Siemens 2010 Annual Report Download - page 152

6 To our shareholders 21 Corporate Governance 49 Combined management’s discussion and analysis
50 Business and operating environment
78 Fiscal  – Financial summary
81 Results of operations
98 Financial position
110 Net assets position
113 Overall assessment of the economic position

Net income for Siemens in fiscal  was €. billion com-
pared to €. billion a year earlier. Net income attributable to
shareholders of Siemens AG was €. billion, up from €.
billion in fiscal .
SEGMENT INFORMATION ANALYSIS
Sectors
Industry
Revenue in Industry came in level year-over-year. While the
recovery in shorter-cycle business mentioned above helped lift
revenues for OSRAM and Industry Automation, market condi-
tions for the Sector’s longer-cycle businesses showed signs of
stabilization later in the fiscal year. On a regional basis, double-
digit growth in Asia, Australia offset lower revenue in Europe,
C.I.S., Africa, Middle East. Orders rose % compared to the
prior fiscal year on increases at all Divisions except Mobility,
which saw lower volume from major orders. The improvement
was due to higher demand in the Americas, as orders in other
regions came in almost level with the prior year. Industry ’s
order backlog was € billion at the end of fiscal , un-
changed from a year earlier. Out of the current backlog, orders
of € billion are expected to be converted into revenue during
fiscal , orders of € billion during fiscal , and the re-
mainder in the periods thereafter.
The Industry Sector increased its profit % year-over-year, to
€. billion, as successful profitability initiatives resulted in
improved capacity utilization and cost management. These
factors were particularly evident in the Sector’s shorter-cycle
businesses, which began recovering from the downturn in the
first half of the fiscal year. All Divisions except Industry Solu-
tions produced higher profit year-over-year, with the strongest
increases coming at OSRAM and Industry Automation. A num-
ber of factors burdened Sector profit in both periods. The cur-
rent period includes € million in charges for staff reduction
measures, € million in charges related to current cost esti-
mates for a project engagement with a local partner in the U.S.,
and a provision for a supplier-related warranty. These factors
were only partly offset by € million in gains related to curtail-
ment of pension plans in the U.S., which benefited results at
all Divisions, and a € million net gain at Mobility on the sale
of its airfield lighting business. Profit in fiscal  was held
back by € million in charges for staff reduction measures in
the fourth quarter and by charges of € million at OSRAM for
major impairments and inventory write-downs.
Sector
Year ended September , % Change therein
(in millions of €)   Actual Adjusted  Currency Portfolio
Profit 3,478 2,701 29%
Profit margin 10.0% 7.7%
New orders 34,908 33,284 5% 3% 2% (1)%
Total revenue 34,869 35,043 0% (2)% 2% (1)%
External revenue 33,728 33,915 (1)%
therein:
Europe, C.I.S., Africa, Middle East 18,127 19,243 (6)%
therein Germany 6,652 6,636 0%
Americas 8,215 8,323 (1)%
Asia, Australia 7,386 6,349 16%
1 Excluding currency translation and portfolio effects. 2 Commonwealth of Independent States