Source: Bosch announcement
STUTTGART, Germany – Despite the challenging macroeconomic situation, Bosch, the supplier of technology and services, succeeded in increasing sales and result in the 2022 business year.
According to preliminary figures, the Bosch Group generated total sales of €88.4 billion. Sales thus increased some 12 percent over the previous year, or around 10 percent after adjusting for exchange-rate effects.
EBIT (earnings before interest and taxes) from operations reached €3.7 billion. The EBIT margin from operations is expected to be around 4 percent.
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“The difficult 2022 business year once again demonstrated that Bosch is crisis-proof while possessing tremendous innovative strength,” said Dr. Stefan Hartung, chairman of the board of management of Robert Bosch GmbH, at the presentation of the company’s preliminary business figures. “In an environment that remains challenging, we are securing our growth opportunities worldwide with targeted investments and expanding our international presence. We want to offer people around the world technology that is ‘Invented for life’ and thus make a meaningful contribution to society – from climate-friendly heating to energy saving and sustainable mobility.”
Recently, Bosch announced that some €950 million will be invested over 10 years in an engineering and manufacturing center in Suzhou, China. The center will create mobility solutions and products in the areas of electrification and automation which are specifically designed to serve local market demand. At the same time, Bosch is helping to boost Europe’s status as a high-tech location:
“A prime example is the expansion of our wafer fabs in Dresden and Reutlingen,” Hartung said. “In the years up to 2026, we plan to invest another €3 billion in our semiconductor business – also as a contribution to countering chip shortages in the mobility sector.”
Bosch also plans to focus more on expanding its business globally, in places including Egypt, India, Mexico, the United States, and Vietnam.
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For Bosch, the changes in the market and technology environment being ushered in by connectivity, automation, and electrification in particular, along with the growing importance of sustainability, will serve as growth drivers in the years ahead.
Additional demand in emerging regions such as the ASEAN countries will open up further market growth. Against this backdrop, Hartung believes that the company is well positioned with regard to the economic and energy policy situation.
However, the energy shortages driving inflation might negatively impact consumption, and thus monetary stability, over the long term. For this reason, he welcomed the introduction of a restrictive monetary policy by the central bank. At the same time, he warned against the formation of global economic blocs.
“A fragmentation of economic systems threatens innovative strength and prosperity for everyone,” Hartung said. “Most importantly, climate action needs international cooperation.”
Hartung sees the further development of renewables as a way of resolving the conflicting goals of environmental and economic sustainability.
“The transformation of energy systems needs to remain affordable, must not lead to power supply failures in businesses or households, and should leave fossil fuels behind wherever possible.”
Bosch is playing its part in this, he said, and upping the pace in fuel-cell and hydrogen technology.
“Where electromobility is concerned,” Hartung said, “we are registering a consistently high order intake.” As a result, Bosch expects to register sales of €6 billion in this segment by as early as 2026. In China, business with e-axles and motors is already forecast to turn a profit this year.
To view the entire announcement, click HERE.