HeidelbergCement warns of knock to profit in 2017 before boost in 2019 following US tax reform

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US: HeidelbergCement expects its profit to be negatively effected in 2017 following reforms to the US tax system. Following a change in the rules from 22 December 2017 the federal corporate tax rate has been reduced from 35% to 21% from the start of 2018. In addition, the regulations regarding the utilization of loss carryforwards were changed. This has affected deferred tax assets on losses and interest carried-forwards that are expected to reduce the group’s balance sheet by Euro200m in its annual report.

However, the company still expects a ‘significant’ increase of 2017 group share of profit before one-time effects. In addition in 2019 the major reduction of the effective tax rate in the US is anticipated to have a positive effect on group net profit and cashflow.

Last modified on 03 January 2018

URL: https://globalcement.com/news/item/6916-heidelbergcement-warns-of-knock-to-profit-in-2017-before-boost-in-2019-following-us-tax-reform

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