In the last year, the results of the Bosch Group exceeded pre-crisis records and even surpassed its forecasts. For 2022, despite warning of several challenges that exist, the German giant expects to continue to increase its sales
The Bosch Group presented its 2021 results, announcing that the 78.8 billion euros obtained from sales in 2021 exceeded pre-crisis levels. Preliminary results indicate that total sales increased by 10% to €78.8 billion and EBIT (earnings before taxes and fees) rose to €3.2 billion. This means a margin of 4%, compared to 2.8% recorded in the previous year.
The chairman of the board of directors of Robert Bosch GmbH, Dr Stefan Hartung, announces that “in 2021 the business performed much better than expected”. During the presentation, the official reinforces that it was possible “to overcome the forecasts despite many challenges, such as rising costs due to supply constraints and increases in raw material prices.” And it recognizes that the success of the results is also due to “solidarity in times of social distance” and does not let the support of the group’s employees, customers, suppliers and business partners go unnoticed.
The Bosch Chairman of the Board adds that “climate action is driving our business forward – we are in a strong position.” Continuing to expand the offer and respond to current challenges is the current focus. And, in this field, the Bosch Group highlighted the developments obtained in the automotive sector, with Stefan Hartung stating that “Bosch is a technological pioneer in many areas and we want to keep it that way. To this end, the company continues to invest large sums in strategically important areas, including a total of around €1 billion in microelectronics and electromobility this year alone.” The focus on partnerships, with the example of synergies with the Volkswagen Group in the area of autonomous driving, was also another example of future developments presented by the German giant.
Mobility as a growth engine
Among the areas in focus, the company highlights Mobility dominated by software. Growing and expanding its position in the development of software for vehicles is one of the goals of the German group, with the expectation that the automotive software market will reach a volume of around 200 billion euros by 2030. The new president of the Solutions business sector from the Mobility Board of Robert Bosch GmbH, Dr. Markus Heyn, added that “Bosch will see double-digit growth in this market”.
The strategic direction is already defined and electrification emerges as the main focus, following the growing democratization of this technology and the contributions it offers to the environment. But Bosch says there are other areas to explore. An example of this are the collaborations with the subsidiary ETAS (a technology company that will ensure the development of software), the new division Cross-Domain Computing Solutions and also with Cariad (a subsidiary of Volkswagen’s software). Training is also a commitment by Bosch, which will invest one billion euros in this area.
“All sectors increased their sales”
The results released by the Bosch Group reveal that sales not only increased, but were also higher than those obtained in 2019, before the crisis felt in the sector. Despite the constraints felt at the level of global suppliers, “all business sectors increased their sales”, said Dr. Markus Forschner, member of the board of directors and financial director of Robert Bosch Gm (41.5 billion euros) . After adjusting for exchange rate effects, this is an increase of 10%. Growth was also recorded at the regional level, namely in North America (6.5% before EBIT and 10% after adjustment), in Asia-Pacific (12% before EBIT and 11% after adjustment) and in South America (32% before EBIT and 41% after.
Goal is to continue to increase sales in 2022
For 2022, Bosch expects the global economy to grow between 4% and 4.5%, against a record close to 5.5% in 2021. And the company points out several challenges that will be felt, still due to the Covid-19 pandemic. 19, to ongoing supply constraints and rising prices for raw materials, primary products and transportation. These continue to be identified as the main concerns for the growth of the Group, but also of the global automotive industry. Although concerns remain during this year, the Bosch Group hopes to be able to increase its sales and achieve an EBIT margin from operations that is at least at the same level as the data recorded in 2021.