|Solid Business Performance in 2011
|Long-term corporate strategy delivers results|
- Bosch 2011 sales in North America up 11 percent to $9.8 billion USD
- Company reaches highest North American sales level in past decade
- Near double-digit growth expected in the Americas for 2012
- Providing energy-efficient solutions is company’s driving force
FARMINGTON HILLS, Mich. – Bosch Group had a record-setting year in 2011 and the outlook remains positive for 2012. In fiscal year 2011, the leading supplier of technology and services achieved worldwide sales of 51.5 billion euros ($71.7 billion), reflecting the second highest rate of growth since 2000. Combined sales in North and South America contributed $12.8 billion or 18 percent of global sales, while Bosch’s North American operations posted $9.8 billion, an increase of 11 percent from the prior year ($8.8 billion) and the highest level of sales in the region for the past decade.
For 2012, Bosch expects its worldwide sales to grow between three and five percent, with even greater growth expected in the Americas.
According to Dr. Werner Struth, chairman, president and CEO of Robert Bosch LLC and member of the Bosch Board of Management: “In 2011, Bosch achieved solid results in North America. We continue to closely monitor the economic recovery in the region as well as market trends in all of our business sectors. For the North and South American region, we forecast a near double-digit increase in sales for 2012. Bosch is expanding its business through investments to further strengthen the company.”
Bosch increases number of associates
For the first time, as of Jan. 1, 2012, the number of Bosch associates worldwide exceeded 300,000. In the Americas, employment increased about 4 percent to nearly 35,000. North America represented 22,500 people in 2011, compared with 22,150 in 2010.
By the end of 2012, the number of associates worldwide is expected to grow to approximately 315,000.
“As businesses compete to attract, hire and retain the best talent,” Struth said, “Bosch’s three strategic pillars – broad global presence, focused diversification and our high level of innovative strength – appeal to the qualified candidates we seek to hire. These three pillars also provide a stable work environment for those who are already contributing to the success of the Bosch team.”
Energy efficiency underscores growth in business sectors
With a continued global focus on environmental protection and energy efficiency, more than 40 percent of Bosch’s 2011 global sales and about half of its research and development expenditure were devoted to technologies that helped achieve these objectives. In 2011, Bosch achieved sales of 1.5 billion euros ($2.1 billion) with systems harnessing renewable energy – this represents an almost fourfold increase in sales over the past five years.
Automotive Technology posts $6.3 billion in sales in North America
In North America, Bosch’s Automotive Technology business sector recorded sales of $6.3 billion in 2011, compared with $5.6 billion in 2010, a 13 percent increase. With the automotive industry continuing its recovery, Bosch’s growth remains strong as a leading provider of technologies that increase fuel efficiency, reduce emissions, and improve vehicle safety and comfort. With U.S. vehicle sales in 2020 estimated to reach 17.8 million units, Bosch predicts that more than 90 percent of those vehicles will have an internal combustion engine as the primary powertrain option. Vehicles equipped with gasoline direct injection engines will represent 8.8 million; gasoline port-fuel-injected engines, 2.6 million; diesel, 1.8 million; hybrid electric vehicles, 3.0 million; and plug-in hybrids and electric vehicles, 1.6 million.
In the U.S., the number of brands offering diesel passenger cars is expected to more than double by 2015, and Bosch wants to participate in this growth with its clean diesel systems.
In 2012, worldwide sales revenue per vehicle manufactured will reach nearly 400 euros (up 8 percent from 370 euros in 2008). In the Americas, 2012 sales revenue is forecast at 360 euros per vehicle. That’s an above-average increase of more than 28 percent since 2008 (280 euros).
Globally, Bosch invests some 400 million euros annually (more than $550 million) on further developing electromobility. With the advancement of electromobility, revenue per vehicle will grow over the long term.
In the Automotive sector, some key business news for the year includes:
- In March 2011, Cobasys, a subsidiary of SB LiMotive (the joint venture of Samsung SDI and Bosch), was awarded an $8.4 million contract by the U.S. Advanced Battery Consortium LLC to develop high-energy density lithium-ion battery cells and battery packs for use in electric vehicle applications.
