Bosch Rexroth Reports Higher Sales in 2023, Challenges in 2024

Bosch Rexroth again recorded strong growth in fiscal year 2023. Sales rose by 7.5% to around 7.6 billion euros compared to the previous year. Growth was driven by company acquisitions, but also by positive regional developments, for example in India. However, due to the economic downturn, especially in its major markets, the company recorded a decline in order intake of 13.1% to around 6.4 billion euros. This weakens the outlook for the current financial year. Bosch Rexroth pursues a long-term growth strategy and has invested in new plants and buildings, for example in Germany, Slovenia and Mexico, in more modern production facilities and in research and development. At the end of 2023, Bosch Rexroth employed around 33,800 people worldwide. The 5.5% increase compared to the previous year was mainly due to the acquisition of HydraForce which was completed in 2023.

“In 2023, our global team managed the balancing act between initially high capacity utilization and then falling order intake. This demonstrates the strength of Bosch Rexroth: We have kept our company’s business on course. At the same time, customer satisfaction has increased again,” said Dr. Steffen Haack, CEO of Bosch Rexroth AG. The company has strengthened its offering to hydraulic and factory automation customers through innovations, acquisitions and partnerships and has consistently developed its global manufacturing network. Digitalization for customers and internal processes is being driven forward, and Bosch Rexroth is continuously strengthening its sustainability activities as well as integrating the acquired company HydraForce.

“Even in challenging times, we can rely on our strong corporate culture, which is geared to the success of our customers and of our company,” said Haack.

Sales: Increase through acquisitions

Sales rose nominally by 7.5% (around +530 million euros) to 7.6 billion euros. Currency effects had a negative impact of around 190 million euros, so that sales rose by 10.1% after adjusting for currency effects. Since 2023, HydraForce and ELMO Motion Control have also been part of the business of Bosch Rexroth and, like the business of Kassow Robots, the majority of which was acquired in 2022, now contribute to the higher sales.

The positive development in North and South America (+24%) was mainly influenced by the acquisition of HydraForce. Sales in Europe outside Germany grew by 9.3% and in Germany by 3.4%. In the Asia/Africa/Australia region, sales declined by 4.6%. There were very different developments in the region: The sharp decline in China, the largest market for Bosch Rexroth alongside the USA and Germany, could not be compensated for by the other countries in the Asia region. In India, however–where Bosch Rexroth has been active for 50 years–sales were around 30% higher than in the previous year.

Incoming orders: Decline due to weak economy since second half of 2023

Order intake in 2023 amounted to around 6.4 billion euros. This is about 950 million euros, or 13.1%, less than in the previous year when the second highest value in the company’s history was achieved. The weak economy and ongoing uncertainty in most regions of the world have led to a significantly lower volume in new orders, especially since mid-2023. Bosch Rexroth expects order intake to recover in the second half of 2024.

Outlook for 2024: Improving competitiveness in a difficult environment

“We expect that the current year will continue to be marked by the weak economy and major uncertainties in the economic and political environment,” said Holger von Hebel, CFO of Bosch Rexroth AG. In view of these conditions, increased material, energy, logistics and labor costs as well as the significant decline in new orders, cost pressure remains very high. Therefore, the company continuously takes measures to increase competitiveness; for example, greater automation of processes or the continuous further development and better balancing of the global manufacturing network. “We proceed decisively, but with care. We are thus able to stand strong in the currently challenging environment and at the same time we invest and innovate to be prepared for the next upswing,” added von Hebel.

Investments and innovations underpin growth strategy

As part of its long-term growth strategy, Bosch Rexroth invested around 460 million euros in research and development in 2023. This marks an increase of 18.5% compared to the previous year. More than 6% of sales go into this area, again more than the industry average. These investments strengthen the company’s leading position in hydraulics and drive growth in factory automation–one of Bosch’s strategic growth areas.

In 2023, investments in new plants, buildings, machinery and tools amounted to around 390 million euros. With the newly opened plants in Querétaro, Mexico, as well as in Brnik, Slovenia, Bosch Rexroth continues to strengthen and further balance the global manufacturing network and to consolidate local supply chains. At the headquarters in Lohr, for example, the modernization of the foundry was largely completed and a new customer and innovation center was opened. Further centers of this kind were established in Warsaw, Poland, and Budapest, Hungary.

Examples of innovations from Bosch Rexroth include solutions for the compression and handling of hydrogen, the ctrlX OS operating system open to the entire automation market, for which renowned partners such as Dell Technologies, congatec or Nokia could be won, the new eOC-capable (electronic open circuit) A10VO series 60 axial piston pump covering the medium pressure range with which mobile machines can be used even in more versatile and flexible ways, the myBODAS digital collaboration platform for efficient collaboration between users and BODAS experts to accelerate software development for off-highway vehicles, as well as comprehensive automation solutions for the entire value stream in battery production–from electrode and cell production to battery module and pack assembly to end-of-line testing and recycling. With its battery recycling solution, Bosch Rexroth has been nominated for the renowned Hermes Award, which will be presented at Hannover Messe. From 22 to 26 April, the company will be presenting many of its innovations there.

Acquisitions and partnerships: Strengthening the portfolio and potential for further growth

The acquisition of the US-based company HydraForce with around 2,100 associates worldwide was completed in spring 2023. HydraForce specializes in mechanical and electrical screw-in valves and control blocks. In China, Bosch Rexroth has entered into agreements with local partners to establish joint ventures in the areas of electrification of off-highway machines and automation. They will develop, manufacture and market specific products for this region.

Associates: team grew significantly, mainly due to acquisition in the United States

At the end of 2023, Bosch Rexroth employed around 33,800 people worldwide. That is 5.5% or about 1,800 more than in the previous year. With the acquisition of HydraForce, the North/South America region recorded the strongest growth (a total of +40% or around 1,300 associates, respectively). After two years of job creation, the number of associates in Germany declined slightly also due to the partial relocation of activities already announced in 2022 (by 2.8% or around 400). Around 42% of all Bosch Rexroth associates work in Germany.