Siemens 2006 Annual Report Download - page 114

Management’s discussion and analysis
110
Industrial Solutions and Services (I&S)
Beginning in fiscal 2006, I&S includes the Airport Logistics and Postal Automation divi-
sions, formerly of L&A, on a retroactive basis.
Group profit at I&S rose to €289 million, up 73% compared to the prior year, due primarily
to the metallurgy business included in the VA Tech acquisition in the fourth quarter of fiscal
2005. Profitability improved in part due to sales channel synergy associated with the acquisi-
tion. Sales for the fiscal year rose 40%, to €8.819 billion, including double-digit organic
growth, and orders were up 26%, at €9.025 billion. For comparison, the prior year included
a particularly large order in the fourth quarter.
Siemens Building Technologies (SBT)
In fiscal 2006, SBT continued to improve its profitability, posting a 29% increase in Group
profit to €234 million. The Group’s fire safety and security business contributed strongly to
the increase in Group profit. Sales for the year rose 9% compared to the prior year, to €4.796
billion, and orders climbed 16% to €5.235 billion. All the Group’s divisions contributed to busi-
ness growth, including greater penetration of their installed base and success in services.
Year ended September 30,
% Change
(€ in millions) 2006 2005 Actual Adjusted*
Group profit 289 167 73%
Group profit margin 3.3% 2.6%
Sales 8,819 6,307 40% 14%
New orders 9,025 7,189 26% (2)%
* Excluding currency translation effects of 2% on sales and orders, and portfolio effects of 24% and 26% on sales
and orders, respectively.
Year ended September 30,
% Change
(€ in millions) 2006 2005 Actual Adjusted*
Group profit 234 181 29%
Group profit margin 4.9% 4.1%
Sales 4,796 4,415 9% 7%
New orders 5,235 4,518 16% 13%
* Excluding currency translation effects of 1% and 2% on sales and orders, respectively, and portfolio effects
of 1% on sales and orders.