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28th December 2017, Helsinki

US tax reform boosts profits at Suominen

Nonwovens producer Suominen is set to profit from an extensive tax reform in the United States in 2017 - the federal corporate tax rate will decrease from 35% to 21% as of 1 January 2018.

Suominen Group has net deferred tax liabilities of approximately EUR 10 million in the US and thanks to the decrease in the corporate tax rate, the company’s net deferred tax liabilities are expected to decrease by approximately EUR 4 million. Suominen Group has net deferred tax liabilities of approximately EUR 10 million in the US and thanks to the decrease in the corporate tax rate, the company’s net deferred tax liabilities are expected to decrease by approximately EUR 4 million.

This non-recurring item will improve Suominen’s profit for 2017 as it will be recognized in the 2017 financial statements in income taxes decreasing Suominen’s total income taxes for the financial year. This will have no cash flow impact, a statement from the company said.

Suominen continues to analyse the other impacts of the US tax reform, such as the impact of the accelerated tax depreciation of new investments on 2017 income taxes. The company anticipates that also for this part, the tax reform will have a positive impact on the company.

Suominen operates three nonwovens plants in the US. In 2016, some 51% of the consolidated net sales was generated in the US. The company manufactures nonwovens as roll goods for wipes as well as for medical and hygiene products.

The end products made of Suominen’s nonwovens are wet wipes, feminine care products and swabs. It is the global market leader in nonwovens for wipes and employs more than 650 people in Europe and in the Americas. Suominen’s net sales in 2016 amounted to EUR 416.9 million and comparable operating profit to EUR 25.6 million.

www.suominen.fi

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