Bosch - High Investments In The Future

• Bosch continues on growth course 2004: more sales, associates, and earnings

With high investments in property, plant, and equipment, as well as in research and development, the Bosch Group plans to continue its growth course. This was announced by Franz Fehrenbach, Chairman of the Bosch Board of Management, in Stuttgart today at the annual press conference on financial statements. Investments in property, plant, and equipment (2004: £1600 million) and expenditures on research and development (2004: £2900 million) are both to be increased this year once again. The focus of investment will be on further expanding the company’s facilities for advanced diesel systems, for semiconductors and sensors, and for products in the area of brake control technology. Despite the increasing internationalisation of the business, investments totaling some £700 thousand are planned for the company’s German locations alone. As Fehrenbach commented: "With these budgets, we demonstrate our determination in continued pursuit of our company’s long-term growth strategy."

For 2005, the Bosch Group expects worldwide sales growth of from three to five per cent in its current business. While the Bosch Group was able to achieve further growth in the first quarter of 2005, business has taken off less dynamically than in the previous year. For the rest of the year, Bosch expects economic activity to slow down, especially in the automotive industry. Gerhard Kümmel, the Bosch Board of Management member responsible for finances, pointed out the particular risk to operating result posed by the continuing increase in raw materials prices.

The Bosch Group is satisfied with business developments in 2004. Sales grew by 10 per cent to £27 billion (2003: £24.6 billion). The company was able to improve its income from ordinary business activity to £1700 million (2003: £1200 million). Good utilisation of production capacity and improved processes played a significant role here. All three business sectors contributed to the improvement in result. Worldwide, the number of associates in the Bosch Group came to some 242,400 at the end of 2004 and was thus roughly 11,000 higher than in the previous year.

In the UK the Bosch Group has 4670 associates, and in the business year 2004 achieved total consolidated sales of £1.3 billion, which represents 4.7% of total Group turnover and is the 5th largest contributor outside of Germany.