New Zealand Post is forecasting a reduced full-year profit because of a drop in income and a writedown of some of its assets.
Earlier this year, it forecast an underlying profit of $80.8 million, but after excluding one-off charges it now expects to make $73 million in the year to June - about 7% less than in the previous year.
The state-owned enterprise says its earnings have been hurt by the economy and the slow recovery from recession.
It says mail volumes, which makes up the bulk of income, continue to decline, while intense competition has hit the company's banking arm, Kiwibank.
There are also a number of one-off charges, including tax changes and writedowns in the value of property, aircraft and international mail business assets.
New Zealand Post expects to make a profit of $60.8 million in 2011.
