The government projected Wednesday that the four entities taking over Japan Post's services will be in the black in fiscal 2008, but, without new business, profits at three of the units will have declined by the time the privatization process is completed in fiscal 2016.
According to estimates released by postal reform minister Heizo Takenaka, only the postal insurance company is expected to be in the red in fiscal 2007, when the 10-year privatization process is to begin.
The other three entities will take over mail delivery, postal savings and post office network management.