US Tax Reform to Result in EUR1.2 Billion Non-Recurrent Income, Says Iberdrola

Iberdrola SA (IBE.MC) said Thursday that approval of U.S. tax reforms will result in a non-recurrent income for 2017 of 1.2 billion euros ($1.4 billion) after taxes.

The Spanish company said these are preliminary calculations based on adjustments in several accounting items currently being analyzed.

Iberdrola doesn't expect the non-recurrent income to materially alter its consolidated net profit for the year. Its impact will be offset by the application of management measures to optimize the business and the final accounting value of its Brazilian business after the completion of a share capital increase at its Neoenergia subsidiary.

Such measures could include potential write-downs in the accounting values as a result of the exit or discontinuation of certain businesses--such as gas storage or engineering--and plans to improve operating efficiency.

These measures will positively affect its consolidated earnings in the coming years, Iberdrola said.

Definitive details on the measures will be communicated to the Spanish regulatory authorities in the presentation of the fiscal year results for the company, to be carried out in February.

Write to Marc Bisbal Arias at marc.bisbalarias@dowjones.com

(END) Dow Jones Newswires

December 28, 2017 08:17 ET (13:17 GMT)