Siemens 2011 Annual Report Download - page 193

153 D. Consolidated Financial Statements
273 E. Additional information
143 C.2 Additional information for supplemental
financial measures
145 C. Siemens AG (Discussion on basis of
German Commercial Code)
151 C. Notes and forward-looking statements
140 C. Information required pursuant to Section  ()
and Section  () no.  of the German Commer-
cial Code (HGB) and explanatory report
142 C. Compensation report and Corporate Governance
statement pursuant to Section a of the German
Commercial Code (HGB)

farm market. Renewable Energy ’s wind power business deliv-
ered a solid operating performance in fiscal  while increas-
ing its spending for R&D, marketing and selling associated
with growth. The wind power business also saw continuing
pricing pressure as the market matures and grows more com-
petitive, most notably for onshore projects. Profit development
for the Division was held back by negative impacts in its solar
business, including continued operating losses throughout
fiscal . In the fourth quarter, Siemens completed an as-
sessment of the growth prospects and long-term market de-
velopment for the concentrated solar power business. Follow-
ing completion of the impairment test, the solar business took
impairment charges totaling € million, including € mil-
lion for goodwill. For additional information, see D. Notes to
Consolidated Financial Statements. In total, these factors led
to a loss of € million for Renewable Energy in the current fis-
cal year, compared to a profit of € million a year earlier.
Profit at Oil & Gas rose % in fiscal , to € million, in-
cluding a strong performance in its turbines business. The Di-
vision’s % increase in revenue year-over-year was driven by
strong growth in emerging markets, particularly in China and
India, where revenue more than doubled. Orders at Oil & Gas
climbed % compared to the prior year on broad-based
growth across its businesses.
Profit at Power Transmission was € million in fiscal ,
down from € million a year earlier. Profit in fiscal  was
held back by the conversion of lower-margin contracts from
the backlog due to ongoing pricing pressure. This effect was
strongest in the transformers and high-voltage substation
businesses, which have attracted new market entrants based
in lower-cost countries. In addition, the current year included
charges totaling € million, including for staff reduction
measures, related to optimizing the Division’s global manu-
facturing footprint. Further, profit development year-over-
year was impacted by negative effects related to commodity
hedging. Orders at Power Transmission rose % year-over-
year, led by strong demand at the Division’s solutions busi-
ness. Revenue came in % higher compared to the prior fiscal
year, led by growth in the Europe, C.I.S., Africa, Middle East
region.
Power Distribution contributed € million in profit in fiscal
, down substantially from the prior fiscal year. Profit in
the current period was held back by higher expenses year-
over-year for R&D, marketing and selling associated with busi-
ness expansion and new technologies such as smart grids.
Order intake and revenue at Power Distribution rose % and
%, respectively, on growth in the regions Americas and Asia,
Australia.