Mendoza School of Business

U.S. Postal Service Posts Quarterly Loss of $5.2 Billion

Published: August 10, 2012 / Author: Angela Keane



The following is an excerpt from a Bloomberg article that quotes Management Professor Jim O’Rourke about the U.S. Postal Service’s quarterly loss. This article also appeared in the San Francisco Chronicle.  To read the entire article visit: U.S. Postal Service Posts Quarterly Loss of $5.2 Billion
 

The U.S. Postal Service’s announcement yesterday that it lost $5.2 billion in its third quarter added to calls for Congress to help the agency that’s supposed to run itself like a business and in many ways can’t.

The Washington-based service yesterday reported its 11th consecutive quarter of losses and said it may lose $15 billion in the fiscal year that ends Sept. 30. The loss was more than any quarterly net deficit in the past 12 months among companies in the Standard & Poor’s 500 and the Nasdaq Stock Market, according to data compiled by Bloomberg.

Excerpt

“It’s going to take a calamity,” said James O’Rourke, a University of Notre Dame management professor. “When the post office literally runs out of money to pay its employees and suppliers, that’s what it’s going to take to get Congress to act. They’ve shown little interest to this point.”

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