PI 009-14 Lohr a. Main, 2014-03-04

Growth opportunities after a difficult year 2013

Bosch Rexroth registers decline in sales in 2013

> Sales at 5.7 billion Euro in 2013

> Stagnation in Europe main cause of the decline in sales

> Research and development cost remained constant

Lohr – In 2013, Bosch Rexroth was not able to continue the record sales of 2012. In the past business year, the drive and controls specialist generated a sales revenue in the amount of 5.7 billion Euro according to preliminary figures, after 6.5 billion Euro in the previous year. The company registered the largest decline in sales in Europe with respect to the triad. “Due to the long lead times in machinery construction, this development was already showing in incoming orders towards the end of 2012,” emphasizes Dr. Karl Tragl, Chairman of the Executive Board of Bosch Rexroth AG. At the annual press conference in April 2013, Bosch Rexroth had already announced a difficult year. “However, for a few months now, we have been noticing a stabilization in the order intake and are expecting growth once again for the current year,” Tragl says.

2013 was affected by a clearly cooled-down global investment climate. Contrary to the first assessments, it also remained restrained in the second semester. The business development of Bosch Rexroth mirrors the difficult situation. The economic low in Asia, especially in China, impacted the construction machinery industry to a particularly high degree. An operating unit in which Bosch Rexroth is strongly represented by tradition and which was hit particularly hard by the development. The mining industry in South Africa also felt the decline in demand for raw materials from China and recognized a considerable decline accordingly. The US, in turn, showed a pleasant development, although it was not sufficient by itself to continue the worldwide record sales of 2012.

“While we saw a short-term recovery in Asia, we expect in Europe that the market will only attain the pre-crisis level of 2008 in a few years,” Tragl says. Against the background of this ongoing shift of the markets, the company will continue to work intensely on a balanced sales revenue distribution in the triad.

Research and development continues to be above sector average

Despite the weak economic activity of 2013, the company has kept its expenses for research and development at the high level of the previous year. That corresponds to a sales share of 6,5% and is again above the industry average. “This is how we lay the foundation for further technology leadership,” Tragl says. Ultimately, three major trend issues stand in the foreground for Bosch Rexroth: increased energy efficiency, increased machine safety and, of course, Connected Industry. “In all three challenges, Bosch Rexroth is a worldwide leader and is designing the technical change,” Tragl confirms.

Bosch Rexroth will present the final business figures for 2013 on May 7th, 2014 in Frankfurt am Main and give an outlook for the current business year.

Economical, precise, safe, and energy efficient: drive and control technology from Bosch Rexroth moves machines and systems of any size. The company bundles global application experience in the market segments of Mobile Applications, Machinery Applications and Engineering, Factory Automation, and Renewable Energies to develop innovative components as well as tailored system solutions and services. Bosch Rexroth offers its customers hydraulics, electric drives and controls, gear technology, and linear motion and assembly technology all from one source. With locations in over 80 countries, more than 36,700 associates generated sales revenue of approximately 5.7 billion euros in 2013.

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The Bosch Group is a leading global supplier of technology and services. According to preliminary figures, its roughly 281,000 associates generated sales of 46.4 billion euros in 2013 (Note: due to a change in the legal rules governing consolidation, the 2013 figures can only be compared to a limited extent with the 2012 figures). Its operations are divided into four business sectors: Automotive Technology, Industrial Technology, Consumer Goods, and Energy and Building Technology. The Bosch Group comprises Robert Bosch GmbH and its more than 360 subsidiaries and regional companies in some 50 countries. If its sales and service partners are included, then Bosch is represented in roughly 150 countries. This worldwide development, manufacturing, and sales network is the foundation for further growth. In 2013, Bosch applied for some 5,000 patents worldwide. The Bosch Group’s products and services are designed to fascinate, and to improve the quality of life by providing solutions which are both innovative and beneficial. In this way, the company offers technology worldwide that is “Invented for life.”

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Jana Benzinger
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