Bosch sales surpass 70 billion euros for the first time

The company succeeded in increasing revenue by approximately 10 per cent last year. Earnings also further improved. Including extraordinary effects, earnings before interest and taxes (EBIT) rose to around five billion euros.

Adjusted for extraordinary effects, earnings totaled roughly 4.5 billion euros. EBIT margin from operations was approximately 6.5 per cent, which is higher than the previous year when calculated on a comparable basis.

Equity ratio remains sound and liquidity remains high despite the billions spent on the acquisitions of BSH Hausgeräte GmbH and Robert Bosch Automotive Steering GmbH.

“Thanks to our innovative strength, we were able to successfully continue our growth trend in a challenging business environment and a number of stagnating markets in 2015. A major driver of this positive business development was an increasing number of solutions for the connected world,” said Dr. Volkmar Denner, chairman of the board of management of Robert Bosch GmbH.

Bosch is shaping the digital transformation

In particular, connectivity over the internet of things is currently transforming Bosch’s business, in some cases at a fundamental level. Bosch is the only company worldwide that is active on all three levels of the internet of things.

Bosch Group offers key technologies that enable connectivity such as sensors and software, and is also developing new services on this basis.

“With our expertise in sensors, software, and services, we’re shaping the connected world and opening up new business opportunities. The ‘digital transformation’ is anything but a threat to us. Instead, we see it as an enormous opportunity,” Denner continued.

Just a few weeks ago, for example, the company announced its entry into the smart-home market. At CES in Las Vegas, Bosch presented its smart-home system to the public for the first time.

Business performance in 2015 by business sector

Sales developments in 2015 varied across the four business sectors. As Dr. Stefan Asenkerschbaumer, CFO and deputy chairman of the board of management, explained, “In 2015, we further improved our market position and competitiveness in many areas, and gained market share.”

Despite only anemic growth in global vehicle production, the Mobility Solutions business sector succeeded in significantly increasing sales, according to preliminary figures. Overall, sales grew by 12 per cent to 41.7 billion euros in 2015. Among Bosch’s most successful products last year were gasoline and diesel injection systems, driver assistance systems, and infotainment systems.

The Consumer Goods business sector also recorded very robust growth. Here, Bosch was able to increase its sales by 9.3 per cent year on year to 17.2 billion euros. This sector’s best-selling products included cordless power tools and household appliances such as a connected range of stoves.

The Energy and Building Technology business sector recorded growth of 11 per cent, which was considerably higher than the previous year. The sector generated sales of 5.1 billion euros. This success can be primarily attributed to services, security systems for large infrastructure projects, and connected smart-heating solutions.

The Industrial Technology business sector continues to be affected by weakness in the global mechanical engineering segment. Sales fell by 1.7 per cent year on year to 6.6 billion euros. The Drive and Control Technology division suffered further collapses in important segments of the mechanical engineering market in 2015.

2016 – cautiously optimistic outlook

For 2016, Bosch is forecasting only moderate growth of 2.8 per cent for the global economy.

“We also have to prepare ourselves for stronger fluctuations in our markets, both regionally as well as in specific industries,” Asenkerschbaumer said.

Geopolitically, the situation in 2016 will remain complex and characterised by considerable uncertainty. Regardless of this, Bosch wants to continue its growth trend in the current year and to grow faster than its various markets. Despite enormous investments to secure the company’s long-term viability, result and EBIT from operations are to be further improved.