Wärtsilä Corporation Interim Report q3 2014

        

Discontinued operations
In July, Wärtsilä and China State Shipbuilding Corporation (CSSC) signed an agreement to establish a joint venture, which will take over Wärtsilä's two-stroke engine business. CSSC will own 70% of the business and Wärtsilä’s ownership will be 30%. The closing of the transaction is subject to the required regulatory approvals, which are expected in the first quarter of 2015. The financial impact of the reorganisation is dependent on the timing of the closing of the transactions and certain related mechanisms. The financial effect on Wärtsilä's continuing operations is positive.
As of the third quarter of 2014, the two-stroke business is classified as discontinued operations, including the transfer of non-current assets held for sale and liabilities directly attributable to them on separate rows in the condensed statement of financial position. The comparison figures in the condensed statement of income and the items related to it have been restated to show the discontinued operations separately from continuing operations.
As a result of the two-stroke joint venture with CSSC, Wärtsilä divested its shares in the Qingdao Qiyao Wärtsilä MHI Linshan Marine Diesel Co. Ltd in August. The selling loss of the shares was EUR 10 million and it is included in the expenses from discontinued operations.
Loss for the reporting period from the discontinued operations
MEUR 1–9/2014 1–9/2013 2013
Discontinued operations
Net sales 47 40 48
Losses on sale of shares -10
Expenses -71 -67 -85
Operating result -34 -27 -37
Income taxes 5 4 6
Loss for the reporting period -29 -23 -31
Earnings per share, discontinued operations, EUR -0.15 -0.11 -0.16
Discontinued operations, items on statement of financial position
MEUR 30.9.2014
Intangible assets and property, plant and equipment 69
Inventories 5
Other receivables 27
Pension obligations -18
Other liabilities -33
Net assets 50

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