Bosch sales surpass 70 billion euros, driven by Mobility Solutions

Germany-based Bosch Group has recorded sales of over 70 billion euros (Rs 535,080 crore) for the first time, according to preliminary figures. The company’s revenue has increased approximately 10 percent compared to the previous year.

Further, earnings before interest and taxes (EBIT) rose to around 5 billion euros (Rs 38,220 crore). Adjusted for extraordinary effects, earnings totaled roughly 4.5 billion euros (Rs 34,398 crore). The EBIT margin went up 6.5 percent, which is higher than the previous year when calculated on a comparable basis.

Commenting on the record sales, Dr Volkmar Denner, chairman of the board of management of Robert Bosch GmbH, said, “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.”

Digital transformation is the primary driver

Bosch said that its focus on connectivity over the internet of things is currently transforming the company’s business. Bosch is the only company worldwide that is active on all three levels of the internet of things. The 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,” explained Denner.

Mobility Solutions sales up 12%

Despite an insipid growth in global vehicle production, Bosch’s Mobility Solutions business sector succeeded in significantly increasing sales, according to preliminary figures. Overall, sales grew by 12 percent to 41.7 billion euros (Rs 318,755 crore) in 2015. Among Bosch’s most successful products last year were gasoline and diesel injection systems, driver assistance systems, and infotainment systems.

North America's sales post sharp increase

Bosch recorded a particularly sharp sales increase in North America. There, the technology and services company’s revenues grew by a significant 24 percent to 12.6 billion euros. The company’s business in Europe was considerably stronger than in 2014, with sales up 4.2 percent to 37.5 billion euros. In Asia Pacific, the Group recorded sales growth of 16 percent to 19.1 billion euros.

Tapping new segments

Bosch sees great potential in the two-wheeler and commercial-vehicle segments; for which the company recently established dedicated units in order to better serve market and customer needs.

“In the commercial vehicle segment, automation will play an increasingly important role in reducing accidents. Injection systems for two-wheelers – as opposed to the carburetor systems common today – reduce fuel consumption and thus make an important contribution toward resource conservation, particularly in developing countries,” said the company statement. 

Greenhouse-gas reduction – impossible without diesel engines

In this context, Denner emphasized the importance of diesel technology for meeting global warming targets.

“It is only with diesel, for example, that the EU’s ambitious CO₂ targets can be reached.” Diesel vehicles emit significantly less CO₂ than comparable gasoline vehicles. “In the debate about air quality and particulate matter in our cities as well, diesel is not part of the problem, but part of the solution,” Denner said. Thanks to modern filter technology, he went on, a diesel vehicle can even purge particulate matter from the ambient air in large cities. “The diesel is an air-cleaning machine.” Denner repeated his conviction that the diesel powertrain can become even better. Bosch has the technology, he said, to bring diesel nitrogen oxide emissions to an extremely low level, even in real driving conditions. “It is our development goal to get diesel vehicles complying with current standards not only at the test bench, but also on the roads,” he went on. Denner also spoke out in favor of regular checks of production vehicles by independent testing institutes.