Siemens 2008 Annual Report Download - page 163

Management’s discussion and analysis 67
Energy posted Sector prot of €1.434 billion, a 21% decline compared to €1.818 billion a year earlier. Four of the
Sector’s ve Divisions delivered rapid growth in prot and prot margin compared to the prior year, including
Power Transmission, Oil & Gas, Renewable Energy and Power Distribution. In contrast, Fossil Power Generation
posted a loss of €89 million in scal 2008 following a prot of €792 million a year earlier.
Orders and revenue grew on a Division-wide basis, with orders climbing 17% to €33.428 billion and revenue ris-
ing 11% to €22.577 billion. These increases in turn pushed the Sector’s book-to-bill ratio above the high level of
scal 2007. On a regional basis, the Europe/C.I.S./Africa and Americas regions turned in double-digit increases
in both orders and revenue. The Asia/Australia/Middle East region posted a 4% increase in revenue, while slower
demand in China and India contributed to a 6% decline in orders for the year for this region.
Orders at Fossil Power Generation grew 11% year-over-year, to €12.993 billion, including major contract wins
in Germany, Austria, the UK and Russia. Revenue was up 1%, at €8.171 billion. After the Division’s turnkey solu-
tions business took charges at major projects in the second quarter, the Energy Sector adjusted the Division’s
target business mix with the aim of improving overall protability. In particular, this adjustment entailed bring-
ing the Division’s products business, services business and turnkey solutions business into balance with one
third of our volume coming from our turnkey solutions business and two thirds coming from our products and
service businesses.
Divisions New Orders
Year ended
September 30, % Change therein
(€ in millions) 2008 2007 Actual Adjusted* Currency Portfolio
Fossil Power Generation 12,993 11,721 11% 16% (5)% 0%
Renewable Energy 4,434 2,452 81% 102% (21)% 0%
Oil & Gas 5,630 4,734 19% 20% (3)% 2%
Power Transmission 7,290 6,658 9% 15% (6)% 0%
Power Distribution 3,578 3,327 8% 14% (6)% 0%
* Excluding currency translation and portfolio effects.
Divisions Revenue
Year ended
September 30, % Change therein
(€ in millions) 2008 2007 Actual Adjusted* Currency Portfolio
Fossil Power Generation 8,171 8,129 1% 6% (5)% 0%
Renewable Energy 2,092 1,365 53% 67% (14)% 0%
Oil & Gas 4,038 3,363 20% 22% (4)% 2%
Power Transmission 5,497 4,901 12% 17% (5)% 0%
Power Distribution 3,211 2,851 13% 18% (5)% 0%
* Excluding currency translation and portfolio effects.