|FARMINGTON HILLS, Mich., April 21, 2008 – The Bosch Group increased its sales in North America in 2007 by seven percent to $9.5 billion, with all three of the company’s business sectors – Automotive Technology, Industrial Technology, and Consumer Goods and Building Technology – contributing to the growth. Sales for the Bosch Group globally grew by roughly eight percent to exceed 46 billion EUR (over $63 billion), after adjusting for currency effects.|
“Overall, 2007 was a successful year for the Bosch Group,” said Peter Marks, chairman, president and CEO, Robert Bosch LLC and member of the Board of Management, Robert Bosch GmbH. “Despite economic circumstances in the U.S. and weakness in the automotive and housing sectors, Bosch was able to realize sales growth in North America over the previous year. Part of this growth was achieved externally. 2007 acquisitions, including Health Hero Network, which marked Bosch’s entry into the remote health monitoring arena, and our expansion of automotive components and remanufactured parts, in surveillance systems and in leveling-laser tools reflect Bosch’s continued commitment to further grow sales in the Americas region.”
Bosch’s North American Automotive Technology sector saw a sales increase of six percent to $6.2 billion in 2007. Automotive Technology, which includes original equipment and aftermarket activities, is Bosch’s largest business sector with almost 14,200 associates in North America. The company’s solutions for improving fuel efficiency and reducing emissions that impact the environment continue to receive greater acceptance, with sales of clean diesel and gasoline direct injection technologies expected to register strong growth in the U.S. in the coming years. Globally, Bosch expects to sell 12.5 million high-pressure diesel-injection systems and more than two million gasoline direct injection systems this year. As the installation of Electronic Stability Control (ESC) gains momentum in the U.S., Bosch plans to reach sales of three million ESC units per year.
Bosch remains focused on long-term profitability and growth, and continues to invest in innovation, as evidenced by the opening early 2007 of a new technical center in Plymouth Township, Mich. that houses research and development as well as engineering space for its automotive electronics, starter motors and generators, and electrical drives divisions.
Bosch’s brakes business in the Americas received a significant boost through the acquisition of Delphi Corporation’s brake components business in Saltillo, Mexico as well as a 75.3 percent stake in Australia-based Pacifica Group, a leading manufacturer of brake calipers, parking brakes and brake components. The acquisition of Holger Christiansen in Denmark bolstered Bosch’s leadership in remanufactured automotive parts for the aftermarket.
The Industrial Technology sector in North America registered a sales increase of four percent to $1.3 billion in 2007. Bosch has nearly 3,100 associates in this sector that develops and supplies a range of products including packaging equipment used in the pharmaceutical, food and confectionery industries, industrial hydraulics and electric drives, wind energy turbines and drives and gearboxes for sea power systems.
Consumer Goods and Building Technology
The Consumer Goods and Building Technology business sector registered North American growth of 13 percent over the previous year, with revenues in 2007 reaching $2.0 billion. The Consumer Goods and Building Technology sector employs almost 6,900 associates in North America who produce a range of products including power tools, security systems, home appliances and geothermal heat pumps. Bosch continues to be the only manufacturer to have ENERGY STAR qualification on all its appliance products rated by the program.
In early 2007, Bosch acquired FHP Manufacturing, a leading U.S. manufacturer of geothermal heat pumps, strengthening the company's position in the renewable energy field. Bosch also boosted its Security Systems division through the acquisition of Canada-based Extreme CCTV, a technology leader in active infrared illuminators, demanding environment cameras and license plate capture systems. Bosch also announced that it was purchasing RoboToolz Ltd., a leading manufacturer of innovative leveling-laser products, with four locations worldwide, including one in Mountain View, CA.
The Bosch Group is committed to maintaining and growing its investment in research and development. In 2007, the company invested 3.6 billion EUR ($5 billion USD), or about 8 percent of its sales, in R&D, and has a total of roughly 30,000 associates working in research and development activities worldwide. 2007 capital expenditures on a global basis totaled some 2.8 billion euros, or six percent of sales.
The Bosch Group is a leading global supplier of technology and services. In the areas of automotive and industrial technology, consumer goods, and building technology, some 272,000 associates generated sales of over 46 billion euros (over $63 billion) in fiscal 2007. The Bosch Group comprises Robert Bosch GmbH and its roughly 300 subsidiary and regional companies in over 50 countries. This worldwide development, manufacturing, and sales network is the foundation for further growth. Bosch spends more than three billion euros each year for research and development, and in 2006 applied for over 3,000 patents worldwide. The company was set up in Stuttgart in 1886 by Robert Bosch (1861-1942) as “Workshop for Precision Mechanics and Electrical Engineering.”
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 approximately 25,000 associates in more than 80 locations throughout the U.S., Canada and Mexico, with reported sales of $9.5 billion in fiscal 2007. For more information on the company, visit www.boschusa.com.
Editor’s note: Bosch uses a 2007 conversion rate of 1 Euro = 1.3704 U.S. Dollars and 2006 conversion rate of 1 Euro = 1.2560 U.S. Dollars.
Financial Results - April 2008