<p>New Zealand takeover target Tranz Rail will record a lower-than-expected operating profit of NZ$40m for the financial year.</p> <p>The company has blamed the result on soft trading figures in May and June, particularly in the Rail Services Group, and additional expenses occurred with asset sales.</p> <p>There was also a change in the accounting treatment of NZ$3.1m worth of "box" company sales, Tranz Rail said.</p> <p>After foreign exchange gains of NZ$12m on the Arartere lease and a tax credit of NZ$4.5m, Tranz Rail said it expects to record a net profit after tax of more than NZ$30m.</p> <p>Tranz Rail is forecasting an operating profit of $48m for the 2004 financial year. </p> <br />