Annual financial results 2015; Bosch has record sales in North America
By Business Wire News
FARMINGTON HILLS, Mich.
Bosch, a leading global supplier of technology and services, ended its 2015 fiscal year with consolidated sales of $14 billion (12.7 billion euros) in North America. The full acquisition of two former fifty-fifty joint ventures, BSH Hausgeräte GmbH and Robert Bosch Automotive Steering GmbH, pushed sales up by $2.7 billion, or 24 percent in the U.S., Canada and Mexico. Bosch saw considerable organic growth as well: Sales calculated on a comparable basis increased by 6.7 percent. Revenue in the North American region represents 18 percent of the Bosch Group’s 2015 sales. The number of associates employed at Bosch in North America in 2015 grew to more than 31,000, rising 8 percent.
“2015 was a record-breaking year for North America,” said Mike Mansuetti, president of Robert Bosch LLC. “Bosch’s strategic objective – to deliver innovations for connected life in a responsible way – is accomplished through the strength of our company and the innovation of our associates.”
Solid growth for Bosch’s Mobility Solutions business sector
The Mobility Solutions business sector continued its growth with 2015 sales of $9.5 billion in North America, up from $8 billion in 2014, driven by the full acquisition of Robert Bosch Automotive Steering GmbH. Focused on automated, electrified and connected technology, this sector manufactures products for the automotive original equipment and aftermarket markets, off-highway applications, two-wheelers, shipping, rail transportation and more. Some of the highlights in 2015 were:
- Automated: Bosch completed the acquisition of its joint venture ZF Lenksysteme GmbH, forming Robert Bosch Automotive Steering. This division further expands Bosch capabilities in the area of automated driving, where it currently supplies key components that pave the path to the automated, accident-free road of the future.
- Connected: Bosch utilized its sensor technology and special software and suspension mechanics to develop its neoSense touchscreen display with haptic feedback. The feel of real buttons allows drivers to keep their eyes on the road while operating infotainment applications such as navigation, radio and smartphone functions. neoSense received an Innovation Award at CES 2016.
- Electrified: Bosch continues to develop a variety of powertrain options, evidenced by the fact that eight of the 2016 Ward’s 10 Best Engines list featured Bosch technologies on winning gasoline, diesel and electric engines. Bosch was also awarded a 2016 Automotive News PACE (Premier Automotive Suppliers’ Contributions to Excellence) Award for its innovative Linear Force Solenoid (LFS) technology, which enables transmission manufacturers to develop more efficient, high-speed transmissions that deliver more power without more weight.
Consumer Goods business sector achieves significant growth
In 2015, sales from the Consumer Goods business sector in North America doubled to $2.4 billion, with Bosch’s complete acquisition of the home appliances joint venture, now called BSH Hausgeräte GmbH. Power Tools and BSH Home Appliances both celebrated banner years in 2015, citing the pace of innovation and innovative strength as drivers of success. Power Tools and BSH had their best year ever, with growth across all brands.
The Bosch brand of home appliances has solidified its presence in the kitchen, gaining significant market share with innovative new cooking products. The brand’s accomplishments have been recognized by customers and the industry with numerous awards, including being ranked highest in customer satisfaction by J.D. Power in cooktops and dishwashers. Capping off the year, the Bosch B10CB80 and B11CB50 refrigeration models have been awarded the U.S. Environmental Protection Agency’s 2016 ENERGY STAR Emerging Technology Award.
Maintaining its reputation for engineering excellence, Bosch Power Tools introduced three pocket-size laser measures – the GLM 30, 35 and 40 – with greater functionality and range than previous models. Real-time measurements change instantly as the user moves the laser measure, just like a tape measure, while backlighting and computation of area is available with simple clicks of a button.
Stable revenue for Industrial Technology business sector
Sales for the Industrial Technology business sector, which includes the Packaging Technology division and Bosch Rexroth, remained at a level similar to the previous year due to the challenging situation in the market. The Packaging Technology division is one of the world’s leading providers of process and packaging solutions for a variety of industries. Bosch’s Drive and Control Technology division offers customized drive, control and actuator solutions for factory automation, systems construction and engineering, mobile machinery and commercial vehicles.
In 2015, Packaging Technology acquired Florida’s Osgood Industries Inc. and Georgia’s Kliklok-Woodman Corporation. Osgood represents a strengthening of Bosch’s engagement in the liquid food industry, while Kliklok-Woodman augments the company’s expertise in packaging machinery for snack food, bakery, frozen and prepared food, and cereal.
Bosch Rexroth revolutionized software engineering with Open Core Engineering. By bringing together the worlds of machine programming and IT, Open Core Engineering offers new freedom, flexibility and efficiency in automation processes. This integrated approach simplifies engineering workflows providing machine manufacturers and users with reduced costs, accelerated engineering and a high level of future readiness across machine lifecycles.
Additionally, Bosch also is a member of the Industrial Internet Consortium and its governing board, an organization dedicated to managing smart, hand-held tools in manufacturing, maintenance and industrial environments.
Continuing growth in Energy and Building Technology business sector
The Energy and Building Technology business sector saw strong growth in 2015, with sales of approximately $700 million, compared with roughly $500 million in 2014.
