we’re in the best position we’ve been since the 1970s,” said Postmaster General Jack Potter at yesterday’s meeting of the Board of Governors. “Despite the strong financial and productivity records of recent years, we are facing a modest increase in postage rates in January.”

The reports noted the price change was compelled by 2003 legislation requiring the Postal Service to put aside more than $3 billion into escrow each year beginning in 2006.

A USPS news release says, "Although today's postal financial news is positive, Potter cautioned that the forecast for 2006 projects a surplus from operations, but coupled with an anticipated escrow requirement of $3.1 billion, the Postal Service will likely have a net deficiency approaching $2 billion."

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posted by Don Schilling at 7:14 AM