Konecranes Commentates on Tax Reform

A new tax reform legislation will come into effect in the USA, which includes, among other things, a reduction in the U.S. federal corporate income tax rate from 35 to 21% from the beginning of the tax year 2018 and one-time tax expense for undistributed profits on overseas assets for US companies.

The tax reform will reduce Konecranes’ deferred tax assets in financial year 2017. According to a preliminary analysis, Konecranes estimates to report a reduction in deferred tax assets of approximately €15 million in Q4 2017 and a corresponding tax expense in the income statement as change in deferred taxes.

The change in the deferred tax assets does not have any cash flow effect for Konecranes Group in the financial year 2017. Additionally, the change does not impact the time frame when the deferred tax assets are expected to be utilized.

The tax reform will reduce Konecranes’ deferred tax assets in financial year 2017.