Bosch Rexroth: Growth in spite of weak markets Sales grew 3.5 percent in 2014, to some 5.6 billion euros

• Market shares gained in major industries

• R&D expenditure continues to be high

Bosch Rexroth grew once again in 2014 and generated sales of some 5.6 billion euros. Adjusted to include its pneumatics activities, which were sold effective January 1, 2014, the company increased its sales by 3.5 percent over the previous year. “With new products we made a major contribution to Bosch Rexroth’s growth in 2014,” said Karl Tragl, the president of Bosch Rexroth, at the drive and control company’s annual press conference. These changes enabled the company to grow in spite of a tough market environment.

Growth expected in 2015 despite a weak economy

Tragl does not expect any major improvements to the economy in 2015. “Europe is recovering slowly, and major growth markets such as Brazil are not showing any real momentum. At the same time, in 2015 we also expect to face a difficult situation in China as market leader for components and systems for mobile work machinery. The country’s market for construction machinery is in the midst of a slowdown once again.” Stable growth is expected only in the United States. Moreover, Bosch Rexroth has a good starting position in Africa as a result of its sales partnership with South Africa’s Hytec. “We will continue on this course in 2015. This year, too, we are focusing our efforts on increasing the competitiveness of all our fields of business,” Tragl said.

Bosch Rexroth focusing on three technology market trends

Bosch Rexroth is focusing its efforts on three technology market trends: energy efficiency, machine safety, and connectivity. When it comes to connectivity, commonly referred to as Industry 4.0, the company considers itself a lead provider for a broad range of technologies. “All technologies must be Industry 4.0-enabled,” said Tragl. The company’s ABPAC modular hydraulic power unit demonstrates how this is done. The unit can detect and assess operating conditions and gives practical instructions in the event of wear. Moreover, it is capable of integrating itself into connected environments via open interfaces. As a result, maintenance technicians can read status updates on their smartphones or tablet computers anywhere and at any time.

Business development in 2014 by region and field of business

In Europe, Bosch Rexroth was able to increase its sales by 4.6 percent in 2014. In the countries outside of Germany, the figure was over eight percent. This strong growth can be attributed mainly to the company’s activities in the Netherlands, the U.K., and Italy. In Germany, where the market developed slowly, sales stagnated.

Sales development in the United States was positive once again. In the Americas, Bosch Rexroth recorded more than three percent growth, despite a strong decrease in sales in Brazil. Other major growth markets also showed signs of weakness in 2014. “The capital goods market was challenging last year, especially in China and Russia. And we don’t expect to see any significant momentum in this segment for 2015, either,” said Tragl.

Industrial applications recorded satisfying sales growth

A look at the different market segments shows sales growth, especially for industrial applications. Here, the manufacturer of drive and control technology grew mainly in the electronics and semiconductor industries, in the automotive and construction machinery sectors, as well as in the energy technology, marine and offshore sectors. In each of these major industries, Bosch Rexroth was able to gain market shares.

R&D expenditure continues to be above the industry average

With investments amounting to 122 million euros, Bosch Rexroth’s investment-to-sales ratio remained stable. In 2014, the company’s R&D expenditure stood at 340 million euros. This is more than six percent of sales, which is above the traditional industry average. “We continue to focus on innovation. At SPS/IPC/DRIVES 2014 and at the Hannover Messe 2015, we launched more new products than we have in a long time,” said Tragl.

In 2014, Bosch Rexroth’s global workforce decreased in number, to some 33,700 associates around the world. Of these, around 16,800 were located in Germany. In Germany alone, last year more than 170 young people started an apprenticeship or a cooperative education program at Bosch Rexroth.