Profit Decline at Bosch: Mobility Division Remains Stable Despite E-Car Downturn
Bosch fell short of its targets due to economic conditions. However, the "Mobility" segment remained stable despite a downturn in the electric car market.
In 2024, preliminary figures show signs of a slowdown in business development at Bosch. The picture shows one of the company's brake test vehicles.
(Image: Bosch)
According to its preliminary figures published today in Gerlingen near Stuttgart, the technology company Bosch, one of the largest suppliers to the automotive industry, made a third less profit before interest and tax (EBIT) last year. Earnings fell to 3.2 billion euros, while the company was still able to report an operating profit of 4.8 billion euros in 2023. Bosch CEO Stefan Hartung tried to put this crash into perspective and said that his company "was still able to hold its own respectably compared to the rest of the industry", citing acquisitions and sales as well as structural adjustments to strengthen competitiveness and growth as internal reasons.
At the same time, Hartung admits that Bosch has missed its targets. The company is not satisfied and has not achieved the growth rate of five to seven percent targeted for 2024. Sales fell by one percent to 90.5 billion euros in 2024. However, according to CFO Markus Forschner, none of Bosch's divisions made losses.
"Mobility" held up, heating market performed poorly
Forschner explained that Bosch was unable to compensate for the global economic downturn despite its broad positioning across many business areas. "Overall, 2024 was characterized by the rare constellation that all of our focus markets performed poorly at the same time". With sales of EUR 55.9 billion, the Mobility business division remained roughly at the previous year's level, with sales also remaining virtually unchanged after adjusting for exchange rate effects. In the "Industrial Technology" business segment, sales fell by 13 percent to 6.5 billion euros because the mechanical engineering sector in Europe, China and America weakened at the same time. "Consumer Goods" improved by two percent to 20.3 billion euros, while "Energy and Building Technology" lost three percent to 7.5 billion euros. The heating market in Europe in particular performed poorly for Bosch.
(Image: Bosch)
In Europe, sales fell by five percent to 44.5 billion euros, in North America they grew by five percent to 16 billion euros, South America was nominally six percent better at 1.8 billion euros, adjusted for exchange rate effects. Asia-Pacific came in at 28.1 billion euros, up one percent in nominal terms and three percent adjusted for exchange rate effects.
Significant market delays in e-mobility
According to Bosch, "considerable market delays" in the areas of sustainable technologies such as e-mobility, heat pumps and hydrogen, where faster growth had been expected, added to the inhibited growth of the global economy.
At the turn of the year, Bosch employed around 417,900 associates worldwide, a decrease of just under three percent or 11,500 compared to the previous year. In Germany, too, around three percent or 4,400 fewer people worked at Bosch in 2024; according to the company, there are now just over 129,800. Bosch has been planning job cuts in various areas for over a year, according to which more than 12,000 people could be affected worldwide by the end of 2032, with a good 7,000 in Germany.
Bosch plans to present its complete and audited annual figures in May. The company is preparing for "moderate" growth in the global economy and does not expect a slight upturn until 2026. In 2025, this is expected to amount to only two and a half percent.
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(fpi)