Bosch Rexroth generated sales of 7 billion euros, a record for the company's history

Create Date: 2024-8-30 12:03:23|Source: Rexroth/Rexroth

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;

Record investments in R&D, innovation and production networks;

Expansion and enhancement of product portfolio through acquisitions and partnerships;

In a challenging environment, Bosch Rexroth is cautiously optimistic about the outlook for 2023.
Bosch Rexroth generated sales of 7 billion euros, a record for the company's history

Comparison of Bosch Rexroth's financial data in 2022 and 2021 (Source: Bosch Rexroth China)

In fiscal 2022, Bosch Rexroth generated sales of 7 billion euros, the highest in the company's history. This sales increased by 14.1% compared to the previous year. At 7.3 billion euros, new orders were slightly lower than the previous year, but still only below the all-time high. The company is enhancing the competitiveness of its product portfolio through acquisitions and strategic partnerships, and is focusing on future business growth and balanced regional development. Bosch Rexroth is investing at an all-time high in existing and new production sites as well as in research and development. At the end of 2022, Bosch Rexroth had around 32,100 employees worldwide, an increase of 3% compared to the previous year.

"Despite the difficult macroeconomic environment in 2022, we continued the strong growth momentum of Bosch Rexroth. We continue to focus on product technology research and development in the areas of hydraulics, electrification and factory automation, and enhance the competitiveness of our product portfolio through acquisitions to achieve future growth and meet the changing needs of our customers. Even in these difficult times, Bosch Rexroth has always been a reliable partner with an innovative spirit. Dr. Steffen Haack, CEO of Bosch Rexroth AG, said.

Sales & Orders: Despite the challenges, the company delivered strong overall sales and new orders

In fiscal 2022, Bosch Rexroth achieved sales of 7 billion euros, an increase of 14.1 percent, setting a new all-time record. In the last fiscal year, Bosch Rexroth generated sales of 6.2 billion euros, which has already returned to pre-pandemic levels. Bosch Rexroth increased sales by 849 million euros in fiscal 2022 compared to the 2019 sales figure.

The Americas region recorded the largest increase with sales of 1.4 billion euros, up 34.8 percent. Europe, excluding Germany, followed with sales of 2.4 billion euros, up 16.5 percent; In Germany, sales increased by 11.3 percent to 1.4 billion euros. Sales growth in the Asia/Africa/Australia region was relatively weak, with total sales of 1.8 billion euros. China is the largest market in the region and one of the largest sales markets for the entire Bosch Rexroth Group. As a result of the pandemic, sales in China fell by more than 9%. However, the increase in sales in other regions compensated for this problem and resulted in a new record.

In addition to real growth, exchange rate fluctuations and price fluctuations also have an impact on turnover. By understanding each other and working together with its customers, Bosch Rexroth has been able to effectively cope with the soaring costs of raw materials, energy, logistics and labor. But even so, the cost pressures on companies are still enormous.

In 2022, Bosch Rexroth generated around 7.3 billion euros in new orders, down 2.1 percent from the previous year. Bosch Rexroth has effectively coped with the challenges posed by factors such as pandemic policies and the conflict in Europe. However, the volume of new orders has fluctuated throughout the year, varying by region or technology.

R&D and global production network: Focus on customer interests and record investments

Bosch Rexroth has once again increased its investment in R&D and its global production network, focusing on innovation and efficient service for its customers.

In fiscal 2022, Bosch Rexroth invested around 388 million euros in research and development. This amount represents about 5.5% of total sales, which is also the highest in the company's history. Investments in focus areas include digitalization, eLION product platform for mobile machine electrification, ctrlX AUTOMATION for factory automation, ACTIVE Shuttle, autonomous mobile robot, and the H4U system software platform for industrial hydraulics. Bosch Rexroth will present 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 percent of sales, an increase of 53.1 percent compared to the previous year. This investment is also the highest in the last decade. Funds were invested in the modernization of existing production sites and the construction of new ones. Bosch Rexroth is currently building new plants in Queretaro (Mexico) and Charlotte (North Carolina, United States) 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 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 modernized the plant in all aspects. Outside of Germany, Bosch Rexroth invests the most in Turkey and China.

These measures contribute to the creation of a regionally balanced production network and sustainable development in order to further optimize the supply of products and services.

Acquisitions & Partnerships: Further enhance portfolio competitiveness and business growth potential

In 2022, Bosch Rexroth acquired a number of companies as well as company shares and established a number of joint ventures.

The largest acquisition was in the hydraulics business, which was announced in July 2022: HydraForce is a company focused on mechanical and solenoid cartridge valves, as well as hydraulic manifold manifolds, headquartered in the United States with approximately 2,100 employees. Since the completion of the acquisition in February 2023, the addition of HydraForce has significantly strengthened Bosch Rexroth's business in the field of compact hydraulics, especially in North America, and is poised for further growth in Asia.

In terms of factory automation, Israel-based Elmo Motion Control has been part of Bosch Rexroth's Automation & Electrical Control division since November. The company develops and produces high-end electric servo drives and drive controllers for industrial automation. These products will further complement the product portfolio based on the ctrlX AUTOMATION automation automation platform.

Bosch Rexle acquired a majority stake in Kassow Robots, a robotics brand from Denmark, in May. Kassow Robots develops and produces cobots for industrial applications.

In China, Bosch Rexroth has established two new companies, Lucta Bohua Automation (Shanghai) Co., Ltd. in the field of factory automation and Lotro Bowe Hydrauer Technology (Shanghai) Co., Ltd. in the field of mobile machinery and industrial hydraulics, to further grow its business by providing products that meet the needs of the market in specific markets.

Number of employees: The global team continues to grow

At the end of 2022, Bosch Rexroth had around 32,100 employees. The number of employees increased by about 1,000 from the previous year, an increase of about 3.2%. The team size has grown in all regions. The sectors with the highest demand for employees are factory automation and digitalization.

Looking ahead to 2023: Cautious optimism in a still challenging environment

"In 2022, I was impressed by the passion and passion of our global team, based on a strong corporate culture, to help our customers successfully overcome numerous difficulties. We are cautiously optimistic about 2023. Our new acquisitions complement our existing businesses and provide additional impetus to our sales growth. Holger von Hebel, Chief Financial Officer of Bosch Rexroth AG. There are still many challenges to contend with, including conflicts in Europe, issues with the supply of raw materials and logistics, and uncertainties in the international business environment. "That's why it's all the more important for us to continuously improve our business. For example, we are further strengthening our agile and results-oriented corporate culture through different measures. In addition, we are gradually driving the digital transformation of all parts of the company, while at the same time paying more attention to sustainability-related actions. von Hebel said.

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