• Bosch Group achieves strong growth of more than five percent worldwide reaching 43.7 billion euros in 2006
• Bosch China sales grew by 30 percent to 1.3 billion euros in 2006
• In 2006, Bosch invested in China 138 million euros in the Automotive, Industrial and Consumer Sectors
• In 2006, 3300 new employees joined Bosch at various locations in China

Shanghai - The Bosch Group has reached its growth target for 2006. Global sales grew by more than five percent to 43.7 billion euros. Bosch's growth drivers during 2006 were the Asia Pacific region, the Consumer Goods, Building Technology and the Industrial Technology business sectors.

Bosch Group: Long-term strategy is paying off

“Our long-term strategy is paying off. We have been able to significantly expand our presence in Asia, and to strongly grow our business outside of automotive technology,” said Franz Fehrenbach, Chairman of the Bosch Board of Management, at a press briefing in February in Stuttgart, Germany disclosing preliminary 2006 financial figures.

All Bosch Group business sectors made a positive contribution to growth in 2006. The Consumer Goods and Building Technology business sector recorded the highest growth, with sales growing roughly 10 percent to 11 billion euros. The Industrial Technology business sector also experienced positive development and strong growth. The Automotive Technology business sector, the main pillar of business at Bosch with a 62 percent share of total sales, grew by 3.5 percent to 27.2 billion euros.

Research and Development expenditures continued to remain high. In 2006, Bosch spent 3.3 billion euros on R&D or the equivalent of 7.6 percent of sales.

Important business areas continue on a growth course

Household Appliances, Power Tools, Thermo Technology and Security Systems business units all made a strong contribution to the 2006 results.

The Industrial Technology business sector also developed positively in the past year. Bosch Rexroth grew more than 7 percent mainly from Europe, especially Germany, and also from the Asia Pacific region. “The emerging Asian market, especially China, continues to contribute to Bosch's strong overall growth. The strategic steps and operational improvements that were taken during the past few years are reflected in the Asia Pacific revenue growth of 13 percent. The Asia Pacific Region accounted for 16 percent of the Bosch Group revenue in 2006,” said Dr. Rudolf Colm, member of Bosch's Board of Management and responsible for the coordination of company activities in Asia-Pacific.

Continued expansion and commitment in China

Bosch continued to expand and grow in China at a rapid pace by generating revenues of 1.3 billion euros in 2006 including all consolidated entities, which is a growth of 30 percent compared to 2005. Bosch now employs 13,800 employees in China. In 2006 alone 3300 new employees joined Bosch at various locations in China.*

Mainly for the expansion of current manufacturing sites Bosch invested in 2006 in China 88 million euros in the Automotive sector, 29 million euros in the Industrial sector and 21 million euros in the Consumer sector. Thus, Bosch in 2006 invested 138 million euros in the Automotive, Industrial and the Consumer sectors in China.

Looking back at Bosch China achievements in 2006, Peter Pang, President of Bosch ( China), said: “In 2006 Bosch has laid a solid foundation to continue our commitment of fulfilling our Corporate Social Responsibility. In 2007 Bosch will continue efforts in Environment Protection, Energy Saving, Road Safety, and in Education”.

About the Bosch Group

The Bosch Group is a leading global supplier of technology and services. In the areas of automotive and industrial technology, consumer goods, and building technology, some 280,000 associates generated sales of 45.1 billion euros in fiscal 2008. The Bosch Group comprises Robert Bosch GmbH and its more than 300 subsidiaries and regional companies in over 60 countries. If its sales and service partners are included, then Bosch is represented in roughly 150 countries. This worldwide development, manufacturing, and sales network is the foundation for further growth. Each year, Bosch spends more than 3.5 billion euros, or eight percent of its sales revenue, for research and development, and applies for over 3,000 patents worldwide. With all its products and services, Bosch enhances the quality of life by providing solutions which are both innovative and beneficial.

The company was set up in Stuttgart in 1886 by Robert Bosch (1861-1942) as “Workshop for Precision Mechanics and Electrical Engineering.” The special ownership structure of Robert Bosch GmbH guarantees the entrepreneurial freedom of the Bosch Group, making it possible for the company to plan over the long term and to undertake significant up-front investments in the safeguarding of its future. Ninety-two percent of the share capital of Robert Bosch GmbH is held by Robert Bosch Stiftung GmbH, a charitable foundation. The majority of voting rights are held by Robert Bosch Industrietreuhand KG, an industrial trust. The entrepreneurial ownership functions are carried out by the trust. The remaining shares are held by the Bosch family and by Robert Bosch GmbH.

About Bosch in China

Bosch founded its first trading office in China as early as 1909. In 1926, the first car service workshop opened in Shanghai. Today, all Bosch business sectors are present in China: Automotive Technology, Industrial Technology and Consumer Goods and Building Technology. The company operates 44 legal entities in China and has a holding company in Shanghai. Consolidated sales in China reached 2.2 billion euros in 2008. Some 20,200 Bosch associates in all legal entities and facilities are committed to bringing to Chinese customers the latest technology as well as the most reliable services to help improve their quality of life.

For more information on Bosch, please visit www.bosch.com.cn

* Based on International Financial Reporting Standards (IFRS)

News sourc: Bosch China
Publish date: March 2007