Specialty chemicals company LANXESS announced on December 27 that although the tax reform in the United States will have a positive impact on the company's cash flow and earnings in the long term, the company will still book one-time charges in the fourth quarter.
LANXESS expected repatriation tax will enable the company's fourth quarter net income and earnings per share was an additional one-time levy up to 50 million euros (59.9 million US dollars) in taxes.
LANXESS said the charge will not affect the earnings per share before amortization, it will not affect the cash flow performance in FY 2017.
However, LANXESS also said the tax reform is expected to have a positive impact in the next few years due to lower US corporate income tax rates, which the company now expects to be at the low end of the previous guidance of 30% to 35%.