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Bosch North America

Bosch Sales Increase 5 Percent In North America

FARMINGTON HILLS, Mich. — In 2006, the Bosch Group increased its North American sales by 5 percent, reaching $8.8 billion. All three of the company’s business sectors – Automotive Technology, Industrial Technology, and Consumer Goods and Building Technology – contributed to the result.

Increased sales however could not surmount the impact of key market factors (i.e. rising raw materials and fuel costs, production cuts among key automakers and a slowdown in construction) on capacity utilization and productivity.

“2006 proved to be a mixed year for Bosch in North America,” said Peter Marks, chairman, president and CEO, Robert Bosch LLC and member of the Board of Management, Robert Bosch GmbH. “Challenges within the U.S. manufacturing sector and particularly within the automotive industry have impacted the company's return. Yet, we have expanded our activities in security systems and heating systems by means of acquisitions. In the future, we remain committed to investing in innovation and are focused on securing long-term profitable growth.”

Automotive Technology
Bosch’s North American Automotive Technology sector saw a sales increase over five percent to $5.8 billion in 2006. Automotive Technology, inclusive of original equipment and aftermarket activities, is Bosch’s largest business sector with more than 14,200 associates in North America. The intensifying need for fuel economy and environmental solutions propel the potential for growth in "clean diesel" and gasoline direct injection technologies. Electronic stability control (ESC) will double the installation rate in the U.S. from 36 percent in 2006 to 72 percent in 2010. In the same period, Bosch intends to triple its annual sales of ESC in the U.S. to approximately three million units per year.

Industrial Technology
The Industrial Technology sector registered flat sales of $1.2 billion in 2006. With 3,100 associates, Bosch continues to make a strong commitment in this sector ranging from its industrial hydraulics and electric drives to packaging equipment used in the pharmaceutical, food and confectionery industries. A leading supplier for wind energy turbines, Bosch Rexroth anticipates demand for renewable power generation systems to rise, and is also developing drives and gearboxes for sea power systems. Bosch Rexroth has established its Technical Center West near San Francisco, Calif. as a global center of competence, expanding its application engineering expertise to the semiconductor production and medical technology industries.

Consumer Goods and Building Technology
The Consumer Goods and Building Technology business sector achieved growth of six percent over 2005, resulting in 2006 revenues totaling $1.8 billion. In North America, the Consumer Goods and Building Technology sector employs more than 6,600 associates and produces a range of products including power tools, security systems, home appliances and thermo-technology. Bosch has been awarded with the 2007 Excellence in ENERGY STAR Promotion Award by the U.S. Environmental Protection Agency and Department of Energy. Bosch is the only manufacturer to have ENERGY STAR qualification on all its appliance products rated by the program. In August 2006, Bosch expanded its communications systems offerings through the acquisition of Telex Communications, a leading manufacturer and supplier of professional audio, wireless, life safety and communication systems. In January 2007, Bosch acquired FHP Manufacturing Company, a leading U.S. manufacturer of electrical heat pumps to strengthen the company's position in the growing renewable energy field.

Committed to a vigorous investment in innovation, the Bosch Group invested 5.2 billion USD, or 7.6 percent of its sales, in research and development worldwide. With approximately 26,000 associates working in research and development, Bosch's patent applications rose 9 percent in 2006 to 3,056 patents. The company further cements its presence in the region as 2006 capital expenditures in North America exceeded $400 million.

The Bosch Group is a leading global manufacturer of automotive and industrial technology, consumer goods, and building technology. In fiscal 2006, some 260,000 associates generated sales of 43.7 billion euros. Set up in Stuttgart in 1886 by Robert Bosch (1861-1942) as “Workshop for Precision Mechanics and Electrical Engineering,” the Bosch Group today comprises a manufacturing, sales, and after-sales service network of more than 280 subsidiaries and some 13,000 Bosch Service Centers in over 140 countries.

In North America, the Bosch Group manufactures and markets automotive original equipment and aftermarket products, industrial automation and mobile products, power tools and accessories, security technology, thermo-technology, packaging equipment and household appliances. Bosch employs more than 24,000 associates in more than 80 primary and 20 associated facilities throughout the region with reported sales of $8.8 billion in 2006. For more information on the company, visit www.bosch.us.

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N.A. Earnings - May 2007

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