Fiscal year 2021: Bosch Group sales growth exceeded expectations

2022-05-05 0 By

Stuttgart, Germany — The Bosch Group posted stronger-than-expected sales growth in 2021.According to preliminary results [1], Bosch group sales increased by 10% to 78.8 billion euros.After adjusting for currency effects, technology and service sales rose 11 percent.Group earnings before interest and tax rose more than 50 per cent to €3.2bn.The eBIT margin was about 4%, up from 2.8% in 2020.”The Bosch Group’s performance in 2021 exceeded expectations,” said Dr. Stefan Hartung, Chairman of the Bosch Group board.”Despite a number of challenges, such as cost pressures from supply bottlenecks and higher prices of raw materials, the group’s performance was better than expected.”As Dr. Hartung said, “I would like to thank all Bosch employees for their hard work and our customers, suppliers and business partners for their trust.”He added that he hopes to work with Bosch’s global team to continue to explore innovative technologies and meet the current challenges with “technology makes life beautiful”.”Bosch is a technology leader in so many areas and we want to stay that way.”To this end, Bosch continues to invest heavily in core strategic areas, and this year alone, Bosch will invest around 1 billion euros in microelectronics and electric vehicles.At the same time, Bosch is putting more emphasis on cooperation, such as the recent announcement that it will work with Volkswagen to develop autonomous driving technology.The chairman of the Board of Bosch group expects that the efforts of various countries in promoting climate and economic development will significantly boost the business growth in the future.”Climate action continues to drive Bosch’s business, including mobility solutions, industrial automation, building technology and home appliances,” Dr Hartung said.”Thanks to connectivity and ARTIFICIAL intelligence, energy efficiency will be further improved.”As a result, Bosch’s sales of smart connected power tools, home appliances and heating systems increased by 50% in 2021, to more than 6 million units from 4 million in 2020.The Bosch Group is committed to achieving the goal of a “Green Deal for Europe”.Bosch has implemented a series of measures to combat global warming across its business segments: since the first quarter of 2020, Bosch has become carbon neutral in more than 400 locations around the world.Between now and 2030, Bosch aims to reduce carbon emissions across its supply chain, from sourcing to product use, by 15 per cent.Electrification is bringing us more and more business, says the chairman of the Bosch Group.”Bosch is generating billions of euros in sales from electric products.Bosch home heat pumps are seeing double digit growth and electric drives are finding their way into industrial technology, “said Dr Hartong.He believes the company is in a strong position: “Bosch is turning climate action into business growth.”He also said Bosch was demonstrating how to balance ecological and economic interests in its transition to climate and to the economy.Sustainable Mobility — Automotive and Industrial Technology Growth Bosch is also further tapping into the growth potential of electric vehicles.Bosch has been producing silicon carbide (SiC) power semiconductors since late 2021.Such power semiconductors could increase the range of electric vehicles by 6 percent.The silicon carbide market is forecast to grow by an average of 30% annually over the next three years to exceed $2.5 billion, according to Yole, a market research consultancy.Dr. Robert Habeck, Germany’s Federal Minister for Economic and Climate Action, recently visited Bosch’s production site in Bambeck to learn about plans for large-scale production of stationary fuel cells (solid oxide fuel cells, or SOFC).With its superior SOFC technology, Bosch is playing an important role in the transition to renewable energy, while also opening up new business opportunities.By 2024, Bosch plans to invest more than 400 million euros in SOFC technology, in addition to 600 million euros in automotive fuel cell technology.Bosch also has a battery production plant equipment business.The potential is huge: Bosch thinks the global battery market is growing at 25% a year.Bosch is collaborating with The Volkswagen Group on research aimed at bringing the battery manufacturing process to mass production.Dr Hartung said: “It is Bosch’s common goal with VW to enable European suppliers to achieve large-scale production of low-cost battery technology and to become a technology leader in this field.”Experts see Bosch’s partnership with Volkswagen as a key step towards climate neutrality and mobility and sustainable battery production.Software-defined Mobility — Double digit Growth in a huge market Bosch plans to further expand its business and position in automotive software development.Each year, The Bosch Automotive and Intelligent Transportation Technology business unit equips more than 200 million Bosch software control units for vehicles worldwide.Bosch expects the automotive software market to be worth about €200bn by 2030.”Bosch is targeting double-digit growth in this market,” said Dr. Markus Heyn, new Chairman of the Bosch Group’s Automotive and Intelligent transportation Technology business group and a member of the Bosch Board of Directors.”This is an area where Bosch will benefit from the evolution of vehicles to network nodes.”According to Dr Heyn, Bosch has developed a strategic approach to this.The standalone automotive applications business will be integrated into Bosch subsidiary ETAS by mid-2022.ETAS will provide basic automotive software, middleware, cloud services, and common development tools.In addition, the new Bosch Intelligent Driving and Control business unit will create car-specific applications with special hardware for driver assistance, autonomous driving and other functions.In this area, Bosch has entered into a full partnership with Cariad, the software company of the Volkswagen Group, at the end of January 2022.”Collaboration will accelerate the process of partial and highly autonomous driving of