Re-sults  n pl [from Latin re + saltare that which leaps back] 1:  beneficial or tangible effects or resolutions 2:  what mailers get when they use the United States Postal Service 3:  the performance of the United States Postal Service during fiscal year 2002.

To the President, members of Congress, postal employees and the American people:

For the Postal Service, the year was marked by challenge and defined by change. Employees of this enduring symbol of national unity demonstrated an unequalled capacity to respond to a dramatically changing landscape.

Following the attacks of 9/11, America’s air-transportation system was grounded. One month later, bioterrorist attacks challenged our own network while claiming the lives of two of our employees. The men and women of the Postal Service worked quickly–and successfully–to reconfigure a national mail-processing and transportation network capable of protecting service and increasing safety.

The tragic events of that September day also intensified the recessionary effects on the mailing and advertising industry, with mail volume declining by 4.6 billion pieces by the end of the year. At the same time, our delivery infrastructure grew to reach 1.8 million new homes and businesses and we were faced with the extraordinary costs of responding to bioterrorism.

But we responded. We began the year with a focused plan to reduce costs, increase efficiency and improve service. We succeeded in all areas. We cut or otherwise avoided $2.8 billion in costs. More than 23,000 career positions were eliminated—through attrition. New automation contributed to continued, strong productivity growth. And, following a suggestion by the chairman of the Postal Rate Commission, we approached our major stakeholders and took a bold step that enabled us to impliment new postage rates in June, 2002, rather than in the fall. This gained us an additional $1 billion in revenue.

As a result, and despite the impacts of the recession and the terror attacks, we were able to close the year with a loss that was almost $700 million below original projections and half of last year’s. None of the $762 million the Administration and Congress generously appropriated to the Postal Service to protect the security of the mail was used for operations.

At the same time, our management team and employees achieved record service performance and customer satisfaction during a year in which two major mail processing facilities were out of service—Brentwood in Washington, DC., and the plant in Trenton, NJ. Our service performance levels demonstrate our commitment to maintaining the mail as a fundamental personal and business communications tool.

Through it all, we also accelerated the pace of change in April with the completion of our Transformation Plan. This comprehensive Plan is a blueprint for the future of the Postal Service. It identifies the short- and long-term changes necessary for improving operational efficiency, driving growth by adding value to our products and services, and enhancing a performance-based culture. The Plan will continue to guide all of our activities in the years ahead.

At the same time, we are maintaining our leading role in the critical public policy discussion about the legislative changes necessary to protect the fundamental right of affordable, universal mail service for every American—no matter who, no matter where. We look forward to continuing this important conversation with our customers, our employees and the public officials who represent them.

In the near term, we will seek moderate legislative reform that will support the Postal Service’s ability to provide affordable, universal mail service. An example is proposed legislation that would permit the Postal Service to modify its payments to the Civil Service Retirement System. A recent analysis conducted by the Office of Personnel Management found that, at present funding rates, the Postal Service could overfund its liability by $71 billion. Passage of this legislation would permit the Postal Service to substantially reduce its debt and hold postage rates steady until at least 2006, while protecting the benefits of current and future retirees covered by this retirement system.

The men and women of the Postal Service delivered exceptional service during an extraordinary year. Their accomplishments have paved the way for even greater success over the next year.

Sincerely,

John E. Potter
Postmaster General and CEO

Robert F. Rider
Chairman, Board of Governors