Bosch Stays on Course through Crisis to Achieve a Positive Result
In the 2020 business year, the Bosch Group achieved a positive result despite the effects of the coronavirus crisis and the decline in automotive production. In fact, company performed better than initially expected.
According to preliminary figures, earnings before interest and taxes (EBIT) amounted to some 1.9 billion euros. This puts the estimated EBIT margin at around 2.5 percent. After adjusting for restructuring expenditure, estimated EBIT is approx. 3.3 billion euros, a margin of roughly 4.5 percent. Total Bosch Group sales amounted to 71.6 billion euros: a year-on-year drop of 4.4 percent after adjusting for exchange-rate effects.
“Despite the effects of the pandemic, we were able to achieve a very positive result. Above all, we have the extraordinary commitment of our associates to thank for that,” said Volkmar Denner, chairman of the board of management of Bosch. The company’s broad diversification and global footprint also proved their worth, he added. “By investing in areas of future importance, such as sustainable mobility, the internet of things, and artificial intelligence, we are further expanding our innovation leadership.”
Sales were down in the Bosch operating units as a result of the coronavirus pandemic; only the consumer goods business saw sales growth. The Mobility Solutions business sector, which was hit particularly hard by manufacturing shutdowns in the automotive industry, recorded sales of 42.3 billion euros. Despite a year-on-year decline of 9.5 percent, however, the business grew faster than the market, where automotive production contracted by 15 percent. After adjusting for exchange-rate effects, its sales fell 8.1 percent. Consumer Goods increased its sales by 5.2 percent to 18.6 billion euros. After adjusting for exchange-rate effects, this figure rises to 8.2 percent.
Bosch expects the global economy to recover slowly in 2021. After contracting by around 4.5 percent last year, Bosch anticipates growth of just under 4 percent this year.