Meggitt PLC Preliminary US Tax Reform Assessment (8572C)

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RNS Number : 8572C

Meggitt PLC

25 January 2018

25 January 2018

Meggitt PLC

Preliminary US Tax Reform Assessment

Meggitt PLC ("Meggitt" or "the Group") notes the enactment of the Tax Cuts and Jobs Act in the United States on 22 December 2017. We continue to work through the full impact of this legislation on Meggitt and will give further guidance at our 2017 full year results presentation on 27 February 2018.

At this stage we expect that the measures included in this legislation will give rise to a significant non-cash exceptional tax credit in our 2017 financial results due to the revaluation of certain US deferred tax liabilities.

Our preliminary assessment is that the announced changes will reduce the Group's headline underlying effective tax rate to 20-22%1, compared to the previously guided planning rate for 2017 of 24%.

 
 Enquiries 
 
 Meggitt PLC                                 [phone] 
 Doug Webb, Chief Financial Officer 
 Adrian Bunn, Vice President Strategy and 
  Investor Relations 
 
 FTI Consulting                              [phone] 
 Deborah Scott, Senior Managing Director 
 Nick Hasell, Managing Director 
 

Cautionary statement

This trading update, including information included or incorporated by reference in this trading update, may contain forward-looking statements concerning Meggitt PLC or its group. Generally, the words "will", "may", "should", "continue", "believes", "expects", "intends", "anticipates" or similar expressions identify forward-looking statements. Such forward-looking statements involve risks, uncertainties and other important factors which could cause the actual results, performance or achievements of the Meggitt group or the market and economies in which the Meggitt group operates to be materially different from those expressed or implied by such forward-looking statements. Many of these risks and uncertainties relate to factors that are beyond the ability of Meggitt PLC or its directors to control or estimate precisely, such as future market conditions and the behaviours of other market participants, and therefore undue reliance should not be placed on such statements, which speak only as at the date of this trading update. Neither Meggitt PLC, nor any of its group undertakings, nor the directors of any of them, assumes any obligations to, and do not intend to, update these forward-looking statements, except as required pursuant to applicable law.

1 NOTE: Stated on 2017 GAAP basis, prior to the implementation of IFRS15/16

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January 25, 2018 02:00 ET (07:00 GMT)