Although in 2014 expects further heavy loses in its photovoltaic business, Bosch’s CEO Volkmar Denner is still confident that his strategy will lead to success.
The auto parts supplier expects to see in 2014 the first successes of the fundamental realignment its undergoing now and wants to continue the course in 2014.
“We are on the right track. In spite of the sluggish world economic situation, the difficult situation in Europe and negative currency effects, we will increase in 2013 our sales of between two and three percent. We are also improving our earnings,” said a message from Bosch CEO Volkmar Denner.
The Bosch Group, whose products range from refrigerators, packaging and heating equipment to diesel direct injection and semiconductors, for years has been suffering from inefficiency and lack of profitability.
In the past financial year, the Group achieved an operating margin of just 2.5 % on a turnover of 52.5 billion euros. The Car Technology Division totaled 31 billion euros and showed an operating margin of 4.5 %. The industry average for suppliers is around five to six percent.
The automotive technology division plans to increase the current year sales by around five percent, which would grow faster than the global car production. On the income side, the division expects a pre-tax return of around six percent this year.