- In January 2011, the Fairfax County (Va.) Solid Waste Program began using a Bosch Rexroth parallel hydrostatic regenerative braking system (HRB), which can generate up to 25 percent savings in fuel and energy costs, in the county’s first hydraulic hybrid trash and recycling vehicle.
- At the end of 2011, Bosch closed the acquisition of the Unipoint Group in Taiwan, an Asian producer of starters, alternators and wiper blades, further strengthening the Automotive Aftermarket division in North America and around the world.
Industrial Technology posts highest rate of growth
Worldwide, the Industrial Technology sector was bolstered by the strong economic recovery in the mechanical and industrial engineering markets. The Industrial Technology sector achieved the highest rate of growth among the sectors in North America, increasing its 2011 sales by 25 percent to $1.5 billion (2010: $1.2 billion).
- The U.S. Solar Industries Association reported that the U.S. solar industry installed a record 1,855 megawatts of photovoltaic capacity, which is more than double that of 2010, and is likely to see continued strong growth in 2012. Bosch Solar Energy established its regional footprint in two locations: Charlotte, N.C., and Irvine, Calif., enhancing the company’s capabilities to develop innovative products and leverage market opportunities.
- In August, Bosch Rexroth opened a 67,000-square-foot logistics center, concentrating its manufacturing of linear motion and factory automation products in Charlotte. This expansion resulted in approximately 45 new jobs.
Consumer Goods and Building Technology North America faces challenges
As the construction industry continued to face challenges in 2011, the Consumer Goods and Building Technology sector’s sales in North America remained steady at $2 billion, in local currency terms. Sales slightly declined by 5 percent in euro terms. Bosch continues to focus on energy-efficient technologies in this important sector.
- In November, Bosch Thermotechnology received the ENERGY STAR® Most Efficient Designation for its TA Series Geothermal Heat Pump.
- Bosch Home Appliances, an ENERGY STAR partner since 2007, recently received the Energy Star Sustained Excellence Award for the second consecutive year. Bosch is the only U.S. appliance manufacturer with 100 percent of its major appliances ENERGY STAR rated, thereby exceeding federal energy standards in dishwashers by up to 97 percent.
New activities reflect long-term orientation
Within the next decade, Bosch plans to generate 20 percent or more of its sales in the Americas. Some examples of activities that will help the Americas meet this objective include:
- As the global market leader in the field of telehealth, with more than 55,000 patients in the U.S. using its products each day, Bosch Healthcare strengthened its portfolio by integrating Telehealth and Care Solutions (Social Alarm/NurseCall systems) in December.
- In April 2011, Bosch Healthcare was awarded new contracts for its Health Buddy System and ViTelCare Home Health Monitor by the U.S. Department of Veterans Affairs, continuing Bosch’s decade-long relationship as a leading provider of telehealth services to the VA, supporting patients with chronic diseases and older persons in the home.
- Bosch continues to build on its potential in connectivity through investment in activities related to “the internet of things and services.” The company has 450 specialists working in this field, and the company will expand its competence and portfolio in software and IT solutions over the next decade.
- In May 2011, Bosch Software Innovations’ received a Merlin Award for Best Innovator from the German American Chamber of Commerce of the Midwest. The award recognizes Bosch’s eMobility Solution, a web-based software solution for electric vehicle charging infrastructure.
- Bosch expanded its product portfolio of MEMS sensors for consumer electronic devices. Akustica’s AKU230 digital microphone, the world’s smallest monolithic MEMS device, which is used by leading laptop manufacturers and consumer device manufacturers for high-quality voice input, was named one of Electronic Design News’ Hot 100 Products of 2011.
- The pending acquisition of the Service Solutions business of SPX Corporation will expand the Automotive Aftermarket division and strengthen Bosch’s focus on diagnostics, an area that is important to the company.
Investments fuel future growth
Bosch continues to position itself for growth through investments, which include capital expenditures and research and development that are equivalent to more than 14 percent of its 2011 global revenue.
Global capital expenditures in 2011 exceeded 3 billion euros ($4.5 billion), and more than 3.0 billion euros in investment is also planned for 2012. In 2011, investments totaled 350 million euros in the Americas.
