BMW Expects Significant Gain in 2017 Profit From U.S. Tax Reform

By Max Bernhard Features Dow Jones Newswires

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.

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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

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December 27, 2017 01:48 ET (06:48 GMT)