Daimler AG (DAI.XE) said on Friday that it expects a 1-billion-euro ($1.19 billion) increase in its group net income in 2017 as a result of the U.S. tax reform law.
If it wasn't for other issues unconnected with the tax reform, the total net income boost would have been EUR1.7 billion, Germany's Daimler said.
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The law signed by U.S. President Donald Trump includes the reduction of the federal corporate income tax rate from 35% to 21%, starting Jan. 1.
The automotive company said the positive income tax benefit will not affect the free cash flow of its industrial business or its earnings before interest and tax for the year.
Daimler is analyzing the potential effects of other measures included in the law, it said.
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(END) Dow Jones Newswires
December 22, 2017 13:44 ET (18:44 GMT)