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Gerresheimer Expects Significant Positive Effects from the US Tax Reform in 2018


News provided by

Gerresheimer AG

23 Jan, 2018, 20:57 GMT

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DÜSSELDORF, Germany, January 23, 2018 /PRNewswire/ --

On December 22, 2017, the US President signed the US tax reform, also known as the Tax Cuts and Jobs Act. 

The main changes from Gerresheimer's standpoint concern the reduction of the federal corporate tax rate from previously 35 % to now 21 % effective from January 1, 2018 and the elimination of certain previously available deductions from taxable income. There are also additional restrictions on the tax deductibility of certain expenses.

As a result of these changes, we anticipate a one-time deferred tax benefit from the revaluation of deferred tax assets and liabilities of our US subsidiaries included in the consolidated financial statements between USD 50 million and USD 55 million for the 2018 financial year, recorded in the first quarter of 2018.

In addition, the changes from the US tax reform have a positive effect on current income taxes. If these changes had already been applied for the 2017 financial year, this would have had a positive effect on current income taxes and thus also on our 2017 net income in the low single digit million Euro amount.

Technically, these effects have a positive effect on the adjusted earnings per share after non-controlling interests.

For further information: http://www.presseportal.de/nr/9072/dokument?langid=2

Gerresheimer AG
Klaus-Bungert-Straße 4
40468 Düsseldorf
Germany

Jens Kürten
Group Senior Director Communication & Marketing
Telephone   +49 211 6181-250
Telefax     +49 211 6181-241
E-Mail      j.kuerten@gerresheimer.com
Internet    http://www.gerresheimer.com

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