Balfour Beatty PLC ESTIMATED IMPACT OF NEW US TAX LEGISLATION (1911C)
January 18 2018 - 2:00AM
UK Regulatory
TIDMBBY
RNS Number : 1911C
Balfour Beatty PLC
18 January 2018
18 January 2018
ESTIMATED IMPACT OF NEW US TAX LEGISLATION ON BALFOUR BEATTY
Balfour Beatty, the international infrastructure group, notes
that the US Government recently passed the Tax Cuts and Jobs Act
which contains significant tax reform measures.
Although the reforms are subject to further guidance and
interpretations from the US Authorities, the Group has made a
preliminary assessment of the implications of the changes.
The reduction in US Federal corporate income tax rates from 35%
to 21% will lead to a reduction in the effective tax rate on US
earnings from c.40% to c.26% in 2018 and beyond.
Furthermore, as a result of this reduced tax rate on US assets
the Directors' valuation of the Investments portfolio will increase
by approximately GBP95 million.
In addition to the above, 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 GBP20 million.
Further information will be provided in the Group's 2017 full
year results statement on March 14 2018.
ENDS
Analyst/investor enquiries:
Angus Barry
Tel. +44 (0)20 7216 6824
angus.barry@balfourbeatty.com
Media enquiries:
Louise McCulloch
Tel. +44 (0)20 7216 6846
louise.mcculloch@balfourbeatty.com
Notes to editors:
-- Balfour Beatty (www.balfourbeatty.com) is a leading
international infrastructure group. With 30,000 employees, we
provide innovative and efficient infrastructure that underpins our
daily lives, supports communities and enables economic growth. We
finance, develop, build and maintain complex infrastructure such as
transportation, power and utility systems, social and commercial
buildings.
-- Our main geographies are the UK, US and Far East. Over the
last 100 years we have created iconic buildings and infrastructure
all over the world including the London Olympics' Aquatic Centre,
Hong Kong's first Zero Carbon building, the National Museum of the
Marine Corps in the US and the Channel Tunnel Rail Link.
-- Balfour Beatty's US business is an industry-leading provider
of general contracting, at-risk construction management and
design-build services for public and private sector clients across
the nation. Performing heavy civil and vertical construction, the
company is consistently ranked among the nation's largest building
contractors, and is the No. 6 Domestic Building Contractor as
ranked by Engineering News-Record. To learn more, visit
www.balfourbeattyus.com
-- In 2016 Balfour Beatty's US construction business had revenue
of GBP3.4 billion and at 30 June 2017 the US Order book was GBP4.7
billion. At 31 December 2016 the Directors' valuation of the North
American Investments portfolio was GBP513 million.
-- Balfour Beatty's current portfolio of projects in the US
includes the US$697 million contract to undertake electrification
of the 52-mile Caltrain rail corridor between San Francisco and San
Jose, laying the foundations for the future operation of high speed
trains; the $625 million contract to reconstruct and improve the
'Southern Gateway', an 11 mile stretch of road in Dallas, Texas, a
contract awarded in joint venture to Pegasus Link Constructors LLC,
a joint venture between Balfour Beatty (45 per cent) and Fluor
Corporation (55 per cent) which will enhance traffic flow for
180,000 motorists every day for the Texas Department of
Transportation; the US$260 million Harrison Medical Centre project
in Seattle; and the US$100 million contract to serve as
construction manager for Cleburne Independent School District's
(CISD).
This information is provided by RNS
The company news service from the London Stock Exchange
END
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