Bosch Rexroth CEO has upbeat outlook

Despite continuing difficulties in the U.S. economy Bosch Rexroth Corp. President and CEO Berend Bracht today announced a 3.1% growth in the company’s U.S. dollar denominated sales in the Americas, and projected double-digit growth for the company overall in 2008.

04/22/2008


Hoffman Estates, IL — Despite continuing difficulties in the U.S. economy Bosch Rexroth Corporation President and CEO Berend Bracht today announced a 3.1% growth in the company’s U.S. dollar denominated sales in the Americas, and projected double-digit growth for the company overall in 2008. Much of the growth resulted from the company’s efforts activities in the alternative energy sector, including components and systems for wind, solar, and other technologies for tapping alternative energy sources. Results for 2007 were even better outside of the U.S. Bracht cited China and


Bosch Rexroth employee testing an electric controller. Source: Bosch Rexroth


Bracht dismissed the negative news that euro-denominated
Bracht presented graphs of overall company sales showing steady sales growth in euros averaging approximately 8% since 2003, with an accumulated gain of 48.1% resulting in a sales level of€5.36B.
“Asia proved to be one of Bosch Rexroth's key growth drivers again in 2007,” Bracht continued, “with a 13% increase in sales — more than doubling the volume of business in this region since 2002. In 2007, China contributed the lion's share of our Asian sales — enjoying almost a 30 percent rise in sales — followed by Japan. India, which is beginning to resemble the development in China a few years ago, enjoyed a 20% growth.”
Europe was another highlight in Bosch-Rexroth’s financial picture. Sales were up 8.3 percent in Germany, while the rest of Europe grew at 14 percent. “…Good news [also] came from South America,” Bracht pointed out, “where we achieved a phenomenal 18.5-percent increase in sales, making it one of the company’s fastest-growing regions.”
Technology fields contributed to the company’s growth to varying degrees. Key growth drivers included mobile hydraulics, industrial hydraulics, large gear systems for wind farms, and electric drives and controls. In factory automation, the company increased sales in machine tool, woodworking, and packaging industries.
Bracht attributed much of the company’s success to ongoing technology development programs. “Our company's growth is driven by our ability to innovate. We invested $343 million in research and development in 2007, once again well above the industry average.”
Responding to global increases in fuel costs, Bosch Rexroth is involved in several energy-conservation developments. Many are already in standard production, including projects reducing fuel consumption in mobile machinery, increasing efficiency in factory automation, and upgrading plants for generating renewable energy.
Bracht does not expect the economic situation in the U.S. to improve in 2008. Nonetheless, he sees excellent growth opportunities in the renewable energy, semiconductor, and medical sectors. “Even in our traditional markets,” he points out, “U.S. companies are increasing exports despite weak domestic activity.”
“I am convinced that 2008 will be another positive, successful year for Bosch Rexroth,” he concluded. “We are well positioned to take advantage of worldwide growth opportunities.”
C.G. Masi , senior editor
Control Engineering News Desk
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