The Weir Group PLC
LEI Number: 549300KDR56WHY9I3D10
Preliminary assessment of the impact of US Tax reform legislation
The Weir Group notes the recently enacted Tax Cuts and Jobs Act ("the Act"), which came into effect on 1 January 2018. While work is ongoing and we will provide more detailed information with the publication of our 2017 Annual Results, our preliminary impact assessment is noted here.
The measures included in the Act, subject to any further specific guidance on interpretation being released, are likely to give rise to an initial one-off non-cash tax credit in 2017 resulting from the revaluation of the Group's aggregate US Deferred Tax Assets and Deferred Tax Liabilities following the reduction in the US federal rate of corporate income tax.
Going forward, from 2018 the favourable impact of the headline federal rate reduction is likely to be largely offset by greater restriction on the level of interest deduction allowed in the US, leaving the overall impact of the Act on the Group's effective tax rate broadly neutral. Based on this preliminary assessment, the Group's effective tax rate for 2018 is likely to be around 25%.
About The Weir Group PLC
Founded in 1871, Weir is one of the world's leading engineering businesses providing mission-critical equipment and aftermarket solutions to energy and natural resources customers in more than 70 countries. The group, which employs around 15,000 people, comprises three divisions: Minerals; Oil & Gas; and Flow Control, and is headquartered in Glasgow, Scotland, UK.
Enquiries: |
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Investors: Stephen Christie |
+44 (0) 141 637 7111 / +44 (0) 779 511 0456 |
Media: Raymond Buchanan |
+44 (0) 141 637 7111 / +44 (0) 771 326 1447 |
Brunswick: Patrick Handley / Diana Vaughton |
+44 (0) 20 7404 5959 |
