|-Sales of Bosch in North America amounted to $8.6 billion in 2008
-Company continues to invest into renewable energy technologies
-Bosch balances savings and investments to better navigate difficult 2009
|FARMINGTON HILLS, Mich. – In 2008, the Bosch Group generated sales of $8.6 billion in the U.S., Canada and Mexico, representing 13 percent of the company’s global sales of $66.4 billion. All three of its business sectors – Automotive, Industrial Technology as well as Consumer Goods and Building Technology – were affected by the economic downturn to varying degree. In total, Bosch’s North American sales dropped by 10 percent compared to prior year. For 2009, the company expects a difficult year that calls for the right balance between rigorous savings and preserving the company’s future with needed investments. “Maintaining this balance, as well as our commitment to safe and sustainable technologies that address complex ecological, energy and mobility challenges, is essential to Bosch’s future success and continued growth,” said Peter Marks, chairman, president and CEO, Robert Bosch LLC, and member of the Board of Management, Robert Bosch GmbH. “Our 24,000 associates in our largely diverse businesses in the region are critical to achieving success as they have remained focused and resilient during these challenging times.”|
Research and development remain the basis for Bosch’s future
Despite the unfavorable environment, Bosch continued investment in its future. In the past year alone, a total of $9.5 billion for acquisitions, stock increases and capital expenditures was globally invested, thereof approximately $840 million in North America. Amongst others, the company acquired the measuring tools companies CST/berger and RoboToolz, garden watering specialist L.R. Nelson as well as Extreme CCTV, a manufacturer of video-based security technology. The company also strengthened its automotive aftermarket business in North America with the purchase of service equipment manufacturer Accu Industries and the friction business of the Morse Group. In addition to these investments, Bosch spent last year $5.7 billion on global research and development – a record sum. About 45 percent of this budget was aimed at products that help conserve resources and protect the environment. In 2008, the company, for example, joined the Massachusetts Institute of Technology’s Energy Initiative to collaborate on research focused on exploring new materials and concepts for efficient energy-conversion and energy-storage systems. Additionally, Bosch became a founding member of Stanford’s CarLab, an initiative focusing on interdisciplinary research into automotive vehicle safety and the environment.
New production facilities for wind power and geothermal energy technologies
The company continues to invest in the promising market for renewable energies. In 2009, Bosch will open its expanded administration and production facility for geothermal heat pumps in Fort Lauderdale, FL. Geothermal heat pumps, used to heat and cool residential buildings and commercial premises, are energy efficient and cost less than traditional heating and air-conditioning systems. Homeowners who install heat pump systems are eligible for a tax credit of 30 percent, or some $7,000, and can save up to 70 percent on their energy bills. In 2008, Bosch’s sales with heat pumps rose by 27 percent. Further, Bosch in North America maintained its 2007 sales level of $1.3 billion in the Industrial Technology sector. Having nearly doubled its sales of wind turbine hydraulic systems and gearboxes, Bosch Rexroth considers expanding its global production capacity into the U.S. While a final decision about the expansion has not yet been made, dedicated local manufacturing would help the company best respond to the booming wind energy market. In 2008, total capacity reached 25 gigawatts in the U.S., the most new wind-power output installed in the world. “As comprehensive incentives within the U.S. stimulus package and state regulations help generate opportunities for renewable energies, we expect the U.S. wind energy market will continue to grow rapidly,” Marks added.
Successes achieved despite weak automotive industry
Despite the decline in the North American automotive industry, Bosch generated sales of $5.3 billion in the sector and strengthened its market position through successes with products reducing fuel consumption, increasing safety and driver comfort. Bosch’s common rail diesel system is featured on the 2009 VW Jetta TDI. The vehicle – which can achieve 40 mpg on the highway – is the first 50-state compliant clean-diesel-powered passenger car launched in the U.S. Other vehicles with Bosch’s fuel-efficient common rail system that have entered or will enter the U.S. market in 2009 include the Audi Q7, BMW X5 and Mercedes ML320, all of which are eligible for substantial tax credits. Also, Bosch’s gasoline direct injection system is featured on the 2010 Lincoln MKS. Marketed by Ford as EcoBoost™, this technology, when coupled with turbocharging, allows for a smaller, more fuel-efficient engine with increased torque and performance. With regard to automotive safety, the Bosch-developed Electronic Stability Control technology is supplied as standard equipment on the 2009 Toyota Venza and Chevrolet Traverse, among others. Bosch further penetrated the market in body computers, supplied to a domestic automaker. This technology provides scalability across global vehicle platforms and offers distinct cost advantages, combining the vehicle's remote keyless entry and security system, while extending the entire system's range of operation.
Broad spectrum of leading technologies from East Coast to Mars
Despite the slowdown in the construction and consumer goods industries in 2008, Bosch sales of power tools, heating technology, security systems and household appliances remained on par with 2007 levels at $2.0 billion. Contributing to this result in a difficult business environment was Bosch’s wide range of technology-leading and eco-friendly products. Using the spiral-cut bit of Bosch’s brand Rotozip, NASA scientists on Phoenix Lander were able to collect valuable soil samples during their 2008 mission on Mars. It is the first tool in NASA's history to successfully cut into the permafrost surface of another planet and acquire a sample for analysis. Bosch’s direct-to-iSCSI storage and VIDOS video management and monitor wall solutions save considerable IT resources that support surveillance at the Gaylord National Resort Hotel and Convention Center, one of the largest combined hotel and convention centers on the East Coast. Also, Bosch was named 2009 Energy Star Partner of the Year for its energy-efficient appliances and consumer education efforts.
Bosch stepped into new business areas
At the 2009 American Telehealth Meeting in Las Vegas, Bosch debuted its Healthcare subsidiary and umbrella brand, which encompasses a full range of telehealth products and services. The new subsidiary aims to extend healthcare outside traditional institutional walls and into individuals’ homes. To form this unit, Bosch acquired Health Hero Network in 2007 and ViTelNet in 2009, and is now a leading supplier of telehealth technology to the U.S. Department of Veterans Affairs. Also, strengthening its footprint in the area of renewable energies, Bosch acquired photovoltaics company ersol Solar Energy AG, producer of wafer-based silicon solar cells and thin-film modules. Between now and 2012, Bosch will invest $780 million in a new manufacturing facility in Germany. Ersol’s subsidiary in Camarillo, Calif. specializes in silicon processing and supplies to the solar energy industry.
Phone: +1 248 876 6731
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 280,000 associates generated sales of 45.1 billion euros ($66.4 billion) in fiscal 2008. The Bosch Group comprises Robert Bosch GmbH and its more than 300 subsidiaries and regional companies in over 60 countries. Including sales and service partners, Bosch is represented in roughly 150 countries. This worldwide development, manufacturing, and sales network is the foundation for further growth. Each year, Bosch spends more than 3.5 billion euros ($5.7 billion), or eight percent of its sales revenue, for research and development and applies for over 3,000 patents worldwide. With all its products and services, Bosch enhances the quality of life by providing solutions which are both innovative and beneficial.
In North America, the Bosch Group manufactures and markets automotive original equipment and aftermarket products, industrial drives and control technology, power tools, security and packaging technology, thermotechnology, household appliances, solar energy and healthcare. Bosch employs nearly 24,000 associates in more than 70 locations throughout the U.S., Canada and Mexico, with reported sales of $8.6 billion in fiscal 2008. For more information on the company, visit www.boschusa.com.
Note: Figures based on 2008 conversion rate of 1 Euro = $1.4710 U.S.; 2007 rate of 1 Euro = $1.3704 U.S.
Bosch N.A. Earnings Release May 2009 - May 2009