Dayton Business Journal...
Future in doubt as Postal Service loses $5 billion
Wednesday, November 16, 2011 

The U.S. Postal Service, in the midst of a potential reorganization that could close hundreds of facilities nationwide, including in the Dayton region, said Tuesday that it finished its fiscal year with a loss of $5.1 billion, according to CNNMoney. 

The loss would have been even greater -- $10.6 billion -- if Congress hadn’t allowed the Postal Service to delay a payment to the retiree health plan. But it still has to make the $5.5 billion payment Nov. 18 unless Congress delays it again. Otherwise, USPS said, it would likely default on the payment. The Postal Service does not receive taxpayer funds but is subject to Congressional oversight. 

It was continued bad news for first-class mail, which fell 6 percent to $32.2 billion. USPS said that first-class mail is its most profitable product. Revenue from Priority Mail, Express Mail and other products rose 6 percent, as did Standard Mail. 

USPS has had a rough time lately as competition from carriers such as FedEx Corp. and United Parcel Service, e-mail and the decline of regular first-class mail has put the squeeze on it, as well as expanding costs and the $5.5 billion Congressionally-mandated health plan benefit. 

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