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Lohr am Main, 2018-04-19

Bosch Rexroth posts strong revenue growth

Boost from strategic realignment and restructuring

  • Revenue of EUR 5.5 billion in 2017 – an increase of more than ten percent
  • Strong 2017 order intake lays the foundation for a good start to 2018
  • Factory of the future as the growth driver for factory automation

Lohr – Bosch Rexroth posted strong revenue growth of 10.4 percent in the past year. The supplier to the machine construction and plant engineering industry generated total revenue of EUR 5.5 billion. New orders rose by more than 27 percent in 2017. Building on that, Bosch Rexroth was able to continue its strong performance in 2017 in the first months of this year.

Thanks to its new strategy and structure, Bosch Rexroth has expanded its competitive position and won additional market share. The technology company also benefited from a sharp recovery in the market environment in 2017. The highest growth rates were posted by the Mobile Applications and Factory Automation business units. The company’s traditional core business of industrial hydraulics turned in a relatively moderate performance in 2017. “We’re proud of our development and have achieved our obejctives. Bosch Rexroth has undergone an enormous change – from its internal structures to its strategy – as part of the transformation program we launched in 2016. The effort has been worthwhile,” was how Chairman of the Executive Board Rolf Najork summed up 2017.

Global growth and expansion of the company’s international footprint

Bosch Rexroth grew strongest in the Asia-Pacific region, where it increased revenue by 20.7 percent year over year. However, the Americas and Europe regions also performed positively, growing revenue by ten and 8.5 percent respectively. In Vietnam, Bosch Rexroth captured a large order to construct a new flood barrier in Ho Chi Minh City. The company also increased its international footprint further by taking over Maestranza Diesel in Peru and Hytec Holdings in South Africa in March 2018. It employed more than 30,500 people worldwide at the end of the year, around 3.5 percent more than in the previous year.

Technological differentiation, synergies and topics of the future

As part of its growth strategy, Bosch Rexroth is mainly committed to technological differentiation, leveraging synergies in the market and within the Bosch Group, and topics of the future. The latter include in particular software-based, automated and connected solutions. Alongside its traditionally strong position in industrial hydraulics, and especially mobile hydraulics, Bosch Rexroth is thus positioning itself as a provider of Industry 4.0 solutions for the factory of the future.

The factory of the future: Bosch Rexroth’s vision of Industry 4.0

Bosch Rexroth is occupying a major market of the future with its connected production technologies for Industry 4.0 applications. “It is our objective to capture a leading position and be an innovation driver in this area,” emphasized Najork. “But we have to think far more radically. Manufacturing companies need to become even more flexible and faster. Our concept for the factory of the future envisages machinery that keeps on reconfiguring itself flexibly to match the order situation.”

The fully connected factory as envisioned by Bosch Rexroth is an intelligent space where the only fixed features are the floor, walls and ceiling. Everything else can be moved freely; production sets itself up and configures itself flexibly – from one-off to mass production: Machines drive in and out as needed, assembly lines grow or shrink in size, autonomous transport robots supply employees with components. Robots work shoulder to shoulder with human colleagues, relieving them of monotonous or strenuous activities. An ultra-fast 5G wireless network allows information exchange in real time, while artificial intelligence enhances the quality of products thanks to early detection of errors.

“This factory of the future is our vision of Industry 4.0. Bosch Rexroth is systematically gearing its portfolio toward the future of the fully connected industry,” stated Najork. The technology company will present its concept for the factory of the future at the upcoming 2018 Hannover Messe trade fair, showcasing what it is already capable of today in the field of factory automation and the solutions it is developing for tomorrow and beyond.

Connected solutions for all technologies

Bosch Rexroth is developing a wide range of new products, software and solutions, not only in factory automation, but also in its Machinery Applications and Engineering business, as well as the Mobile Applications area, with the focus on electrification, electronification and connectivity. One key approach is connectingmachinery and systems across technologies by combining electromechanics, hydraulics and linear technology. This will help increase the efficiency of existing machines and equipment, for example.

Expansion of robotics expertise

As part of its focus on topics of the future, Bosch Rexroth is systematically expanding its expertise in the field of robotics. With its collaborative robot APAS assistant, the company is extending its portfolio of automatic production assistants.

Moreover, Bosch Rexroth is strengthening itself with two start-up teams from the Bosch start-up platform Grow: Intralogistic Robotics develops software for networking and for the automation of material transport. “As a result, we’ll be able to offer our customers solutions for the factory of the future that cover the entire value chain,” noted Najork. Deepfield Robotics develops connected, autonomous machines for sustainable agriculture. They reduce the consumption of pesticides and water, for example, by detecting weeds with smart cameras and removing them without the use of herbicides. “We’re already strongly represented in the farming sector with our mobile hydraulics. Autonomous agricultural machines are a logical expansion of our portfolio in an adjacent business segment. As a result, we can leverage additional synergies and widen the range of products we offer our customers,” said Najork. Grow is the internal Bosch incubator and home for start-ups that develop new business in new markets.

New brand image at the Hannover Messe trade fair

“Bosch Rexroth’s development shows that we’re on the right track with our strategic realignment and expansion of our activities in the field of Industry 4.0,” said Najork. To make its transformation visible to the outside world, Bosch Rexroth has re-branded and will premiere its new brand at this year’s Hannover Messe trade fair starting on April 23, 2018.

Economic outlook

The good start to 2018 gives cause for cautious optimism. “We are pleased with the level of demand in industrialized countries in the current year to date. Regionally, there is relatively strong buoyancy in Europe. However, we estimate that our business growth in China will be somewhat weaker than last year.” added Najork. Bosch Rexroth expects the market to develop positively as a whole, albeit probably not with the same dynamism as the previous year. “We anticipate stable performance in the market segments Automation and Industry 4.0. However, we also feel optimistic about more volatile markets, such as the construction and mining sectors, which are driven by commodity prices,” stated Najork.

 

Bosch Rexroth press releases Hannover Messe 2018

 

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. It enables fully connected applications with intelligent components, tailored system solutions, and services. Bosch Rexroth offers its customers hydraulics, electric drives and controls, gear technology and linear motion and assembly technology, including software and interfaces to the Internet of Things. With locations in over 80 countries, more than 30,500 associates generated sales revenue of 5.5 billion euros in 2017.

To learn more, please visit www.boschrexroth.com

The Bosch Group is a leading global supplier of technology and services. It employs roughly 400,500 associates worldwide (as of December 31, 2017). According to preliminary figures, the company generated sales of 78 billion euros in 2017. 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 industry. 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 create solutions for a connected life, and to improve 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 subsidiaries and regional companies in some 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 62,500 associates in research and development.

Additional information is available online at www.bosch.com , iot.bosch.com , www.bosch-press.com , twitter.com/BoschPresse .

 

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Contact

Susanne Gehrling
Maria-Theresien-Straße 23
97816 Lohr am Main
Phone: +49 9352 18-1589
Susanne.Gehrling@boschrexroth.de



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