Monday, November 19, 2012

USPS Cash on Hand Equals 1 Week's Pay

The U.S. Postal Service has cash on hand equal to about a week’s pay for its 525,000 employees, in the best cash-flow environment it expects to have this fiscal year.
That shows how close to the edge the mail and package agency is, as it appeals to Congress to allow major cost cuts it can’t implement on its own.
“It’s a pretty dire situation,” said Kevin Sterling, a BB&T Capital Markets analyst who follows freight-delivery companies including FedEx Corp. and United Parcel Service Inc. (UPS) that compete with the Postal Service.