Oct 12 (Reuters) - Britain's Mobico cut its operating profit forecast for the year and suspended its dividend on Thursday, saying surging costs were making a full recovery in profitability take longer than expected.

The company, previously known as National Express, also said it was planning to sell its North America School Bus business in early 2024.

The transport operator expects operating profit for the year to be about 175 million pounds to 185 million pounds ($215.60 million $227.92 million) down from its earlier forecast of between 200 million pounds and 215 million pounds.

Mobico did not say when it expects profitability to recover fully.

($1 = 0.8117 pounds) (Reporting by Radhika Anilkumar and Yadarisa Shabong in Bengaluru; Editing by Nivedita Bhattacharjee)