- Approx. 6.2 billion euros: 2019 revenue at previous year’s level
- General economic weakness and COVID-19 pandemic cloud business expectations for 2020
Bosch Rexroth held up well in 2019 in a difficult environment and despite a sharp drop in incoming orders. At 6.2 billion euros, sales remained stable at the previous year’s record level. The company benefited from a solid core business in hydraulics and the further expansion of its product range in factory automation as an important door opener for new markets.
“We draw a positive conclusion for 2019,“ says Rolf Najork, member of the Board of Management of Robert Bosch GmbH, responsible for the Industrial Technology division and Chairman of the board of Bosch Rexroth AG. ”In view of the volatile markets and the noticeable economic slowdown, this very good result was anything but certain. It shows that our broad positioning with different divisions is a great advantage and that we have set the right course with our structural adjustments.”
In 2019, Bosch Rexroth was able to match the success of the previous year in all regions. The core markets of Germany and Europe remained the strongest. Sales in Germany dropped by 4.1 per cent to 1.4 billion euros. In the remaining European markets (excluding Germany), sales declined by 0.3 per cent to 2.1 billion euros compared to the previous year. In the growth markets in the Asia-Pacific / Africa region, Bosch Rexroth achieved sales of 1.6 billion euros, which equals a slight increase of 0.6 per cent. The region of North and South America recorded a 5.3 per cent rise to 1.1 billion euros. At the end of the fiscal year (December 31, 2019), the company employed around 31,000 people worldwide.
Economic environment and COVID-19 pandemic cloud prospects for 2020
Bosch Rexroth expects business to decline in all regions and sectors in the current fiscal year 2020 due to the general economic weakness and the structural change in customer sectors closely linked to the automotive industry. Order intake declined by 20.3 percent in the course of 2019.
Additionally, the global COVID-19 pandemic is currently clouding business expectations for 2020. Hence, the systematic implementation of measures to improve competitiveness in all areas is particularly important for Bosch Rexroth.
“We are very much concerned with the current developments regarding COVID-19. We have taken extensive measures during the past weeks to protect our employees, customers and partners while ensuring the best possible supply,” says Najork, “Safety is our top priority throughout. We want to be a reliable and responsible partner for our customers, also and especially in such global crises”.
Focus on innovations and new markets
Bosch Rexroth remains one of the most significant innovation drivers and pioneer for new technologies in its markets. For example, the company invested some 348 million euros in research and development in the fiscal year 2019 – an increase of 6.2 per cent over the previous year. The company continues to focus on developing connected and fully automated solutions in the two major areas of hydraulics and factory automation.
All divisions contributed to the success of Bosch Rexroth in 2019. While the core business with industrial and mobile hydraulics proved to be a solid foundation, the factory automation division with its focus on Industry 4.0 and the vision of the fully connected factory of the future, developed into an important door opener for new markets and customers.
Machinery Applications and Engineering: connected and intelligent hydraulics
Bosch Rexroth is actively driving change in its traditional core business of industrial hydraulics: smart hydraulic components and systems such as the compact hydraulic unit CytroBox can be quickly and easily integrated into connected manufacturing facilities. They are Industry 4.0 ready and offer services for the Internet of Things (IoT), for example for condition monitoring of machines and plants.
Mobile Hydraulics: Smart Solutions for the mobile work machine of the future
Despite the tense market environment, Bosch Rexroth was able to further expand its market share in mobile hydraulics in 2019. New activities in the fields of automation and driver assistance systems, electrification and IoT are future key topics.
With BODAS Connect, Bosch Rexroth offers an open, scalable end-to-end solution to connect mobile work machines with each other. It enables customers to retrieve and analyze data from the mobile application. At the 2019 BAUMA trade fair for construction machinery, the company also presented the first components of a future range of electrification systems for work machines. These solutions support customers in reducing emissions, while further increasing performance. Here, Bosch Rexroth benefits from the long-standing Bosch expertise in electromobility.
Factory Automation: new standards for connected manufacturing
Connected assembly and intralogistics remain an important strategic focus for Bosch Rexroth’s factory automation division. The spotlight is on the vision of the factory of the future with software-based, automated and connected solutions. The company was able to further strengthen its position as an innovation driver in 2019, amongst others with the open ctrlX AUTOMATION platform.
As the first 5G-capable automation platform from Bosch Rexroth, ctrlX AUTOMATION connects a wide range of devices with the new communication standard and ensures consistent connectivity in factories. Existing machines can be upgraded with the new technology via retrofit solutions. The Active Shuttle, which was also introduced in 2019, ensures greater flexibility and higher productivity in the automated factory. The autonomous transport system sets new standards in intralogistics, transports loads of up to 260 kilograms and is loaded and unloaded fully automatically using an integrated lifting platform.
“GoGreen” project: targets for energy and CO₂ savings exceeded
In 2019, Bosch Rexroth was also able to record important achievements in CO2 neutrality: as part of the Bosch Group, the supplier of drive and control technologies has set itself ambitious goals to reduce energy consumption and CO₂ emissions. In the scope of the Bosch Rexroth project “GoGreen”, energy efficiency is being systematically improved in all plants and at customers’ sites since 2011 – with an extremely positive outcome: by the end of fiscal 2019, Bosch Rexroth had saved 620 million kilowatt-hours of electricity and gas worldwide thanks to “GoGreen,” corresponding to more than 265,000 tons of CO₂. This equals the annual energy consumption of a city with some 80,000 inhabitants. Energy consumption at the Bosch Rexroth locations was reduced by 20 to 50 per cent. Since the end of 2019, Bosch Rexroth has achieved a CO2-neutral “footprint” in Germany.
As one of the world’s leading suppliers of drive and control technologies, Bosch Rexroth ensures efficient, powerful and safe movement in machines and systems of any size. The company bundles global application experience in the market segments of Mobile Applications, Machinery Applications and Engineering, and Factory Automation. With its intelligent components, customized system solutions and services, Bosch Rexroth is creating the necessary environment for fully connected applications. Bosch Rexroth offers its customers hydraulics, electric drive and control technology, gear technology and linear motion and assembly technology, including software and interfaces to the Internet of Things. With locations in over 80 countries, roughly 31,000 associates generated sales revenue of roughly 6.2 billion euros in 2019.
To learn more, please visit www.boschrexroth.com
The Bosch Group is a leading global supplier of technology and services. It employs roughly 403,000 associates worldwide (as of December 31, 2019). According to preliminary figures, the company generated sales of 77.9 billion euros in 2019. Its operations are divided into four business sectors: Mobility Solutions, Industrial Technology, Consumer Goods, and Energy and Building Technology. As a leading IoT company, Bosch offers innovative solutions for smart homes, smart cities, connected mobility, and connected manufacturing. It uses its expertise in sensor technology, software, and services, as well as its own IoT cloud, to offer its customers connected, cross-domain solutions from a single source. The Bosch Group’s strategic objective is to deliver innovations for a connected life. Bosch improves quality of life worldwide with products and services that are innovative and spark enthusiasm. In short, Bosch creates technology that is “Invented for life.” The Bosch Group comprises Robert Bosch GmbH and its roughly 440 subsidiary and regional companies in 60 countries. Including sales and service partners, Bosch’s global manufacturing, engineering, and sales network covers nearly every country in the world. The basis for the company’s future growth is its innovative strength. At 125 locations across the globe, Bosch employs some 72,000 associates in research and development.
Additional information is available online at www.bosch.com