BHP takes $1.8 billion hit from US tax reform
Mining giant BHP (ASX, NYSE:BHP) (LON:BLT) is taking a $1.8 billion hit from the major US tax reform package supported by President Donald Trump and passed by the Senate in December
The Anglo-Australian miner said the charge, which will be treated as an exceptional item, consists mainly of a non-cash charge on deferred taxes of $898 million and another charge on foreign tax credits of $834 million.
The world’s biggest miner believes the tax reform will have a positive impact on profits in the long-term.
However, the world’s biggest mining company said the reform — which will cut the corporate income tax rate from 35% to 21% in the US and change international tax provisions — would have a “positive impact” on profits in the long-term.
Other companies, including BP and Deutsche Bank, have also posted initial losses from the US tax reform, but they too have said it will benefit them in the long term.
BHP, which has recently come under fresh pressure from activist investor Elliott Advisors, is expected to report first-half results next week.