OUTOTEC OYJ STOCK EXCHANGE RELEASE DECEMBER 27, 2017 AT 11.30 AM
Negative tax impact for Outotec from US tax reform
The President of the United States signed on December 22, 2017 a tax reform legislation, which will reduce the USA federal corporate income tax rate from 35% to 21% from the beginning of the tax year 2018. According to a preliminary analysis, the change will cause Outotec a maximum EUR 10 million tax expense, which Outotec will reduce in the fourth quarter of 2017 according to the accounting principles from its deferred tax asset related to the tax receivables from the USA.
The reduction of the deferred tax asset does not have an impact on Outotec's cash flow or financial guidance for 2017, but it will weaken Outotec's reported earnings per share for 2017. In addition, the change does not impact the time frame when the deferred tax asset is expected to be utilized.
For further information please contact:
Jari Ålgars, CFO
Tel. +358 20 529 2007
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