New Zealand Post is warning it won't meet its profit forecasts this year.
The state-owned postal operator's chairman, John Roche, says a previous profit target of $60.8 million won't be met because of the Christchurch earthquake and weak trading conditions.
Mr Roche says the February earthquake is expected to cost the group $35 - $40 million in the current financial year. Bad debt provisioning could also remain an issue next year.
He says flat economic conditions are likely to result in some asset values being impaired, and New Zealand Post is still trying to sell part of its 50-50 joint venture with DHL in Australia.