Specialty chemicals company Lanxess AG (LXS.XE) said on Wednesday that as a result of the U.S. tax reform it will book a one-off charge in the fourth quarter, though it says the reform will have a positive impact on cashflow and earnings in the long term.

The company estimates that as a result of the mandatory repatriation tax, it will have a one-time exceptional charge of about 50 million euros ($59.4 million) on its fourth quarter reported net income and earnings per share.

The charge won’t have an impact on earnings per share pre-exceptionals, Lanxess said, and is cash neutral for fiscal 2017.

However, in the coming years the overall effect from the tax reform is expected to be positive due to the reduction in the corporate income tax rate for its U.S. businesses, said Lanxess, which now expects its tax assumption to be at the lower end of its previous 30% to 35% tax rate guidance.

https://www.marketwatch.com/story/lanxess-to-book-one-time-charge-for-us-tax-reform-2017-12-28