Siemens 2008 Annual Report Download - page 161

Management’s discussion and analysis 65
The Industry Automation and Drive Technologies Divisions each achieved double-digit growth rates for orders
and revenue in scal 2008 compared to scal 2007. Orders at Building Technologies were at year-over-year
and revenue declined slightly, while orders and revenue at OSRAM decreased 1% compared to a year earlier.
Reported revenue for Building Technologies and OSRAM were inuenced by negative currency translation
effects related to their substantial presence in the U.S. market. Growth at OSRAM was held back also by adverse
market conditions, particularly in the consumer and automotive markets. Orders and revenue at Industry Solu-
tions increased 9% and 8%, respectively, with particularly strong demand for the Division’s metals technology
solutions. The Division increased its strength in this area with an acquisition during scal 2008, and also
expanded its water treatment business by acquiring a Singapore-based company with operations in the Asia/
Australia/Middle East region. Orders at Mobility increased 21% to €7.842 billion, including a €1.4 billion con-
tract for more than 300 trains from the Belgium state railway system. Revenue declined 5% to €5.841 billion,
in part due to lower billings at large projects in the Division’s turnkey systems business.
Prot at Industry Automation increased 46% year-over-year, to €1.606 billion. The Division’s protability bene-
ted from high capacity utilization and economies of scale. Both periods under review included purchase price
accounting (PPA) effects and integration costs related to acquisition of UGS Corp., acquired in the third quarter
of scal 2007. PPA effects of €145 million and integration costs of €17 million in the current period were more
than offset by a pre-tax net gain on Divisional level of €125 million on the sale of the Division’s wireless modules
business and a gain of €38 million from the sale of another business. A year earlier, PPA effects were €105 mil-
lion and integration costs were €16 million. At the end of scal 2008, Industry Automation acquired Innotec
GmbH of Germany to strengthen its software portfolio.
Divisions Revenue
Year ended
September 30, % Change therein
(€ in millions) 2008 2007 Actual Adjusted* Currency Portfolio
Industry Automation 8,699 7,545 15% 12% (3)% 6%
Drive Technologies 8,866 7,793 14% 17% (3)% 0%
Building Technologies 5,984 6,038 (1)% 3% (5)% 1%
OSRAM 4,624 4,690 (1)% 4% (5)% 0%
Industry Solutions 7,106 6,601 8% 11% (4)% 1%
Mobility 5,841 6,160 (5)% (2)% (3)% 0%
* Excluding currency translation and portfolio effects.
Divisions Profit Margin
Year ended
September 30,
Year ended
September 30,
(€ in millions) 2008 2007 % Change 2008 2007
Industry Automation 1,606 1,102 46% 18.5% 14.6%
Drive Technologies 1,193 913 31% 13.5% 11.7%
Building Technologies 466 429 9% 7.8% 7.1%
OSRAM 401 492 (18)% 8.7% 10.5%
Industry Solutions 439 312 41% 6.2% 4.7%
Mobility (230) 274 – (3.9)% 4.4%