Siemens 2008 Annual Report Download - page 165

Management’s discussion and analysis 69
Healthcare
Healthcare posted Sector prot of €1.225 billion in scal 2008, compared to €1.323 billion a year earlier. The
primary factors in the decline year-over-year were €174 million in transformation costs associated primarily
with refocusing of certain business activities in the Imaging & IT and the Workow & Solutions Divisions and
reducing costs. This reduced Sector prot margin for the scal year by approximately 150 basis points. Prot-
ability in both years under review was also negatively inuenced by PPA effects and integration costs related to
three major acquisitions at the Sector’s Diagnostics Division, one each in scal 2006, scal 2007 and scal 2008.
These factors took approximately 310 basis points from Sector prot margin in scal 2008. PPA effects and inte-
gration costs had a lesser impact in the prior year, reducing protability by approximately 180 basis points, and
were also partially offset by a divestment gain of €23 million from the sale of a portion of Healthcare’s stake in
a joint venture, Draeger Medical AG & Co. KG.
Orders and revenue at Healthcare rose 15% and 13%, respectively, compared to the prior year. These increases
include substantial new volume from the acquisition of Dade Behring in the rst quarter of scal 2008. On an
organic basis, orders rose 4% and revenue increased 2%.
Sector
Year ended
September 30, % Change therein
(€ in millions) 2008 2007 Actual Adjusted* Currency Portfolio
Prot 1,225 1,323 (7)%
Prot margin 11.0% 13.4%
New orders 11,779 10,271 15% 4% (7)% 18%
Total revenue 11,170 9,851 13% 2% (7)% 18%
External revenue 11,116 9,798 13%
Therein:
Europe, C.I.S.**, Africa 4,351 3,596 21%
Therein Germany 980 875 12%
Americas 4,861 4,578 6%
Asia, Australia, Middle East 1,904 1,624 17%
* Excluding currency translation and portfolio effects. ** Commonwealth of Independent States.
Divisions New Orders
Year ended
September 30, % Change therein
(€ in millions) 2008 2007 Actual Adjusted* Currency Portfolio
Imaging & IT 7,243 7,439 (3)% 3% (6)% 0%
Workow & Solutions 1,653 1,522 9% 14% (5)% 0%
Diagnostics 3,195 1,553 106% 3% (13)% 116%
* Excluding currency translation and portfolio effects.
Divisions Revenue
Year ended
September 30, % Change therein
(€ in millions) 2008 2007 Actual Adjusted* Currency Portfolio
Imaging & IT 6,811 7,066 (4)% 2% (6)% 0%
Workow & Solutions 1,490 1,494 0% 5% (5)% 0%
Diagnostics 3,185 1,553 105% 3% (13)% 115%
* Excluding currency translation and portfolio effects.