Siemens 2014 Annual Report Download - page 195

247 D. Consolidated Financial Statements
337 E. Additional Information
213 C. Overall assessment of the economic position
214 C. Subsequent events
215 C. Sustainability and citizenship
225 C. Report on expected developments and
associated material opportunities and risks
242 C. Compensation Report and legal disclosures
242 C. Siemens AG (Discussion on basis
of German Commercial Code)

Orders by Business
Year ended September , % Change therein
(in millions of €)   Actual Comparable  Currency Portfolio
Power Generation 15,478 16,366 (5)% 0% (4)% (2)%
Wind Power 7,748 6,593 18% 19% (2)% 0%
Power Transmission 5,586 5,700 (2)% 2% (4)% 0%
1 Excluding currency translation and portfolio effects.
Revenue by Business
Year ended September , % Change therein
(in millions of €)   Actual Comparable  Currency Portfolio
Power Generation 13,909 15,242 (9)% (4)% (3)% (2)%
Wind Power 5,500 5,174 6% 9% (3)% 0%
Power Transmission 5,310 6,167 (14)% (10)% (3)% 0%
1 Excluding currency translation and portfolio effects.
Profit and Profit margin by Business
Profit Profit margin
Year ended September , Year ended September ,
(in millions of €)   % Change  
Power Generation 2,186 2,126 3% 15.7% 13.9%
Wind Power (15) 306 n / a (0.3)% 5.9%
Power Transmission (636) (156) >(200)% (12.0)% (2.5)%
Profit at Power Generation in fiscal  increased moderately
year-over-year to € . billion, despite a  % revenue decline.
The current period benefited from a €  million gain on the sale
of the Division’s turbo fan business and a positive €  million
effect from a successful project completion in the turnkey busi-
ness. The Division continues to face challenges in an increas-
ingly competitive market for large gas turbines. For comparison,
profit development a year earlier was held back by €  million
in “Siemens ” charges and €  million in charges related to
compliance with sanctions on Iran. Revenue for the Division
decreased  % year-over-year on declines in all three reporting
regions, due in part to negative currency translation. Order in-
take was below the level of the prior year, including strong neg-
ative currency translation effects, as declines in the Americas
and Europe, C.I.S., Africa, Middle East were only partially offset
by an increase in Asia, Australia. On an organic basis, order
intake was on the same level as in the prior year.
Wind Power reported a loss of €  million in fiscal , com-
pared to a profit of €  million in fiscal . The Division
recorded charges of €  million for inspecting and replacing
main bearings in onshore wind turbines and for repairing
offshore and onshore wind blades. The revenue mix was
clearly less favorable year-over-year, due to a significantly lower
contribution from the higher-margin offshore business. In addi-
tion, the Division’s production costs were higher compared to
the prior year. For comparison, fiscal  profit was burdened
by €  million in charges related to inspecting and retrofitting
onshore turbine blades, but benefited from positive effects re-
lated to project completions and the settlement of a claim
related to an offshore wind-farm project. Revenue was up  % as
an increase in the onshore business, particularly in the Ameri-
cas, more than offset the above-mentioned decline in the off-
shore business. Order intake was up significantly year-over-
year as order intake in the Americas region grew sharply, driven
mainly by a recovery in the U.S., the Division’s largest national
market for onshore wind power, from a low basis of comparison
in the prior year that resulted from uncertainty about continu-
ation of production tax incentives.
Power Transmission reported a loss of €  million, substan-
tially wider than the loss a year earlier mainly due to project
execution challenges. In the current year, the Division took
charges totaling €  million related to two high voltage direct
current (HVDC) transmission line projects in Canada, resulting
from revised estimates for civil engineering and infrastructure
provided by suppliers as well as penalties for associated project
delays, among other factors. In addition, the Division took