On December 22, 2017, President of the United States signed tax reform legislation which includes, among other things, a reduction in the USA federal corporate income tax rate from 35 percent to 21 percent from the beginning of the tax year 2018.
The change will have a favorable impact on Metso's effective tax rate going forward. In the financial year 2017, the change will reduce Metso's deferred tax asset. According to a preliminary analysis, Metso estimates to report a reduction in deferred tax asset of approximately EUR 10 million in Q4 2017 and a corresponding deferred tax expense in the income statement.
The change in the deferred tax asset does not have any cash flow effect. Additionally, the change does not impact the time frame when the deferred tax asset is expected to be utilized.
Metso is a world leading industrial company serving the mining, aggregates, recycling, oil, gas, pulp, paper and process industries. We help our customers improve their operational efficiency, reduce risks and increase profitability by using our unique knowledge, experienced people and innovative solutions to build new, sustainable ways of growing together.
Our products range from mining and aggregates processing equipment and systems to industrial valves and controls. Our customers are supported by a broad scope of services and a global network of over 80 service centers and about 6,000 services professionals. Metso has an uncompromising attitude towards safety.
Metso is listed on the Nasdaq Helsinki in Finland and had sales of about EUR 2.6 billion in 2016. Metso employs over 11,000 people in more than 50 countries. Expect results.
For further information, please contact:
Jarno Siivola, Vice President, Tax, Metso Corporation, tel. +358 50 468 1856