Bosch Rexroth achieves record sales of 7 billion euros in fiscal 2022
Despite the challenging environment, Bosch Rexroth achieved double-digit sales growth in fiscal 2022
Demand for new orders remained strong at 7.3 billion euros
Investments in research and development, innovation and production networks reached a record high
Expansion and enhancement of the product portfolio through acquisitions and partnerships
In a challenging environment, we are cautiously optimistic about the prospects for 2023
In fiscal 2022, Bosch Rexroth achieved sales of 7 billion euros, a record high in the company’s history. This sales increased by 14.1% compared with the previous year. The amount of new orders was 7.3 billion euros, a slight decrease compared with the previous year, but still just below the record high. The company is enhancing the competitiveness of its product portfolio through acquisitions and strategic cooperation, and focusing on future business growth and balanced development of regional business. Bosch Rexroth’s investment in existing and new production sites and research and development has reached a record high. As of the end of 2022, Bosch Rexroth has approximately 32,100 employees worldwide, an increase of 3% compared with the previous year.
“Despite the difficult macroeconomic environment in 2022, we have continued Bosch Rexroth’s strong growth momentum. We continue to focus on product technology research and development in the fields of hydraulics, electrification and factory automation, and enhance the competitiveness of our product portfolio through acquisition projects in order to achieve future performance growth and meet the changing needs of customers. Even in such difficult times, Bosch Rexroth has always been an innovative and reliable partner.” said Dr. Steffen Haack, CEO of Bosch Rexroth AG.
Sales and orders: Despite the challenges, the company’s overall sales and new orders performed strongly
In fiscal 2022, Bosch Rexroth achieved sales of 7 billion euros, an increase of 14.1%, setting a new historical record. In the previous fiscal year, Bosch Rexroth’s sales were 6.2 billion euros, which had returned to pre-epidemic levels. Compared with the sales results in 2019, Bosch Rexroth’s sales in fiscal 2022 increased by 849 million euros.
The largest increase was in the Americas, with sales reaching 1.4 billion euros, an increase of 34.8%. Europe excluding Germany followed closely with sales of 2.4 billion euros, an increase of 16.5%; in Germany, sales increased by 11.3% to 1.4 billion euros. Sales growth in the Asia/Africa/Australia region was relatively weak, with a total of 1.8 billion euros. China is the largest market in this region and one of the largest sales markets for the entire Bosch Rexroth Group; under the influence of the coronavirus, sales in China fell by more than 9%. However, sales growth in other regions compensated for this problem and ultimately set a new record.
In addition to actual growth, exchange rate fluctuations and price fluctuations also have an impact on turnover. Through mutual understanding and cooperation with customers, Bosch Rexroth effectively coped with the sharp increase in raw materials, energy, logistics and labor costs. But even so, the cost pressure faced by the company is still huge.
In 2022, Bosch Rexroth’s new orders amounted to approximately 7.3 billion euros, a decrease of 2.1% compared with the previous year. Bosch Rexroth effectively responded to the challenges brought about by factors such as epidemic policies and conflicts in Europe. However, new orders fluctuated during the year, depending on the region or technology.
R&D and global production network: Focus on customer interests, investment reaches new highs
Bosch Rexroth has once again increased its investment in R&D and its global production network, focusing on innovation and efficient service models for customers.
In fiscal 2022, Bosch Rexroth invested around 388 million euros in research and development. This amount accounts for about 5.5% of total sales and is also a record high in the company’s history. The focus areas of investment include digitalization, the eLION product platform for electrification of walking machinery, the ctrlX AUTOMATION platform for factory automation, the ACTIVE Shuttle autonomous mobile robot, and the H4U system software platform for industrial hydraulics. Bosch Rexroth will present many of these innovations at the Hannover Messe from April 17 to 21, 2023.
Bosch Rexroth invested 274 million euros in its global production network of 46 production sites, accounting for 3.9% of sales and an increase of 53.1% compared with the previous year. This investment also set a record in the past decade. The investment was used to modernize existing production sites and build new production sites. Bosch Rexroth is currently building new plants in Querétaro (Mexico) and Charlotte (North Carolina, USA) to strengthen the regional supply chain in North America. In Slovenia, Bosch Rexroth is merging three existing production sites into a new plant in Ljubljana to serve the business growth in the European market. In Germany, the company invested more than 120 million euros in the construction of office buildings, logistics facilities and production facilities for the iron foundry in Lohr and promoted the modernization of the plant in all aspects. Outside of Germany, Bosch Rexroth invested the most in Turkey and China.
These measures are conducive to creating a regionally balanced production network and achieving sustainable development to further optimize product supply and services.
Acquisitions and partnerships: further enhancing the competitiveness of the product portfolio and the potential for business growth
In 2022, Bosch Rexroth acquired several companies and company shares and established some joint ventures.
The largest acquisition was in the hydraulic business area, which was announced in July 2022: HydraForce is a company specializing in mechanical and solenoid cartridge valves, as well as hydraulic manifolds, headquartered in the United States, with a total of about 2,100 employees. Since the acquisition was completed in February 2023, the addition of HydraForce has significantly enhanced Bosch Rexroth’s business strength in the field of compact hydraulic systems, especially in North America, and will achieve further growth in Asia.
In factory automation, Elmo Motion Control, headquartered in Israel, has become a part of Bosch Rexroth’s Automation and Electrical Control Division since November. The company is responsible for the development and production of high-end electric servo drives and drive controllers for industrial automation. These products will further improve the product portfolio based on the ctrlX AUTOMATION automation platform.
Bosch Rexroth acquired a majority stake in Danish robot brand Kassow Robots in May. Kassow Robots is mainly responsible for the development and production of collaborative robots for industrial applications.
In China, Bosch Rexroth has established two new companies, namely Leda Bohua Automation (Shanghai) Co., Ltd. in the field of factory automation and Lezhuo Bowei Hydraulics Technology (Shanghai) Co., Ltd. in the field of mobile machinery and industrial hydraulics, to further achieve business growth by providing products that meet market needs for specific markets.
Number of employees: The global team continues to grow
As of the end of 2022, Bosch Rexroth has a total of about 32,100 employees. The number of employees has increased by about 1,000 compared with the previous year, an increase of about 3.2%. The size of the team has developed in all regions. The department with the largest demand for employees is the factory automation and digitalization department.
Looking ahead to 2023: Cautious optimism in a still challenging environment
“In 2022, I was impressed by how our global team, based on a strong corporate culture, helped our customers successfully overcome many difficulties with great enthusiasm. We are cautiously optimistic about 2023. Our newly acquired companies complement our existing businesses and inject further momentum into sales growth,” said Holger von Hebel, CFO of Bosch Rexroth AG. There are still many challenges to deal with, including conflicts in Europe, problems with the supply and logistics of raw materials, and uncertainties in the international business environment. “That is why we need to continue to improve our business. For example, we are further consolidating our agile and results-oriented corporate culture through various measures. In addition, we are gradually promoting the digital transformation of various parts of the company and paying more attention to actions related to sustainability,” said von Hebel.
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