passenger vehicles,” said Dr Heyn.”We want to set standards for the market that carmakers can benefit from.”As an employer, Bosch also wants to contribute to the climate and the economy.”The transformation of many industries has given Bosch the opportunity to re-examine the employment situation,” said Filiz Albrecht, board member and chief Human resources officer of the Bosch Group.To help people transition to new jobs, it is increasingly important for employers to offer “new job prospects that go beyond the organization itself.”Therefore, in Germany, Bosch contributes a wealth of experience to “Allianz der Chancen”.Allianz der Chancen is a cross-sector employment transformation initiative.”Bosch believes in the company’s ability to transform employment in a way that is as socially acceptable as possible,” Albrecht said.To that end, Bosch is also looking at new ways to place and qualify employees.In addition, Bosch has continued to invest in helping employees upgrade their skills: more than 1 billion in the past five years.The hybrid collaboration model is another part of Bosch’s drive for change in employment.”Through the ‘Flexible Work’ initiative, Bosch is systematically creating a flexible combination of telecommuting and working in the company.The team can work flexibly with the supervisor when and where they want to work, “Albrecht said.Being able to decide when and where to work is especially important for software developers, and Bosch is in great demand for such professionals.”Currently, Bosch’s Intelligent Driving and Control division in Germany alone needs to recruit more than 1,000 software specialists,” Albrecht added.Bosch Group sales increased in 2021 and surpassed pre-pandemic 2019 levels.”The Bosch Group is once again benefiting from its extensive diversification across industries and regions,” said Dr. Markus Forschner, Board member and Chief Financial Officer of the Bosch Group.”Despite the impact of global supply bottlenecks, Bosch reported sales growth across all business segments.”The automotive and Intelligent transportation technology business, the largest and largest by sales, reported significant growth in the fourth quarter despite the impact of market conditions.Despite the huge impact of the chip shortage on the auto industry, sales in the segment rose 7.5 percent to 45.4 billion euros, or 7.9 percent after adjusting for currency effects.Sales in the industrial technology business reached 6.1 billion euros, helped by a recovery in the mechanical engineering market.Nominal growth and adjusted for exchange rate effects both reached 20 per cent.As the CFO said, this means that Bosch Group sales have returned to pre-pandemic levels.Sales in the consumer goods business were well ahead of the previous year at €21bn, up 13 per cent or 15 per cent after adjusting for currency effects, driven by strong demand for home and garden products.Sales in the energy and building technology business rose 11 percent to 5.9 billion euros, or 12 percent after adjusting for currency effects.”The performance has actually surpassed pre-pandemic levels, helped by strong demand for climate-friendly heating technologies,” said Dr Forschner.”Regionally, the Bosch Group also saw an overall increase in sales,” Dr. Forschner said.Sales in Europe rose 9.3 per cent year-on-year to €41.5 billion, or 10 per cent after adjusting for currency effects.Sales in North America rose 6.5 percent to 11.5 billion euros, or 10 percent after adjusting for currency effects.Sales in South America climbed 32 percent to 1.4 billion euros, up 41 percent after adjusting for currency effects.”This is a significant step forward, especially since the region was hit hard by the COVID-19 pandemic last year.”Dr Forschner explains.Sales in Asia Pacific rose 12 per cent to €24.4 billion, or 11 per cent after adjusting for currency effects.Despite challenges posed by COVID-19 and chip supply shortages, Bosch’s sales in China hit a record high thanks to the rapid recovery in the automotive, industrial technology and consumer goods sectors.According to preliminary data, Bosch group’s sales in China in 2021 will be about 128 billion yuan (16.7 billion euros), up 9.1% from 2020.Looking ahead, Bosch is optimistic about the long-term sound development of the Chinese economy, and will continue to deepen the fundamental ground and invest in key strategic areas to continue to grow together with the Chinese market.Especially in new energy, smart mobility and other areas, The Chinese market has a first-mover advantage and leads the development of the industry. Bosch will work with partners to develop innovative technologies and products to meet the growing demand of the local market.As of December 31, 2021, Bosch Group had approximately 401,300 employees worldwide, with approximately 6,700 employees added primarily in Asia Pacific and Europe;The number of German employees held steady at around 131,400.Research and development headcount rose almost 4 per cent to 76,300.The number of software developers worldwide topped 38,000, an increase of about 4,000 from the previous year.Bosch expects the world economy to grow between 4% and 4.5% in 2022, compared with around 5.5% in 2021.While many countries have made great progress in vaccination, Bosch expects the coronavirus pandemic to remain a heavy burden on society and the economy in 2022.In addition, persistent supply bottlenecks and rising prices for raw materials, intermediate goods and transportation will also have a significant impact on the global economy, affecting many industries, particularly the automotive sector.Adding to the uncertainty is a sharp rise in inflation across many sectors and regions.Bosch expects sales to grow and eBIT to be at least flat in 2022, subject to a stable business environment.Despite the challenges ahead, Dr Forschner is confident: “The Bosch Group is on a sound financial footing to invest in important strategic areas and maintain its current momentum.”The Bosch Group remains focused on outperforming the market and delivering strong growth in important business areas and geographies.Edit: The commercial car world