4. Segment Reporting

Since 1 October 2009, Demag Cranes AG has applied the new IFRS 8 Operating Segments. IFRS 8 follows the management approach. That is, external segment reporting reflects the internal reporting system. For the purpose of internal Group control, the Management Board uses operating EBIT, which does not include management adjustments such as the effects of business combinations, restructuring measures and severance awards. These management adjustments are not defined in accordance with IFRS and may differ from similar adjustments applied by other companies, and the presented figures may not be fully comparable between companies. The Unallocated line contains central holding company costs. The segment data are based on the accounting methods in accordance with IFRS.

Activities of the Reportable Segments

The first reportable segment, Industrial Cranes, integrates the development, production, sale, assembly and delivery of industrial cranes, including components and material handling solutions. Activities of the second reportable segment, Port Technology, consist of developing, manufacturing, selling, assembling, delivering and maintaining Mobile Harbour Cranes and automated container handling systems, including the provision of storage and integrated software solutions. The Services segment comprises Industrial Cranes field service activities such as inspection, maintenance, repairs and the refurbishment of used cranes, as well as the sale of spare parts.

Quarterly Performance Year-on-Year

Disclosures in Accordance with IFRS 8	Revenue		Operating depreciation, amortisation and impairments
in EUR thousand	Q3 2009/2010	Q3 2008/2009*	Q3 2009/2010	Q3 2008/2009*
Industrial Cranes	101,274	119,493	2,960	2,892
Port Technology	29,614	35,235	1,108	1,887
Services	74,211	65,837	399	572
Unallocated	–	–	692	113
Group	205,099	220,565	5,159	5,464

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Disclosures in Accordance with IFRS 8	Depreciation, amortisation and impairments		Operating earnings before interest and tax (EBIT)		Earnings before interest and tax (EBIT)
in EUR thousand	Q3 2009/2010	Q3 2008/2009*	Q3 2009/2010	Q3 2008/2009*	Q3 2009/2010	Q3 2008/2009*
Industrial Cranes	3,222	3,134	–1,573	2,996	–1,928	–10,786
Port Technology	1,226	9,664	–841	–7,490	–1,774	–31,371
Services	426	620	15,282	11,251	15,128	7,223
Unallocated	692	113	–2,850	–1,411	–3,102	–5,878
Group	5,567	13,530	10,018	5,346	8,325	–40,812
* Previous year’s figures restated.

in EUR thousand	Q3 2009/2010	Q3 2008/2009
Earnings before interest and tax (EBIT)	8,325	–40,812
Interest and similar income	664	785
Interest and similar expenses	–2,817	–3,372
Earnings before tax (EBT)	6,172	–43,400

Nine-Month Performance Year-on-Year

Disclosures in Accordance with IFRS 8	Revenue		Operating depreciation, amortisation and impairments
in EUR thousand	Q1– Q3 2009/2010	Q1– Q3 2008/2009*	Q1– Q3 2009/2010	Q1– Q3 2008/2009*
Industrial Cranes	315,965	420,534	8,524	8,748
Port Technology	113,806	146,084	3,419	5,717
Services	211,348	225,167	1,262	1,690
Unallocated	–	–	1,956	339
Group	641,120	791,785	15,161	16,495