In 2015, Bosch completed its acquisition of Climatec LLC, a leading provider of energy efficiency, building automation, security and life-safety solutions for the U.S. market. Adding to Bosch’s previous product portfolio, Climatec’s products and technology allow the company to offer customers a complete portfolio of networked and efficient energy, building automation and security solutions.
At the 2016 International Builders’ Show, Bosch showcased its newest consumer product, the Bosch Control Smart Room Thermostat, to control temperature using a compatible smart device and mobile app.
In 2015, Bosch’s manufacturing facility in Anderson, South Carolina, celebrated the company’s first successful implementation of using smartwatches on the manufacturing line to optimize operator efficiency. The system of servers, programmable logic controllers (PLCs), smartphones and smartwatches provides a warning to line operators if a jam or other issue is going to occur, allowing the situation to be fixed before the line stops. This example shows how connected industry can increase productivity, optimize energy efficiency, and increase speed and flexibility.
The Bosch Research and Technology Center in Pittsburgh and Carnegie Mellon University launched a multi-year collaboration to test innovative ideas and the deployment of sensors to create a connected campus environment. The campus is a living laboratory with a focus on identifying and developing new use cases for automated building systems and relevant technology. With the use of Bosch’s environmental and occupancy sensors, the unnecessary heating and cooling of empty rooms is eliminated and first responders will have accurate information in the event of an emergency.
Continuous investment in North America
Continuing its focus on strategic growth in the region, in 2015 Bosch invested $455 million (410 million euros) in North America – up from $274 million (247 million euros) in the previous year.
Expanding regional footprint
Expansions previously announced include:
- Bosch Home Appliances plans to invest nearly $81 million during the next five years to expand its New Bern, North Carolina, facility. The site is expected to add 460 new jobs to increase its manufacturing operations and central distribution and call center.
- More than $84 million is being invested over four years in Bosch’s Automotive Steering site in Florence, Kentucky, to accommodate significant growth driven by customers’ orders. The expanded site will result in the creation of more than 200 jobs.
- In Mexico, Bosch initially invested $30 million to expand its Aguascalientes manufacturing facility. At present, 250 new jobs have been created. The investment allows for the production of the latest generation of safety systems, including antilock braking systems (ABS) and electronic stability program (ESP®). Production is to start this month.
- Bosch recently signed a property lease agreement for a greenfield site to establish a new site in Querétaro, Bajio region, in central Mexico. The company will invest approximately $80 million over the next four years to establish a 160,000-square-foot facility, which will begin assembly of automotive steering products in December 2017.
Ongoing commitment to community and environment
Bosch builds upon the legacy of its founder, Robert Bosch, through corporate social responsibility activities in four key areas – environment, products, associates and society – as well as the Bosch Community Fund, the company’s U.S.-based foundation.
- In 2015, the Bosch Community Fund awarded more than $3.5 million in grants to support science, technology, engineering and math (STEM) education and environmental sustainability in more than 28 communities across the U.S. Since being launched in 2011, the Bosch Community Fund has awarded more than $10 million in grants.
- Continuing its emphasis on environmental sustainability in all its operations, Bosch added two sites in Ontario, Canada – Welland and Burlington – to its list of facilities achieving zero waste to landfill status. To date, Bosch has nine sites in the region that have reached this status by implementing comprehensive plans to minimize waste, maximize recycling, reduce consumption and divert waste materials from landfills.
Bosch Group business outlook for 2016
Following a record year in 2015, the Bosch Group wants to continue its growth trend. The leading global supplier of technology and services expects worldwide sales to grow within an exchange rate-adjusted range of 3 to 5 percent in 2016. Speaking at the company’s annual press conference in Germany in April, Bosch CEO Volkmar Denner said: “We plan to grow not only with innovative products, but also with innovative services.” In the connectivity business, Bosch focuses on the “3S’s”: sensors, software, and services. The company is increasingly using connected services to build on its broad basis in the hardware business. As it does so, Bosch benefits not just from its technological diversification, but also from its wide-ranging industry and domain expertise. The newly created Bosch Global Service Solutions division, the recently established Bosch IoT Cloud, as well as the Bosch Smart Home System launched at the start of 2016 contribute to this strategy.
Having established a regional presence in 1906 in North America, the Bosch Group employs some 31,000 associates in more than 100 locations, as of December 31, 2015. In 2015, Bosch generated consolidated sales of $14 billion in the U.S., Canada and Mexico. For more information, visit www.boschusa.com, www.bosch.com.mx and www.bosch.ca.
The Bosch Group is a leading global supplier of technology and services. It employs roughly 375,000 associates worldwide (as of December 31, 2015). The company generated sales of $78.3 billion (70.6 billion euros) in 2015. Its operations are divided into four business sectors: Mobility Solutions, Industrial Technology, Consumer Goods, and Energy and Building Technology. 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 and sales network covers some 150 countries. The basis for the company’s future growth is its innovative strength. At 118 locations across the globe, Bosch employs 55,800 associates in research and development. The Bosch Group’s strategic objective is to deliver innovations for a connected life. Bosch improves quality of life worldwide with products and services that are innovative and spark enthusiasm. In short, Bosch creates technology that is “Invented for life.”
Exchange rate: 1 EUR = $1.1095
Robert Bosch LLC
Phone: +1 248-876-2046