Seeking Alpha
Profile| Send Message|
( followers)  
On Wal-Mart's (NYSE:WMT) Fiscal 2Q conference call, executives discuss resulting losses and gains in the sale of German and South Korean stores:

Lee Scott- President and CEO

During the quarter, we announced the sale of our operations both in South Korea and in Germany. These changes allow us to continue to focus our efforts where we can have the greatest impact on Wal-Mart’s growth and our ROI strategy...


... we announced the sale of our operations in South Korea and Germany during the second quarter. Both transactions are subject to local anti-trust review, and will close after regulatory approvals. In our income statement, we have reflected the results of operations of South Korea and Germany as discontinued, both in the current and prior periods. Additionally, the assets and liabilities of the entities operations are reflected as assets and liabilities of discontinued operations in our balance sheet, or assets held for sale.

The sale of our business in South Korea is expected to generate a gain. The gain will be recorded in the period when we close the sale. The sale of our business in Germany, on the other hand, will generate a loss. You will remember that in the press release announcing the sale of Germany, we estimated the loss to be approximately $1 billion. In this quarter, we actually recorded an $863 million charge related to the sale of Germany.

In the event there are additional charges associated with this divestiture, they will be reported in future quarters through discontinued operations. The second quarter net loss from operations of these two businesses was $38 million. Since South Korea and Germany are now considered discontinued operations, results of the international segment’s operations will exclude these two countries from the current and prior periods. This will allow for better apples-to-apples comparisons.


  • Latest Conference Call Transcripts from Seeking Alpha
  • Why We Publish Transcripts of Earnings Conference Calls
  • Source: Wal Mart Comments on Sale of South Korean and German Stores