Postal Profit

August 7, 1996

THE DAILY FED

Postal Profit

Postmaster General Marvin Runyon told the Postal Service's Board of Governors yesterday that USPS is likely to post its second consecutive year of more than $1 billion in profits, the Associated Press reported.

With just eight weeks to go in the fiscal year, the Postal Service is $1.6 billion in the black. That means the service is almost certain to have its second-best financial year ever, trailing only the $1.8 billion in profits USPS reported last year.

Runyon said the Postal Service's improved financial performance, which comes in the wake of an increase in postal rates at the beginning of last year, has enabled USPS to cut its outstanding debt from $6 billion to $2.7 billion.