Wärtsilä Corporation Financial statements bulletin 2014

        

Discontinued operations
In July, Wärtsilä and China State Shipbuilding Corporation (CSSC) signed an agreement to establish a joint venture to takeover Wärtsilä’s 2-stroke engine business. The Winterthur Gas & Diesel Ltd (WinGD) joint venture has received the required regulatory approvals and the transaction was finalised in January 2015. Wärtsilä’s ownership of WinGD is 30% and the value of the transaction is approximately EUR 46 million.

In August, Wärtsilä divested its shares in the joint venture Qingdao Qiyao Wärtsilä MHI Linshan Marine Diesel Co. Ltd. The joint venture company was established for manufacturing large, low-speed marine diesel engines. Wärtsilä’s shares in the joint venture were transferred to the majority shareholder, Qingdao Qiyao Linshan Power Development Co Ltd, a company fully owned by China Shipbuilding Industry Corporation. The transaction price was not significant. The selling loss of the shares was EUR 10 million and it is included in the expenses from discontinued operations.
As of the third quarter of 2014, the two-stroke business has been 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 statement of financial position. The comparison figures in the statement of income and the items related to it have been restated to show the discontinued operations separately from continuing operations. The financial impact of re-organising the two-stroke business is positive on Wärtsilä’s continuing operations.
Loss for the financial period from the discontinued operations
MEUR 2014 2013
Discontinued operations
Net sales 60 48
Expenses -95 -85
Total -35 -37
Losses on sale of shares -10
Operating result -44 -37
Income taxes 7 6
Loss for the financial period -37 -31
Earnings per share, discontinued operations, EUR -0.19 -0.16
Discontinued operations, items on statement of financial position
MEUR 31.12.2014
Intangible assets and property, plant and equipment 70
Inventories 3
Other receivables 29
Pension obligations -30
Other liabilities -25
Net assets 47
Cash flows from discontinued operations
MEUR 2014
Cash flow from operating activities -38
Cash flow from investing activities -16
Cash flow from financing activities 56
Change in cash and cash equivalents, increase (+) / decrease (-) 1

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