Lemminkäinen writes down deferred tax assets related to Norway and Sweden
LEMMINKÄINEN CORPORATION STOCK EXCHANGE RELEASE 5 JANUARY 2018 AT 9:15 A.M.
LEMMINKÄINEN WRITES DOWN DEFERRED TAX ASSETS RELATED TO NORWAY AND SWEDEN
In its financial statements 2017, Lemminkäinen will record a write-down for its deferred tax assets related to Norway and Sweden in accordance with IFRS standards.
On 30 November 2017, Lemminkäinen announced that it will start a programme to improve its competitiveness and profitability in its paving business in Sweden and Norway with activities such as lightening its operating model. Tax losses accumulated in the recent past in Norway and Sweden are causing significant uncertainty, when assessing their utilisation in accordance with the IFRS standards. According to the assessment, it is currently unlikely that sufficient taxable profit would be available in the future for the utilisation of the deferred tax assets. The write-down is made to the extent that the company has taxable temporary differences against which it will be able to use its unused tax losses.
The write-down will increase the company’s income tax expense in the income statement for 2017 and decrease the profit for the financial year. The write-down will not have an impact on the company’s profit guidance or cash flow for the year 2017. Lemminkäinen had recognised deferred tax assets of approximately EUR 10 million in Norway and approximately EUR 3 million in Sweden in September 2017.
Most of the deferred tax assets related to Norway and Sweden that will be written down will not expire and their future utilisation is not dependent on the accounting treatment. The company reassesses regularly the recognition criteria for the off-balance sheet deferred tax assets.
Ilkka Salonen, CFO
Tel. +358 2071 53378
Nasdaq Helsinki Ltd
Lemminkäinen is an expert in complex infrastructure construction and building construction in Northern Europe and one of the largest paving companies in its market. Together with our customers and 4,700 professionals we employ, we build a sustainable society. In 2016, our net sales were EUR 1.7 billion. Lemminkäinen Corporation’s share is quoted on Nasdaq Helsinki Ltd. www.lemminkainen.com