Bosch records 6.3% increase in 2014 sales, APAC big growth driver

Global automotive technology and services supplier Bosch has revealed its numbers for 2014 which sees sales increase by a nominal 6.3 percent to 49 billion euros (Rs 374,556 crore). Earnings before interest and taxes (EBIT) rose to 3 billion euros last year – a year-on-year increase of around 10 percent.

In the first quarter of 2015, sales have risen by roughly 13 percent but after adjusting for exchange-rate effects, the increase is 5.4 percent. For the current fiscal year, the company expects its sales to grow 3 to 5 percent after adjusting for exchange-rate effects.

Presenting the annual financial statements in Gerlingen, Germany today, Dr. Volkmar Denner, the chairman of the Bosch board of management, said: “Our economic and technological strength in our established fields of business allows us to open up new market segments.” Internet-enabled products and internet-based services are one of the focal points of the company's future sales growth. “We are driving connectivity forward in all our business sectors and playing an active role in shaping it,” Denner added.
Bosch says automated driving is a significant area of growth for the company, which is successively launching new driver assistance systems. For example, 2015 will see the start of series production of remote-controlled parking, the traffic jam assist, and an assistance function for evasive maneuvers and turning against oncoming traffic.

In the Mobility Solutions business sector, more than 2,000 engineers are working to make the auto pilot for drivers a reality. Connectivity and electrification are also future growth areas and at present, Bosch says it has received 30 orders relating to electrical powertrains. Each year, Bosch invests nearly 400 million euros (Rs 3,057 crore) in electromobility, not least in further developing battery technology. “We were instrumental in the success story of the diesel. We want to do the same for the electrical powertrain,” Denner said.

Connectivity is also a focus area. “Connectivity makes completely new solutions possible for the multimodal traffic of the future. And in established areas as well, it will play a significant role in creating customer benefit and conserving resources,” Denner said. Last year, for example, Bosch debuted connected electronic engine management systems for two-wheelers. Riders can use their smartphones to read and evaluate vehicle data.

Bosch is the globally leading manufacturer of micromechanical sensors, more commonly known as MEMS sensors. This year, it will manufacture 1.6 billion such ‘sensory organs’, nearly 25 percent more than in the previous year. “For Bosch, software expertise is a key competence for the future,” Denner said. “Embedded software is already one of our strong points, and we are successively adding to this with IT software know-how.”

One central software platform for the internet of things is the Bosch IoT which orchestrates communication and data exchange between web-enabled objects such as factory machinery, heating systems, and security cameras. The Bosch IoT suite can also analyze and process the kind of big data generated in areas such as connected manufacturing.

According to Denner, the business potential of the Internet of Things lies above all in the services that can be derived from connectivity. In fact, with the European Parliament mandating the use of emergency call technology in all new cars from 2018, Bosch which offers telematics services such as eCall for 500,000 vehicles in 16 languages will benefit substantially.

Asia Pacific drives growth
In Asia Pacific, Bosch’s sales grew 17 percent in 2014, to 13 billion euros. At just under 27 percent of total sales revenue, the region's share of sales reached a new high. Sales growth was especially strong in China, rising a nominal 27 percent to 6.4 billion euros.

While business in North America grew 8.6 percent to 8.5 billion euros, in South America, weak automotive production and weakness of the Brazilian real had a negative effect on sales developments. At 1.5 billion euros, sales were down by 13 percent.

In Europe, sales rose by 2.1 percent to 26 billion euros, the region accounting for 53 percent of total sales. In Germany as well, sales were up year on year, at 10.8 billion euros.
The Mobility Solutions (automotive) business division sector posted a sales increase of 8.9 percent to 33.3 billion euros. The business sector's EBIT was 2.4 billion euros, and its EBIT margin 7.2 percent. Without one-off and consolidation effects, the year-on-year improvement in operating result is roughly 0.9 percentage points.