The crises in the automotive industry and in the mechanical engineering sector, as well as the weak It has been developing a centered cost reduction program, among other things, in a plan to cut more than 12,000 jobs worldwide. Despite this, the technological group reduced its operational benefits in 2024.
According to the preliminary figures presented this Friday, the profits before taxes fell up to 3.2 billion euros last year, 33% less than in 2023 ,. The profitability rate fell almost two percentage points from 5.3% to 3.5%, thus moving more and more from the 7% target that the company needs in the long term for its financial independence, something that it hopes to achieve in 2026 , despite everything. Meanwhile, sales fell 1% to 90,500 million euros.
“I admit it: it was easier to be optimistic,” said the president of the Bosch Board of Directors, Stefan Hartung, during the. The manager has recognized that the group is not meeting the objectives: “Despite all our efforts we have not been able to escape the economic reality, but compared to the rest of the industry, our performance was respectable.” “The automotive industry is undergoing a growing competitive pressure, especially by China, as well as excess capacity and regulatory uncertainties,” he said.
For Hartung, the 2024 accounts “reflect an unpleasant reality and show the great uncertainty that currently exists between customers and consumers.” “The demand is stagnating not only in the automotive sector, but also in industrial and construction technology, as well as in appliances and electric tools,” he said to also influence that it is “unusual” simultaneous of relevant growth in all its business areas.
According to the manager, Bosch’s business development was negatively affected not only by the weak world economic growth, but also for “important delays” in the area of, as well as heat pumps, hydrogen and other sustainable technologies, where growth is not being expected. In addition to the lack of sales, the high level of precise investment in these areas also affected the benefits. But the financial director of Bosch, Markus Forschner, has remarked that none of the company’s divisions is in red numbers, despite a strong fall in income in some cases.
In Europe things were particularly bad due to the weak demand, investment and containment of consumption. Meanwhile, in the case of the US, Forschner has pointed out that moderate growth is expected despite the difficult business environment.
On the possible tariffs that the US president wants to apply, Donald Trump, Bosch says he is preparing for all possible scenarios. “Everything I have seen in the US is fundamentally aimed at maximizing business. That is why I trust that nothing will happen to the detriment of the American population, ”said Forschner. Bosch wants to continue with his investments in the US – “We are too small in North America,” said the financial director – where almost a fifth of his income comes from. Despite all these challenges, the German group maintains “ambitious commercial objectives”, although it does not expect a significant improvement until 2026 due to world uncertainty.
In this context, Bosch hopes that the future German government, which will be elected in the February 23 elections, re -pay more attention to the German economy and in particular to the industry. In his opinion, a “better business environment” in the country is necessary and also work to achieve a “stronger” Europe, which knows the advantages of a common market of about 400 million people better.
The figures published by Bosch arrive a few months after the company announced its plans to suppress more than in the coming years, of which about 8,000 will be in Germany. In total, the technological giant has 417,900 workers. Hartung has made it clear that this restructuring can affect more workers: “Nobody likes to cut jobs, but we want to prepare our company for the future. And, unfortunately, in view of the current market situation and the intensification of competitive pressure, this objective cannot be achieved without effective adjustments and clear priorities, ”he said.
