Siemens 2013 Annual Report Download - page 187

253 D. Consolidated Financial Statements
357 E. Additional Information
245 C. Compensation Report, Corporate Governance
statement pursuant to Section a of the
German Commercial Code, Takeover-relevant
information and explanatory report
246 C. Siemens AG ( Discussion on basis of
German Commercial Code)
250 C. Notes and forward-looking statements

Profit and Profit margin by Business
Profit Profit margin
Year ended September , Year ended September ,
(in millions of €)   % Change  
Industry Automation 1,038 1,316 (21)% 12.7% 15.6%
Drive Technologies 527 970 (46)% 5.7% 10.1%
Profit at Industry Automation declined substantially year-
over year, due in part to € million in charges for “Siemens
.” Continuing softness in the Division’s short-cycle mar-
kets led to lower revenue year-over-year and reduced capacity
utilization. The Division took measures to improve its busi-
ness mix via a ramp-down of certain low-margin activities, in-
cluding the solar inverter business. In contrast, the Division’s
industrial IT and software business contributed revenue and
order growth year-over-year, due in part to recent acquisitions
including LMS. Revenue for the Division overall came in %
below the prior year, on declines in the Americas and Europe,
C.I.S., Africa, Middle East. The Division’s moderate decline in
orders year-over-year was evident in all three reporting re-
gions, led by a clear decrease in the Americas.
In addition, the Division took PPA effects related to long-lived
assets of LMS, which totaled € million for the year. Effects
from deferred revenue adjustments and inventory step-ups re-
lated to LMS totaled an additional € million. Both fiscal years
under review included PPA effects from the acquisition of UGS
Corp., acquired in fiscal . These effects were € million
in fiscal  and € million a year earlier.
Profit at Drive Technologies in fiscal  came in at € mil-
lion, a sharp decline from the prior-year level. The main impact
was € million in charges for “Siemens .” Profit develop-
ment also included a revenue-driven decline due to challeng-
ing market conditions for the Division’s higher-margin
short-cycle businesses and its offerings for renewable energy.
On a geographic basis, both orders and revenue declined mod-
erately on lower volume in all three reporting regions, particu-
larly including Asia, Australia which showed a clear decline
year-over-year.
C... INFRASTRUCTURE & CITIES
Sector
Year ended September , % Change therein
(in millions of €)   Actual Adjusted Currency Portfolio
Profit 306 1,102 (72)%
Profit margin 1.7% 6.3%
Orders 21,894 17,150 28% 28% (3)% 2%
Total revenue 17,879 17,585 2% 1% (1)% 2%
External revenue 17,128 16,731 2%
therein:
Europe, C.I.S.,  Africa, Middle East 10,482 10,121 4%
therein Germany 2,633 2,880 (9)%
Americas 4,283 4,344 (1)%
Asia, Australia 2,363 2,267 4%
1 Excluding currency translation and portfolio effects. 2 Commonwealth of Independent States.
Profit at Infrastructure & Cities came in at € million in fis-
cal , down from €. billion a year earlier. The biggest
factor in this decline year-over-year was € million in
“Siemens ” charges, taken primarily to improve the Sec-
tor’s cost efficiency and regional footprint. These charges led
to declines in profit at Power Grid Solutions & Products and
Building Technologies, which otherwise showed strong profit
performances. Transportation & Logistics took the largest part
of the Sector’s “Siemens ” charges. Furthermore, its profit
was impacted by project charges of € million related to
high-speed trains. In the prior fiscal year, charges related to
these matters were sharply lower at € million. Transaction