DMPL says companies in the US with deferred tax assets have similar write-offs due to the reduction in income tax rates. However, this should be more than offset by the reduced tax rates in future years which will be "substantial".
SINGAPORE (Mar 8): Del Monte Pacific (DMPL) announced a 3Q18 loss of US$38.4 million ($50.5 million) due to one-off expenses, mainly due to a US$39.8 million write-off of deferred tax assets in the US, due to the change in US Federal income tax rate from 35% to 21%.
Without the overall one-off expenses, the group would have posted remained profitable with earnings of US$3.4 million ($4.5 million), down 70.6% from US$11.6 million a year ago on lower operating margin.
