Siemens 2014 Annual Report Download - page 198

108 A. To our Shareholders 131 B. Corporate Governance 171 C. Combined Management Report
172 C. Business and economic environment
187 C. Financial performance system
193 C. Results of operations
205 C. Financial position
210 C. Net assets position

Profit and Profit margin by Business
Profit Profit margin
Year ended September , Year ended September ,
(in millions of €)   % Change  
Industry Automation 1,401 1,038 35% 16.8% 12.7%
Drive Technologies 843 527 60% 9.1% 5.7%
Profit at Industry Automation increased substantially year-
over year to € . billion on an improved business mix and
higher results in all businesses, up from € . billion in the
prior-year period which included €  million in “Siemens ”
charges. Profit development further included higher revenue
and lower acquisition-related effects. In particular, PPA effects
related to the acquisition of UGS Corp. in fiscal  were
€  million in the current period compared to €  million a
year earlier. In addition, the Division recorded PPA effects of
€  million related to LMS International NV (LMS), acquired in
the second quarter of fiscal . For comparison, PPA effects
related to LMS in the prior year were €  million, while de-
ferred revenue adjustments and inventory step-ups totaled
€  million.
Order and revenue development for the Division was driven
mainly by double-digit growth in Asia, Australia, led by China.
In addition, order growth of  % year-over-year included a mod-
erate increase in the Americas. Revenue came in  % above
the prior year and included a slight increase in Europe, C.I.S.,
Africa, Middle East. Reported revenue in the Americas showed
a slight decline due to unfavorable currency translation effects.
Profit at Drive Technologies in fiscal  increased to
€  million on contributions from most of its businesses.
Profit development included a higher share of revenue from
the Division’s higher-margin motion control business and an
improved cost position. For comparison, profit of €  million a
year earlier was burdened by €  million in “Siemens ”
charges. Due to unfavorable currency translation effects,
reported revenue was level year-over-year while orders grew
 % on a higher volume of large internal orders from Siemens’
rail business.
On a geographic basis, double-digit order growth in China drove
a moderate increase in Asia, Australia while orders in Europe,
C.I.S., Africa, Middle East came in slightly above their prior-year
level. Revenue was flat in these two reporting regions. Both
orders and revenue came in lower in the Americas, held back
by unfavorable currency translation effects.
C... INFRASTRUCTURE & CITIES
Sector
Year ended September , % Change therein
(in millions of €)   Actual Comparable  Currency Portfolio
Profit 1,487 291 >200%
Profit margin 7.9% 1.6%
Orders 21,001 21,894 (4)% (4)% (2)% 2%
Total revenue 18,934 17,879 6% 6% (3)% 3%
External revenue 18,291 17,149 7%
therein:
Europe, C.I.S., Africa, Middle East 11,560 10,494 10%
therein Germany 2,763 2,635 5%
Americas 4,075 4,288 (5)%
Asia, Australia 2,656 2,367 12%
1 Excluding currency translation and portfolio effects. 2 Commonwealth of Independent States.