- Continuing to strengthen its commitment to regional manufacturing, Bosch Rexroth announced last year an $80 million investment in its hydraulic manufacturing operations in Fountain Inn, S.C., an action expected to create nearly 160 new jobs over the next five years.
- Bosch automotive plans to expand its technical center in Plymouth Township, Mich., to make room for additional engineering and other technical positions. In Kentwood, Mich., a newly established manufacturing facility will produce exhaust gas aftertreatment modules for on- and off-highway vehicles.
Research and development activities remained strong
Worldwide, Bosch spent more than 4 billion euros on research and development in 2011. Nearly half of that expenditure focused on technologies that improve energy efficiency, conserve resources and protect the environment. More than 38,000 Bosch researchers and developers design, test and research innovative systems, components and methods worldwide; this number is expected to grow to 43,000 by the end of 2012. Currently, one-fourth of this group is focused on software engineering. Approximately 2,500 Bosch researchers are currently located in the Americas and that figure is expected to grow to 2,800 by the end of 2012.
“In 2012, we expect to spend 4.6 billion euros for research and development, 400 million euros more than in 2011,” announced Dr. Volkmar Denner, the Bosch Board of Management member for research and development, at the recent annual press conference of the Bosch Group. Dr. Denner will succeed Franz Fehrenbach as CEO of the Bosch Group on July 1, 2012.
“We are also strengthening our R&D teams in the regions,” said Struth, “which by year’s end will comprise 2,800 associates in the Americas. Innovative strength has always been – and continues to be – a core element of our strategy. Our investment in research and development drives our ability to provide innovative solutions for businesses and consumers.”
At its Research and Technology Center (RTC) locations in Palo Alto, Calif.; Pittsburgh, Penn.; and Cambridge, Mass., Bosch researchers focus on a variety of areas, including software engineering, human machine interface, autonomous systems, and energy conversion and storage.
- Also, in 2011, Bosch launched Bosch Energy Research Network, in which the company will invest approximately $10 million over eight years, working jointly with leading U.S. universities to research and accelerate progress in important fields of the environment, energy and mobility.
- In 2011, Bosch, Stanford University and the University of South Florida were awarded a $1.2 million, three-year grant from the National Science Foundation to fund a project focused on research and education on waste heat harvesting in vehicle applications.
- Additionally, Bosch continues its involvement in the Personal Robot 2 Beta program, a highly valued research program to accelerate robotics technology development, with the goal of enabling future service robot applications, such as transport assistance, field robotics and future household robots.
Social responsibility expanded
As part of the company’s 125th anniversary activities in 2011, Bosch announced a new U.S.-based foundation. The Bosch Community Fund will award up to $3 million in grants annually, providing greater support for charitable and community efforts, with a focus on science, technology and environmental initiatives.
Note: Year-to-year comparison percentages reflect U.S. dollars. Conversion rate for 2011: 1 EUR = $1.39184. Conversion rate for 2010: 1 EUR = $1.32572.
In the U.S., Canada and Mexico, the Bosch Group manufactures and markets automotive original equipment and aftermarket products, industrial drives and control technology, power tools, security and communication systems, packaging technology, thermotechnology, household appliances, solar energy, healthcare telemedicine and software solutions. Having established a regional presence in 1906, Bosch employs over 23,000 associates in more than 100 locations, with sales of $9.8 billion in fiscal year 2011. For more information, visit www.boschusa.com.
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, more than 300,000 associates generated sales of 51.5 billion euros in fiscal 2011. The Bosch Group comprises Robert Bosch GmbH and its roughly 350 subsidiaries and regional companies in some 60 countries. If its sales and service partners are included, then Bosch is represented in roughly 150 countries. This worldwide development, manufacturing, and sales network is the foundation for further growth. Bosch spent some 4.2 billion euros for research and development in 2011, and applied for over 4,100 patents worldwide. With all its products and services, Bosch enhances the quality of life by providing solutions which are both innovative and beneficial. Further information is available online at www.bosch.com and www.bosch-press.com.
Earnings - May 2012