Siemens 2010 Annual Report Download - page 149

113 Report on post-balance sheet date events
114 Report on expected developments and associated
material opportunities and risks
128 Information required pursuant to § () and
§ () HGB and explanatory report
133 Information required pursuant to § () and
§ () no.  HGB and explanatory report
135 Compensation and declaration pursuant to §a HGB
135 Additional information for supplemental
financial measures
138 Siemens AG (Discussion on basis of HGB)
147 Consolidated Financial Statements
261 Additional information

Revenue related to external customers declined % in fiscal
, including a double-digit drop at Siemens IT Solutions and
Services. Sales in all Sectors benefited from positive currency
translation effects. Revenue in Industry came in just below the
prior-year level, including lower sales at Industry Solutions and
Drive Technologies. In contrast, revenue at OSRAM rose by
double digits year-over-year. Within a % decline in Energy, a
double-digit increase in revenue at Renewable Energy nearly
offset declines in other Divisions. Healthcare revenue came in
% above the prior-year level, including growth at all Divisions
and a steady revenue increase throughout the year. Below the
Sectors, lower revenue at Siemens IT Solutions and Services
and portfolio streamlining activities at Centrally managed
portfolio activities were major drivers of the overall revenue
decline for Siemens.
Revenue from emerging markets rose %, to €. billion,
accounting for % of Siemens’ overall revenue in fiscal ,
compared to % in fiscal .
On a geographic basis, growth in Asia, Australia was more
than offset by declines in other regions. In Europe, C.I.S.,
Africa, Middle East, revenue decreased % year-over-year due
primarily to lower sales in the Industry Sector and at Siemens
IT Solutions and Services. Revenue in Industry decreased % in
the region, as double-digit declines at Drive Technologies and
Industry Solutions more than offset strong growth at OSRAM.
Revenue for Energy and Healthcare came in near the level of
the prior fiscal year. In Germany, a double-digit revenue in-
crease in Energy was nearly offset by a revenue decline at
Siemens IT Solutions and Services. In the Americas , revenue
fell % year-over-year, as lower sales in the U.S. were largely
offset by double-digit growth in the region’s emerging mar-
kets. Among the Sectors, revenue in the Americas slightly de-
creased in Industry and came in level with the prior year in
Energy and Healthcare. Benefiting from positive currency
translation effects, revenue rose % in Asia, Australia in fiscal
 on double-digit growth in Industry and Healthcare. Rev-
enue came in higher at five of the Industry Sector’s six Divi-
sions, and all Healthcare Divisions reported double-digit reve-
nue increases year-over-year. The Energy Sector recorded a
revenue decline in the region. Higher revenue in India included
double-digit increases in all Sectors.
Consolidated Statements of Income
Year ended September , % Change
(in millions of €)  
Gross profit 21,647 20,710 5%
as percentage of revenue 28.5% 27.0%
Gross profit for fiscal  came in % above the prior year on
higher gross profit margins in all Sectors. Even though Indus-
try and Energy recorded revenues slightly below the prior-year
level, both Sectors reported higher gross profits. The increase
in Industry included higher capacity utilization at OSRAM, and
to a lesser extent at Industry Automation, as well as higher
gross profit at Mobility. These factors more than offset a sig-
nificant gross profit decline at Industry Solutions, which took
€ million in charges related to current cost estimates for a
project engagement with a local partner in the U.S., and also
saw a significant drop in revenue year-over-year. Gross profit in
the Energy Sector rose on a more favorable revenue mix and
strong project performance, particularly at Fossil Power Gen-
eration. The gross profit increase in the Healthcare Sector was
due in part to higher revenues and included improved gross
profits and margins in all Divisions. In addition to a favorable
product mix at Imaging & IT, Healthcare benefited from positive
effects related to currency developments and from comparison
with the prior-year period, which included an unfavorable cur-
rency hedge and was burdened by higher charges related to
particle therapy contracts at Workflow & Solutions. These
charges were € million in the current year and € million
a year earlier. Gross profit in all three Sectors benefited from
their respective portions of a previously disclosed pension
curtailment gain in the second quarter of fiscal . Further,
gross profit was negatively influenced by charges for staff re-
duction measures related to a strategic reorientation of
Siemens IT Solutions and Services, the majority of which were
recorded as Cost of goods sold and services rendered. In addi-
tion, gross profit in fiscal  included € million of the
expenses related to the special remuneration for non-manage-
ment employees. The above factors, together with savings re-
lated to our supply chain management efforts, resulted in a
gross profit margin of .% for Siemens overall, up from .%
in fiscal .