BMW Expects Significant Gain in 2017 Profit From U.S. Tax Reform
By Max Bernhard
Luxury car maker BMW AG (BMW.XE) said that it expects the U.S. tax reform to have a positive impact on its group net profit in 2017.
A reduction of the U.S. federal income tax, which comes into effect on January 1, will have a positive impact on deferred taxes.
The reform is expected to add between EUR950 million ($1.13 billion) and EUR1.55 billion to 2017 net profit, the car maker said Friday, citing initial calculations.
The effect of a lower tax rate--including potential negative effects--in 2018 can't currently be quantified with "reasonable certainty," BMW said.
Write to Max Bernhard at Max.Bernhard@dowjones.com; @mxbernhard
(END) Dow Jones Newswires
December 27, 2017 01:48 ET (06:48 GMT)Copyright (c) 2017 Dow Jones & Company, Inc.