TechnologyBosch's profit collapses - these are the reasons
SDA
31.1.2025 - 11:53
The Bosch conglomerate is struggling with the difficult economic situation. (symbolic image)
Keystone
E-mobility is faltering, the economy is sluggish - and Bosch is feeling the effects. The company is falling well short of its own targets.
Keystone-SDA
31.01.2025, 11:53
31.01.2025, 11:54
SDA
The difficult economic situation is hitting the automotive supplier and technology group Bosch hard. According to preliminary figures, earnings before interest and taxes (EBIT) slumped by a third to 3.2 billion euros last year, as the company announced in Gerlingen near Stuttgart. In 2023, Bosch still had an operating profit of 4.8 billion euros on its books.
Last year, sales fell by one percent to 90.5 billion euros. According to Bosch board of management member Stefan Hartung, the Group is therefore falling short of its targets. "Despite all our efforts, (...) we were unable to escape the economic realities," said the manager. We are not satisfied.
Hartung had already dampened expectations in the fall. Originally, Bosch wanted to grow by five to seven percent last year. The Swabians were also more optimistic about profits.
The weak growth of the global economy and "considerable market delays" in future-oriented fields had a negative impact on business. These include e-mobility, but also heat pumps, hydrogen and other sustainable technologies. The company is growing in these areas, but not as hoped.
In addition to the lack of sales, the continued high level of investment in these future-oriented areas also weighed on profits. However, according to CFO Markus Forschner, none of the Bosch divisions were in the red - despite some significant declines in sales.
Job cuts announced
At the end of 2024, the Bosch Group had 417,900 associates worldwide - 11,500 fewer than a year earlier. In Germany, the number of associates fell by 4,400 to 129,800 (minus 3.3 percent). For more than a year, the company had repeatedly announced plans to cut jobs in various areas. More than 12,000 jobs could be lost worldwide by the end of 2032.
Despite persistently difficult conditions, the Group aims to improve turnover and profits again in 2025. A concrete forecast is expected in May. Bosch will then also present its complete and audited annual figures.