Due to structural factors and the pandemic, Bosch Rexroth recorded a decline in sales of almost 17% in the 2020 financial year compared to the record level of 2019, but remains profitable. However, the path back to pre-crisis levels will take longer than the crisis itself. Extensive investments are planned for 2021, including at German locations.

Despite adverse conditions with a combination of an economic downturn and the pandemic, Bosch Rexroth had a successful 2020 financial year. This was due in particular to the company's adaptability and cost flexibility. "We are proud of our global team. They have made a very special effort," says Rolf Najork, Member of the Board of Management of Robert Bosch GmbH responsible for Industrial Technology and Chairman of the Board of Management of Bosch Rexroth AG. "With their flexibility and impressive stamina, our associates have worked for our success on site with our customers, at our locations and on the move."

Close customer contacts even during the pandemic

Bosch Rexroth is maintaining close contact with its customers and partners worldwide even in times of the pandemic and is accelerating digitalization in this area: new chat functions on the website make it easier to get in touch, fully digital events are replacing cancelled trade fairs, and training courses are being offered online. Service specialists support customers and users with remote maintenance, and digital support often replaces on-site visits when commissioning drive and automation solutions. Despite the strained supply chains during the first lockdown, Bosch Rexroth maintained deliveries in close cooperation with customers and partners and avoided customer downtimes.

Hydraulics activities a strong pillar

In the 2020 financial year, developments varied from region to region: In Europe, where Bosch Rexroth generated more than half of its sales, and in North and South America, sales fell by around 20 percent in 2020. Supported by strong business in China, however, the decline in the Asia-Pacific/Africa region was limited to just under five percent.

Hydraulics activities have contributed to the stabilization of the business, especially since the second half of 2020. With this technology, Bosch Rexroth offers its customers a combination of unique power density and digital connectivity. Incoming orders in the area of factory automation are also picking up. The new automation platform ctrlX Automation helps users to operate more flexibly in the factory of the future, to commission systems more quickly and to manufacture very different quantities and variants of products economically.

Environment remains challenging in 2021

Thanks to the increase in incoming orders since the second half of 2020, Bosch Rexroth is cautiously optimistic about the current financial year. Risks exist due to the further development of the pandemic, possible changes in individual markets and structural changes in the automotive sector. "The recovery will take longer than the crisis itself," Najork is convinced. "We are equipped for this path with our balanced strategy of change: We are taking long-term structural developments into account while increasing our flexibility for economic fluctuations."

The international production network plays a key role in Bosch Rexroth's adaptability. The company is continuously developing its capacity and positioning in line with the market and customer requirements. Investments are therefore either made in the sense of a "local for local" approach close to the customer or capacities are bundled where it is economically necessary.

Bosch Rexroth was also profitable in the 2020 financial year. Despite the decline in sales, the company continued to invest with a view to the future. In 2020, Bosch Rexroth invested a total of around 100 million euros in its 47 production locations worldwide, twelve of which are in Germany.

The competitiveness of the German locations was strengthened with around 45 million euros, for example with the second construction phase of the customer and innovation center in Ulm, where around 250 specialists will work on technically pioneering and sustainable solutions across all divisions. The other building will house a model factory for Industry 4.0 solutions, modern offices, laboratories and test stands for the electrification of mobile machinery. Around 28 million euros went to China, in particular for the expansion of the plant in Xian as a center for factory automation in Asia.

The plan for 2021 is to significantly increase investments again. Significant investments are also planned at German locations.

Bosch Rexroth maintained its research and development (R&D) expenditure at a high level in 2020 at around 326 million euros (previous year: approx. 348). The share of R&D expenditure in sales thus rose from 5.6% to 6.3% compared to the previous year.