Siemens 2009 Annual Report Download - page 159

71
 Managing Board statements, Independent auditors’ report, Additional information
95 Net assets position 97 Report on post-balance sheet date events
98 Risk report
108 Information required pursuant to
§315 (4) HGB of the German Commercial
Code and explanatory report
114 Compensation report
114 Report on expected developments
SEGMENT INFORMATION ANALYSIS
Sectors
Industry
Industry faced severe challenges from the worldwide eco-
nomic downturn in fiscal 2009, including significant slow-
downs in major markets such as factory automation, machine-
building, automotive, construction, and various process in-
dustries. Shorter-cycle manufacturing-related markets were
the first to show demand declines from the recession, with
corresponding adverse affects for the Industry Automation,
Drive Technologies and OSRAM Divisions. By the end of fiscal
2009, the recession’s effects began to reach Industry ’s longer-
cycle businesses as well, with the exception of Mobility. The
Sector’s order backlog had a stabilizing effect, yet revenue for
Industry overall was 7% lower year over-year. Orders declined
21% on reduced customer demand at all Divisions particularly
including Drive Technologies, Industry Solutions and Industry
Automation. On a geographic basis, both orders and revenue
declined in all regions, with the sharpest drops coming in the
Sector’s largest region, Europe, C.I.S., Africa, Middle East. In-
dustry ’s order backlog was €27.8 billion at the end of fiscal
2009, down from €31.7 billion a year earlier. Out of the current
backlog, orders of €13 billion are expected to be converted into
revenue during fiscal 2010, orders of €6 billion during 2011,
and the remainder in the periods thereafter.
Falling revenue and corresponding adverse effects on capacity
utilization and revenue mix took Industry ’s profit down by a
third compared to fiscal 2008. Mobility was the only Division
that improved profit and profitability year-over-year. Industry
initiated cost-cutting programs, capacity adjustment mea-
sures and structural initiatives aimed at restoring profitable
growth. In the fourth quarter of fiscal 2009, these efforts en-
tailed €173 million in net charges for severance and an addi-
tional €40 million at OSRAM for major impairments and inven-
tory write-downs. In the prior year, gains from the sale of busi-
nesses partially offset project related charges at Mobility as
well as structural initiatives at OSRAM and Mobility.
B25T008_E
Sector
Year ended September , % Change therein
(in millions of €)   Actual Adjusted
Currency Portfolio
Profit 2,701 3,947 (32)%
Profit margin 7.7% 10.5%
New orders 33,284 42,374 (21)% (22)% 1% 0%
Total revenue 35,043 37,653 (7)% (8)% 1% 0%
External revenue 33,915 36,526 (7)%
Therein:
Europe, C.I.S.2, Africa, Middle East 19,243 21,301 (10)%
Therein Germany 6,636 7,434 (11)%
Americas 8,323 8,763 (5)%
Asia, Australia 6,349 6,462 (2)%
1 Excluding currency translation and portfolio effects. 2 Commonwealth of Independent States.