Siemens 2012 Annual Report Download - page 164

1 A. To our Shareholders
21 B. Corporate Governance 49 C. Combined Management Report
50 C. Business and economic environment
64 C. Financial performance measures
69 C. Results of operations
82 C. Financial position
93 C. Net assets position
95 C. Overall assessment of the economic position
96 C. Subsequent events
97 C. Sustainability
111 C. Report on expected developments and
associated material opportunities and risks

ect in Finland, amounting to € million in the current year
and € million a year ago. Revenue rose % year-over-year,
with substantial growth in Asia, Australia and significant
growth in the Americas more than offsetting a moderate de-
cline in Europe, C.I.S., Africa, Middle East. Due to a lower vol-
ume from major orders, fiscal  orders came in % lower
than a year earlier, including a substantial decline in Europe,
C.I.S., Africa, Middle East.
Profit at Wind Power was lower year-over-year. Positive contri-
butions from substantially higher revenue were offset by high-
er expenses for research and development, marketing and sell-
ing associated with expansion, a less favorable revenue mix,
and increased pricing pressure. In addition, earnings came in
lower due to a € million provision related to a wind turbine
component from an external supplier and a charge of € mil-
lion related to capacity adjustment. Revenue rose % year-
over-year, due to conversion of large orders into current busi-
ness mainly in Europe, C.I.S., Africa, Middle East, and, to a less-
er degree, in the Americas and Asia, Australia. Revenue growth
was supported clearly by positive currency translation effects.
New orders were down % due primarily to a lower volume
from large offshore orders in Germany. New order intake in the
U.S. was down compared to fiscal . With the expected
near-term expiration of tax incentives in the U.S., orders in
that country nearly ceased towards the end of fiscal . Giv-
en market developments in the U.S., Wind Power announced
plans to reduce its production capacity. Challenging market
conditions at Wind Power, including pricing pressure, are ex-
pected to continue in coming quarters.
Profit at Oil & Gas declined sharply year-over-year from the
prior year due primarily to € million in earnings impacts
stemming from the change in credit risk assessment for Iran
mentioned above. In other respects, Oil & Gas performed well,
including a higher earnings contribution from its services
business as well as from its turbines business. Revenue in-
creased clearly due primarily to growth in Asia, Australia. Or-
ders decreased substantially in Asia, Australia, taking orders
lower for the Division overall.
Power Transmission reported a loss of € million for fiscal
, compared to profit of € million for fiscal . The
major factor was € million in project charges related pri-
marily to technically complex grid connections to offshore
wind-farms in Germany. These charges were due to project
delays resulting from a complex regulatory environment and
the projects’ complex marine environment, which required
revised estimates of resources and personnel. In addition,
profit was impacted by charges totaling € million to address
structural issues in the transformers business. Earnings were
also held back by a less favorable revenue mix, due in part to
low-margin orders booked during prior periods with signifi-
cant pricing pressure. These factors were only partly offset by
the release of a provision of € million related to a successful
project completion. For comparison, prior-year period profit
included charges of € million, including for staff reduction
measures, associated with optimizing the Division’s global
manufacturing footprint. Order intake decreased % com-
pared to the prior year, which included a higher volume from
large orders and a sharp drop in orders in the solutions busi-
ness due in part to more selective order intake. All three
reporting regions saw lower orders. The Division expects con-
tinuing challenges, including the technically complex grid-
connection projects mentioned above and structural issues in
certain businesses.
... 

Year ended September , % Change therein
(in millions of €)   Actual Adjusted  Currency Portfolio
Profit 1,815 , %
Profit margin 13.3% .%
New orders 13,806 , % % % %
Total revenue 13,642 , % % % %
External revenue 13,600 , %
therein:
Europe, C.I.S., Africa, Middle East 4,593 , %
therein Germany 1,056  %
Americas 5,692 , %
Asia, Australia 3,315 , %
1 Excluding currency translation and portfolio effects. 2 Commonwealth of Independent States.