Bosch kick-starts 2015 with growing sales in all sectors

REFLECTING a good start for the year, global supplier of technology and services Bosch Group reported a 13% jump in sales for the first quarter of 2015. The growth amounted to 5.4% after adjusting for exchange-rate effects. 

 

Bosch said it  expects sales to grow 3% to 5% for the current fiscal year after exchange-rate effect adjustments. Nominal sales growth is forecast to be higher than this range. 

 

Dr. Volkmar Denner (left), chairman of the Bosch board of management, presented the annual financial statements in Gerlingen, Germany, where he noted Internet-enabled products and Internet-based services as one of the focal points for future sales growth. 

 

“Our economic and technological strength in our established fields of business allows us to open up new market segments. We are driving connectivity forward in all our business sectors and playing an active role in shaping it,” he added. 

 

2014 marked the launch of many Bosch new products and connectivity solutions. These include Web-enabled ovens and software solutions for connected heating systems and buildings, and connected industry and connected mobility. 

 

These product innovations helped Bosch to further improve its market position in many areas last year. During the past business year, the company increased its sales to €49 billion, a nominal 6.3% jump representing 7.4% after exchange-rate effect adjustments. The temporarily strong euro had a considerable impact on the sales figure due to the negative exchange-rate effects amounting to €500 million. 

 

Strong sales development contributed to improved result. Earnings before interest and taxes (EBIT) rose to €3 billion in 2014, a YoY growth of about 10%. Bosch disclosed an EBIT margin of 6.2% in 2014, roughly one percentage point better than the 2013 value adjusted for one-off and extraordinary effects. 

 

According to Dr. Stefan Asenkerschbaumer, chief financial officer and deputy chairman of the board of management, “Our rigorous work on costs also played a part in this significant improvement in result. In 2014, we were successful despite only moderate global economic growth.” 

 

The company has strengthened its position in the area of smart homes following the complete takeover of BSH Bosch und Siemens Hausgeräte GmbH, now BSH Hausgeräte GmbH. It is adding automated driving to its portfolio with the acquisition of ZF Lenksysteme GmbH, now Robert Bosch Automotive Steering GmbH. 

 

Strong business sectors, regional sales

 

 

In terms of business sectors, the Mobility Solutions posted growth twice as fast as the automotive market. Sales hit €33.3 billion, an increase of 8.9%, or 9.9% after adjusting for exchange-rate effects. EBIT totalled €2.4 billion, with a 7.2% EBIT margin. The sector posted a YoY operating result improvement of about 0.9 percentage points without one-off and consolidation effects.

 

The Consumer Goods business remained a market leader in power tools. Sales climbed 5% to €4.2 billion, or 7% after adjusting for exchange-rate effects. EBIT for 2014 reached €550 million for an EBIT margin of 13.1%. The EBIT included the pro rata after-tax profit of the BSH Bosch und Siemens Hausgeräte GmbH joint venture. 

 

In 2014, the Energy and Building Technology business sector reached €4.6 billion in sales, an increase of 1.7%, or 2.6% after adjusting for exchange-rate effects. EBIT came to some €170 million and the EBIT margin hit 3.7%. 

 

The Industrial Technology business sector generated €6.7 billion in sales, a nominal 2% below the previous-year level or 1% after adjusting for exchange-rate effects. A weak market and divestment of the sector's pneumatics business in early 2014 led to the slight drop. Sales rose by 2.5%, 3.6% after adjusting for exchange-rate effects, excluding the consolidation effect. The sector’s EBIT amounted to €67 million. 

 

 

In terms of regions, the Asia-Pacific was the number one growth region for Bosch in 2014. The company expanded sales in the area 17%, or 19% after adjusting for exchange-rate effects, last year to reach €13 billion. The region's share of sales reached a new high at just under 27% of total sales revenue. Sales growth was especially strong in China, rising a nominal 27% to €6.4 billion. 

 

Sales in North America increased by 8.6% to €8.5 billion. This is equivalent to a 9.3% growth after exchange rate adjustment. In South America, a weak Brazilian real and slowing automotive production resulted in a nominal sales drop of 13%. At €1.5 billion, sales were down by an exchange rate-adjusted 4.4% on the previous year.  

 

In Europe, Bosch succeeded in boosting sales by 2.1% to €26 billion despite persisting difficult economic situations. Adjusted for exchange-rate effects, growth was 2.5%. 

 

Europe accounted for 53% of total sales. Business in Germany was up YoY at €10.8 billion.