STUTTGART and GERLINGEN, Germany -- The Bosch Group is reporting that it has returned to its growth course, and has already regained the level of sales seen in 2007, before the recent financial crisis.

In fiscal 2010, according to preliminary figures, this global supplier of technology and services generated sales of 47.3 billion euros (approximately $64.8 USD), 24 percent more than in the previous year (2009: 38.2 billion euros; $52.3 billion USD).

"This is the highest level of annual sales in the 125 years of our company's history," said Franz Fehrenbach, the chairman of the board of management of Robert Bosch GmbH.

Asia Pacific sales pass the 10-billion-euro mark for the first time
The company said the main drivers of this upswing are the global economic recovery, the steep rise in global automotive production and increased demand in mechanical engineering. In addition, significant progress has been made in restructuring loss-making areas, and the profit threshold has been regained in North America.

In Asia Pacific, Bosch achieved a nominal year-on-year sales increase of 42 percent, generating sales of more than 10 billion euros ($13.7 billion) in this region for the first time. In South America, the company was able to grow 36 percent. In addition, North American sales increased by 27 percent and European sales by 16 percent, albeit from an extremely disappointing prior-year level.

"In Europe, it will likely be 2012 or 2013 before we regain the pre-crisis level of 2007," Fehrenbach said. "We continue to benefit from the steady growth of the Asian and South American emerging markets, where we have been expanding our presence for many years now. This has enabled us to keep our core team on board during the recession, also in Europe and Germany – a fact that is currently all too often overlooked," Fehrenbach said.

Double-digit growth for all business sectors
Last year, in line with the sectoral and regional recovery, all three business sectors grew significantly, according to Bosch. Automotive Technology recorded the highest sales growth – growth of 29 percent to some 28 billion euros ($38.4 billion) vs. 21.7 billion euros in the previous year. Industrial Technology was also able to boost its sales considerably. From their prior-year level of 5.1 billion euros ($6.9 billion), they rose by more than 27 percent to over 6.5 billion euros ($8.9 billion). More than 500 million euros ($685 million) of this increase is due to the first-time consolidation of the majority shareholding in aleo solar AG, which Bosch acquired at the end of 2009. Consumer Goods and Building Technology, which was less affected by the recession of 2008 and 2009, discloses significant growth of roughly 10 percent to some 12.5 billion euros ($17 billion) vs. the prior year's 11.3 billion euros.

Headcount rises by some 12,800 in 2010
In the course of 2010, Bosch Group headcount worldwide rose by 4.7 percent, to some 283,500 associates. In line with market developments, the rise in associate numbers was strongest in Asia Pacific, where roughly 7,500 new jobs were created. In Germany, headcount rose by roughly 1,900 associates to more than 113,600.

"If this pace of growth continues, Bosch will employ some 300,000 people by the end of 2011. We are looking for more than 9,000 university graduates alone, 1,200 of them in Germany," Fehrenbach noted.

Associates receive high performance-related bonus plus an anniversary bonus
Owing to the good result for fiscal 2010, the company will pay non-exempt associates in Germany a performance-related bonus amounting to roughly half a month's salary. This is the highest bonus Bosch has paid for many years. In addition, all associates worldwide will receive a one-off loyalty bonus to mark the company's 125th anniversary. The amount of the bonus will depend on their years of service. The total bill for the anniversary bonus comes to some 180 million euros.

Research, development, and capital expenditure increased once again
In 2010, Bosch also increased its research and development spending by 11 percent. R&D expenditure was roughly 4 billion euros (previous year: 3.6 billion euros). Nearly half of this was invested in new products and services that conserve resources and protect the environment. The high capital expenditure of 2.4 billion euros (previous year 1.9 billion euros) went toward projects such as the ramp-up of a solar-cell manufacturing facility in Arnstadt, Germany. In South Korea, a manufacturing facility run together with Samsung SDI to produce battery cells for hybrid and electric vehicles went into operation, a new research center was inaugurated in Singapore, and the foundation stone for a new multi-purpose proving ground was laid in China.

Global upswing expected to continue in 2011
For 2011, Bosch expects the global upswing to continue. However, it will lose some of its pace, resulting in a global growth figure of some 3.5 percent. The greatest impetus will continue to come from the emerging markets, with more than 6 percent growth on average. The European economy, by contrast, will grow by just 1 to 2 percent, although Bosch expects growth of at least 2 percent for Germany. For the U.S. as well, the company is increasingly confident. Due to increased exports, higher employment, and greater domestic demand, Bosch expects to see growth of more than 3 percent in the United States. The company sees the main risks in the consequences of the financial and economic crisis, which have not yet been overcome, as well as in the development of exchange rates. "Europe now has to show solidarity. But aid cannot be given to member states unconditionally," Fehrenbach said.

In 2011, the Bosch Group is celebrating the 150th anniversary of its founder's birth, its own 125th anniversary and the 75th anniversary of diesel technology for passenger cars. The company says there will be many celebrations worldwide, including some 200 events for associates. Economically, the company expects to see sales growth and a positive result repeated in the new fiscal year, in all business sectors.

"In 2011, Bosch sales will surpass the 50-billion-euro mark in sales for the first time," Fehrenbach said, "always assuming that there are no unexpected downturns in the global economy."