WASHINGTON — The Postal Service, after making a profit in 1986, will lose much more than expected in fiscal 1987, as much as $225 million, due to slow growth in mail volume and budget overruns, Postmaster General Preston R. Tisch said today.
Tisch, talking to reporters at the National Press Club, said the Postal Service had projected it would break even or lose, at most, $1 million in the fiscal year that ended Sept. 26.
Early figures, however, show the mail service will lose between $200 million and $225 million on revenues of about $35 billion, Tisch said, adding that he was not happy with the results.
The Postal Service had expected about $500 million more in revenues for the period, but mail volume increased slower than projected. At the same time, attempts to trim expenditures fell $105 million short of what was planned.