Bosch expects its sales to increase 4% this year as regions outside Europe will make up for the loss in the region.
Although first-quarter results were low due to the economic recession in Europe, Bosch expects earnings to increase significantly, but not enough to reach its EBIT margin target of 8% of revenue.
“We will seize our opportunities for growth, both in established areas of work and in setting up new areas of business,” Chief Executive Officer Volkmar Denner said in the statement.
Analysts predict that auto market in Europe will contract for the sixth consecutive year in 2013, heading towards a two-decade low. Bosch relies of the 2.7% global economic growth to offset the government’s austerity measures in Europe. Further sales and profit growth is expected in 2014 said Denner.
In 2012 EBIT fell 52% to 1.31 billion euro due to weak demand in the European market and net income increased 29% to 2.26 billion euro as the company sold a 5.4% stake in Japan’s auto parts maker Denso last November. Sales were up 1.9% to 52.5 billion euro thanks to currency gains. Bosch announced this year it will scale back investments to preserve cash and drops a $2.6 billion venture into solar-power equipment.