Bosch Achieves Targets for 2022
Despite the challenging macroeconomic situation, Bosch succeeded in increasing sales and results in the 2022 business year. According to preliminary figures, the Bosch Group generated total sales of 88.4 billion euros. Sales thus increased some 12 percent over the previous year, or around 10 percent after adjusting for exchange-rate effects. EBIT (earnings before interest and taxes) from operations reached 3.7 billion euros. The EBIT margin from operations is expected to be around 4 percent.
“The difficult 2022 business year once again demonstrated that Bosch is crisis-proof while possessing tremendous innovative strength,” said Stefan Hartung, chairman of the board of management of Bosch. ”In an environment that remains challenging, we are securing our growth opportunities worldwide with targeted investments and expanding our international presence. We want to offer people around the world technology that is ‘Invented for life’ and thus make a meaningful contribution to society – from climate-friendly heating to energy saving and sustainable mobility.”
"Despite semiconductor shortages and a weak economy, all business sectors were able to increase their sales,” said Markus Forschner, member of the board of management and chief financial officer of Bosch. At 52.6 billion euros, the biggest business sector, Mobility Solutions, once again generated the highest sales in 2022. The 17 percent increase in sales came to 12 percent after adjusting for exchange-rate effects. “The good news is that our sales thus grew faster than automotive production,” Forschner said.
Nonetheless, Bosch cannot be satisfied with its profitability: margins were burdened by cost increases along the entire supply chain as well as upfront investments for the transformation of the company’s mobility business, he said. The Industrial Technology business sector achieved sales growth of 14 percent to 6.9 billion euros. The Consumer Goods business sector managed to increase sales slightly despite significant consumer reluctance to buy home appliances and power tools, Forschner said. It increased its sales by 2 percent to 21.5 billion euros. In the Energy and Building Technology business sector, on the other hand, growth reflected the unabated high demand for energy-efficient home and building technology. Forschner reported that sales increased 15 percent to 7 billion euros.
Bosch anticipates an economic slowdown and expects global economic output to grow by less than 2 percent in the current year. “The global business climate is already reflecting economic burdens,” Forschner said. “Rising interest rates are weighing on investment, especially construction activity and private consumption.” According to Forschner, Bosch is feeling an economic slowdown in important sectors and expects to see ongoing cost pressure in value chains. At the same time, a significant amount of capital must be outlaid to finance growth in future technologies.