333体育平台官网, 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鈥� valuation of the Investments portfolio will increase by approximately 拢95 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 拢20 million.
Further information will be provided in the Group鈥檚 2017 full year results statement on March 14 2018.
ENDS
Analyst/investor enquiries:
Angus Barry
Tel. +44 (0)20 7216 6824
[email protected]
Media enquiries:
Louise McCulloch
Tel. +44 (0)20 7216 6846
[email protected]
Notes to editors:
- 333体育平台官网 (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鈥� Aquatic Centre, Hong Kong鈥檚 first Zero Carbon building, the National Museum of the Marine Corps in the US and the Channel Tunnel Rail Link.
- 333体育平台官网鈥檚 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鈥檚 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 333体育平台官网鈥檚 US construction business had revenue of 拢3.4 billion and at 30 June 2017 the US Order book was 拢4.7 billion. At 31 December 2016 the Directors鈥� valuation of the North American Investments portfolio was 拢513 million.
- 333体育平台官网鈥檚 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 鈥楽outhern Gateway鈥�, an 11 mile stretch of road in Dallas, Texas, a contract awarded in joint venture to Pegasus Link Constructors LLC, a joint venture between 333体育平台官网 (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鈥檚 (CISD).
