Siemens 2008 Annual Report Download - page 162

66 Management’s discussion and analysis
Drive Technologies contributed €1.193 billion to Sector prot, a 31% increase compared to €913 million in s-
cal 2007. The Division’s protability beneted from high capacity utilization and economies of scale. Both peri-
ods included PPA effects from the scal 2005 acquisition of Flender Holding GmbH. These effects were the same,
at €38 million in scal 2008 and in the prior year. Fiscal 2007 also included integration costs of €7 million.
Prot at Building Technologies rose to €466 million, a 9% increase compared to €429 million in scal 2007,
which had beneted from a gain on the sale of a business in Germany. Both prot and prot margin in the cur-
rent period showed the positive inuence of a favorable business mix.
OSRAM saw its prot decline 18% year-over-year, to €401 million. Protability was negatively inuenced as its
two largest businesses, general and automotive lighting were exposed to a challenging market environment at
the end of scal 2008. Lower capacity utilization and an unfavorable revenue mix contributed to the Division’s
prot decline year-over-year. Charges related to OSRAM’s structural initiatives in the fourth quarter, including
severance charges and impairments were offset by a €130 million net gain on the sale of the Division’s Global
Tungsten & Powders unit. OSRAM expects adverse market conditions to continue in scal 2009, particularly in
the consumer and automotive markets.
Industry Solutions raised its prot to €439 million, a 41% increase compared to scal 2007. The metals technol-
ogies and industrial technologies businesses drove the Division’s prot and margin growth, which beneted
also from a €30 million gain on the sale of the Division’s hydrocarbon service business.
Mobility posted a loss of €230 million in scal 2008, compared to a prot of €274 million in the prior year. The
result in the current year included charges of €209 million taken in the second-quarter related to major projects,
as well as provisions related primarily to software challenges with projects in the rail automation business and
further charges of €32 million for the Combino railcar business. Mobility initiated its “Mobility in Motion” trans-
formation program in the second half of the scal year to realign its organization and improve its cost structure.
The program resulted in costs of €151 million in the fourth quarter, primarily for severance charges and impair-
ments. Fiscal 2007 included a net gain of €76 million on the sale of Mobility’s locomotive leasing business.
Energy
Sector
Year ended
September 30, % Change therein
(€ in millions) 2008 2007 Actual Adjusted* Currency Portfolio
Prot 1,434 1,818 (21)%
Prot margin 6.4% 9.0%
New orders 33,428 28,543 17% 23% (6)% 0%
Total revenue 22,577 20,309 11% 16% (5)% 0%
External revenue 22,191 19,875 12%
Therein:
Europe, C.I.S.**, Africa 9,526 8,243 16%
Therein Germany 1,890 1,876 1%
Americas 5,643 4,885 16%
Asia, Australia, Middle East 7,022 6,747 4%
* Excluding currency translation and portfolio effects. ** Commonwealth of Independent States.