Bosch Group Increases Sales 10 Percent Worldwide

Bosch on Course for Growth in All Markets

FARMINGTON HILLS, Mich., Jan. 27 -- The Bosch Group increased its 2004 worldwide sales by 10 percent, reaching $49.7 billion (40 billion euros). Growth was demonstrated in all business sectors, with dynamic activity in the Automotive Technology and Industrial Technology sectors.

"All in all, the fiscal year 2004 was a good one for us," said Franz Fehrenbach, chairman of the board of management, Robert Bosch GmbH. "The Bosch Group's wide global presence meant that it was able to profit from the very favorable economic conditions worldwide. Equally important, the high level of up-front investment made by Bosch in previous years is now beginning to pay off."

Globally, Automotive Technology revenue rose 7 percent in 2004, totaling $31.4 billion (25.3 billion euros) and establishing Bosch as the world's largest automotive supplier in terms of sales. However, Fehrenbach emphasized that, "Size alone is not what counts for us. We are far more interested in innovative strength, competitiveness, customer focus and internationalism."

In Industrial Technology, sales increased by 21 percent, reaching $6.5 billion (5.2 billion euros). Key growth contributors were the full-year inclusion of the 2003 acquisition of Buderus AG Castings and Special Steel divisions and the pro-rated inclusion of packaging machinery manufacturer Sigpack, acquired in 2004. After adjusting for consolidation effects, the growth rate was 9 percent.

With a full-year inclusion of Buderus heating systems, the Consumer Goods and Building Technology business sector achieved a 13 percent growth rate in 2004, totaling $11.8 billion (9.5 billion euros). Adjusting for consolidation effects, growth was almost 6 percent.

The Bosch Group came one step closer to its minimum target of 7 percent return on sales. The result, just over 6 percent of sales compared to 5 percent in 2003, is attributed to better plant capacity utilization as a result of positive economic developments, significant improvements in business processes and technology investments made in previous years, especially in modern diesel systems.

Investment in research and development increased from $3.4 billion (2.7 billion euros) in 2003 to approximately $3.7 billion (3 billion euros) in 2004, comprising about 7.5 percent of total sales. Worldwide, the number of associates increased by nearly 11,000 to presently 242,500. Most of the employment growth took place outside of Germany.

Additionally, the Bosch Group focused more strongly on growth regions, including the Americas. In 2004, Bosch revenue in North America grew 17 percent, resulting in sales surpassing $7.5 billion.

In 2005, the Bosch Group Board of Management expects favorable business developments. However, Fehrenbach notes some caution. "We should by no means take for granted that the good progress we made in 2004 will continue in a straight line," he said. Fehrenbach points to the global economic slowdown, increased raw material prices and the strong euro as reasons for cautious optimism in 2005.

In North America, the Bosch Group manufactures and markets automotive original equipment and aftermarket products, industrial equipment, power tools and accessories, security technology and household appliances. Bosch employs more than 23,000 associates in facilities across North America and reported sales estimated at nearly $8 billion in 2004. For more information, visit http://www.bosch.us/ .