Balfour Beatty expects benefits from US tax reforms
Source - SMW
Balfour Beatty expects a positive impact from US tax reforms.
It said the reduction in US federal corporate income tax rates from 35% to 21% would lead to a reduction in the effective tax rate on US earnings from c.40% to c.26% in 2018 and beyond.
It said that as a result of this reduced tax rate on US assets the directors' valuation of the investments portfolio would increase by approximately £95 million.
It said that in addition, the group expects 2017 earnings will benefit from a non-underlying one-off non-cash credit from the revaluation of US deferred tax liabilities.
Based on the net deferred tax liabilities at the end of 2016 this credit is expected to be approximately £20m.
At 9:26am: (LON:BBY) Balfour Beatty PLC share price was +8.15p at 299.25p