PI 037-14 Lohr a. Main, 2014-05-07

Bosch Rexroth: Agility in turbulent markets

Order intake gives reason for confidence

  • Uneven developments regionally and by sector
  • Order intake 2013 stabilized at 5.7 billion Euro
  • Focus on segments and regions with the most significant growth

Lohr – With a nominal 3.7 percent increase to 5.7 billion Euro, Bosch Rexroth stabilized the order intake in fiscal year 2013. When adjusted for currency effects, order intake even increased by 6.3 percent. At the same time, the company is positioning itself for the continuation of volatile market developments. It will meet the change in the surrounding business conditions with a deeper regional positioning with respect to the triad and a special focus on technical solutions that correspond to the global market developments.

“The past year has once again confirmed that the growth of the capital goods industry has at this time shifted to Asia,” said Dr. Karl Tragl, Chairman of the Executive Board of Bosch Rexroth AG, during the annual press conference in Frankfurt am Main. “While we are experiencing significant demand fluctuations in Asia, the markets there are still growing, in contrast to Europe.” Positive signals also predominate in North and South America, which, however, have been overcompensated in 2013 by exchange-rate effects. While the sales revenue in the Bosch Rexroth regions Americas and Asia Pacific from today's perspective will grow over the long term, sales development in Europe is restrained. As Bosch Rexroth achieves nearly 60 percent of its sales revenue in Europe, the market stagnation in this region creates a severe strain on the company's business outlook. Bosch Rexroth will therefore offer innovative solutions, continue to expand its presence in the global growth markets, and intensify its efforts to achieve a balanced revenue distribution across the triad.

Industry segments show sharp variations in growth

In comparison to 2012, the equipment market for mobile machines declined in 2013. For example, the global mining market collapsed and the demand for construction machinery also declined on a global level. Positive developments, specifically in agricultural machinery and road and commercial vehicles, were only partially able to compensate for the collapses in these segments.

In the Business Unit Industrial Applications, Bosch Rexroth was also confronted in 2013 with highly varied developments. The collapse in the market segments metallurgy, cutting machine tools and presses, where Bosch Rexroth achieves a high share of sales revenue, was decisive for the business development in this area.

Expectations in wind energy have faded due to the expiration of subsidies in the US and a weakness of the market in China. “The growth expectations of the past years are no longer realistic,” says Tragl. “Yet we are still convinced that wind energy has a great future over the long term.” Bosch Rexroth will focus on the German production of gear boxes for wind energy plants in the Witten plant in North Rhine-Westphalia to increase the production capacity utilization.

Technological solutions for changed markets

Despite the current challenges, Bosch Rexroth kept expenses for R&D in 2013 at the same high level as the prior year. “The last Hannover Messe impressively showed: with its innovative strength, Bosch Rexroth has successfully developed its position from a component supplier to a systems provider with high technological expertise,” said Tragl. Focal points for research and development are the growth areas energy efficiency, machine safety and connected industry 4.0.


“Order intake for 2013 was at 5.7 billion euro, which gives reason for confidence,” said Tragl. “We have grown strongly over the past years and then had to absorb equally strong declines in the markets. For the future we are therefore preparing to live with this increased volatility.” As a result, Bosch Rexroth will review all processes and sequences in production and in indirect functions worldwide in order to increase flexibility and productivity. “We will adjust the structure of regional capacities to the growth prospects. We will continue to grow successfully on a global basis,” said Tragl.

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, roughly 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. In 2013, its roughly 281,000 associates generated sales of 46.1 billion euros. (NB: Due to a change in accounting policies, 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, the Bosch Group invested some 4.5 billion euros in research and development and applied for some 5,000 patents. This is an average of 20 patents per day. 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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