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Toll write-down exposes cracks in Japan Post's global strategy

Australian logistics firm's earnings slump looms large in investors' minds

Japan Post Holdings then President Taizo Nishimuro discusses the company's "global expansion" strategy at a news conference in Feb. 2015.

TOKYO -- Japan Post Holdings aims to leave past mistakes behind and prepare for a coming share sale with a multibillion-dollar write-down on an Australian logistics unit, but investors may not be able to look past such a huge loss.

Japan Post's board is expected to decide as soon as next week to book an impairment loss as high as 400 billion yen ($3.66 billion) for the year ended March 31 on goodwill accrued in the May 2015 acquisition of Toll Holdings. This would deal a massive blow to Japan Post's group net profit for the fiscal year, forecast at 320 billion yen. Final earnings are due out mid-May.

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