What the new tax law does, and doesn’t mean for companies

Exeter Corp., the company that makes the popular Exeter watch, is being forced to write down its profits in an effort to avoid a new tax bill that could be as high as $250 billion.

The news comes on the heels of the Justice Department and Congress approving a sweeping overhaul of the tax code that eliminates the tax deductibility of interest, dividends and capital gains, as well as the $10,000 cap on the total amount of tax-deductible interest and dividends that can be paid on any one investment.

The Treasury Department is already projecting that the tax law could raise more than $1 trillion over the next decade.

Exeter is also expected to face significant changes to its accounting practices and other policies that could make it more difficult to manage its money.

Expect more stories on tax reform.

Read moreRead or return to top Exeter, a unit of UBS AG, has reported $6.6 billion in profits for the first half of 2018, up from $5.8 billion a year ago.

The company said that its stock price rose 1.3% in after-hours trading, but that profit was offset by a decline in revenues, which was driven by a drop in net income.

The decline was partially offset by higher net interest income. 

 Exeter has been hit hard by the tax overhaul, with its revenue forecast for 2019 down nearly 25%.

Exeter shares are down more than 70% since the end of 2016, according to data from FactSet.

The financial services company also saw a drop of more than 40% in its share price since the beginning of 2018. 

The company said it had $2.3 billion in cash on hand as of Dec. 31.

Exercising debt Exeter’s debt is also facing significant challenges.

The U.S. Treasury has said that Exeter could owe $1.9 billion in interest payments on $4.6 million of debt.

That means Exeter has $3.3 million in debt and about $1 million in equity, according the Treasury Department. 

That means Exetech, a financial services startup founded by former Google executives, owes about $2 billion in debt. 

Exercising equity Exeter and Exeter are also facing a significant increase in their equity value.

Exetebase, the company Exeter bought in 2018 for $1 billion, had about $5 million in cash and stock at the end for a total value of about $15 million, according an analysis by analysts at Wedbush Securities.

Exetter also has a majority stake in a company called the Exeter Financial Services Group, which Exeter says it has purchased from another company. 

Other companies that are expected to be hit by the new law include a group of energy companies called Energex Corp., which is based in Houston, and a maker of industrial equipment called GSI Technologies Inc. A spokesperson for Exeter declined to comment on its earnings report.

Exerse reported $1,917.6 in revenue for the fourth quarter, up 6.9% from the same period last year, with net income of $2,828.3, up 20.5% from a year earlier. 

Read moreExeter stock rose nearly 11% to $4,096.70.

Exeqe has also said that it expects its fourth-quarter earnings per share to rise, with revenue of $1 per share. 

Another energy company, the Exeqetec Group, was also hit hard in 2018, when it reported revenue of about the same as it did a year before, up about 11%. 

Exeqetes financials show that revenue in 2019 was about the size of the revenue in the second quarter of 2017.

The Exeqeter financials also show that the company was hit hard with an increase in debt payments, as was Exeqemec. 

There is no official word yet on whether Exeqebase’s shares will be sold, or whether the company will continue to use its stock. 

Companies are expected continue to seek tax cuts under the law that President Donald Trump signed into law, according a senior Treasury official. 

Congress has also approved $2 trillion in new spending to address a slew of other pressing issues, including the opioid crisis and the fight against global pandemics, according Rep. Jim Costa (D-Calif.), a member of the House Ways and Means Committee. 

At a press conference Friday, Costa called for a “full repeal of this tax law, including all the loopholes, and to do it quickly and to a large degree in a bipartisan manner.”

Category: Team