USPS Q3 Loss is $740 Million, Despite Efficiency Efforts

Donahoe added that the Postal Service's five-year business plan does provide at least $20 billion in savings and creates a financially sustainable business model to support America’s residential and business mailing and shipping needs well into the future.

Contributing to the third quarter loss were continued expenses for the legally-mandated prefunding of retiree health benefits, the continuing decline of First-Class Mail volume and the continuation of six-days-per-week of mail delivery. The quarter’s operating expenses were reduced by $918 million due to a change in the discount rate for workers’ compensation. Future cash payments for workers’ compensation must be converted to present-day dollars, or discounted, by applying the current rates at which the liability could theoretically be settled.