Auto component major Bosch Group witnessed 2.7 percent growth in sales in 2013 to 46.4 billion Euros, despite the difficult economic environment (adjusted previous-year figure: Euro 45.2 billion), according to preliminary figures. The strong Euro places a considerable burden on the sales revenue in the form of negative exchange-rate effects to the tune of some Euro 1.5 billion. Earnings have developed fundamentally better, but are once again affected by the situation of the solar energy division, which remained difficult in 2013. In early 2013, the company announced its decision to exit its activities in crystalline photovoltaics.
According to the company’s press release, its EBIT margin comes to some six percent. This is roughly one percentage point more than in the previous year. Including the extraordinary burden as a result of photovoltaics, which are likely to total Euro 1.3 billion, EBIT margin is about three percent. “The many measures taken to improve profitability are clearly working. In fact, we have made better progress with result than expected,” said Volkmar Denner, chairman of the board of management of Robert Bosch GmbH.
Asia Pacific sales grew by five percent. In North America, growth was more than three percent. At roughly minus three percent in nominal terms, sales developed negatively in South America. Nominal sales in Europe grew slightly by two percent. In 2014, global GDP is expected to grow by 2.8 percent. Against this background, the Bosch Group expects sales to grow slightly in 2014, with its earnings situation continuing to improve.
The Automotive Technology business with gasoline direct injection and diesel injection systems grew significantly in 2013. In Industrial Technology, the packaging machinery business was able to record good growth. By contrast, the global weakness of the mechanical engineering sector caused a considerable slump in the Drive and Control Technology division. In Consumer Goods, Bosch was once again successful with power tools, both for professional and DIY users. Developments in the Energy and Building Technology business sector were overshadowed by the difficult situation in the Solar Energy division. The Security Systems division grew strongly while the Thermotechnology division was successful with energy efficient condensing appliances.
Bosch is also working intensively on the mobility of the future, which will be electric, automated, and connected. In 2013, Bosch launched many products and services related to these trends. They include highly efficient gasoline and diesel injection systems, driver assistance systems such as motorcycle stability control, infotainment systems such as mySPIN, telematics services for the management of vehicle fleets, and robotics applications such as the “Indego” lawnmower. (END)
