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Japan-Update

Nippon Sheet Glass faces one-time profit hit from US tax cut

Write-down on deferred tax assets drives $61m swing in forecast

TOKYO -- Nippon Sheet Glass on Wednesday slashed its net profit forecast for the fiscal year ending in March by 7 billion yen ($61.7 million), as the recently passed U.S. corporate tax cut forces it to write down deferred tax assets.

The Japanese glassmaker had expected net profit to rise 43% from fiscal 2016 to 8 billion yen, but now sees an 82% drop to 1 billion yen. The American tax overhaul cuts the corporate tax rate from 35% to 21% in 2018, lowering the value of deferred tax assets previously estimated using a higher rate.

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