Despite a 17% drop in sales compared to the record year 2019, Bosch Rexroth remains profitable in the 2020 financial year. An increase in incoming orders since mid-2020 has given the company confidence and it is planning extensive investments for 2021, including at its German locations. Rolf Najork, Member of the Board of Management of Robert Bosch, sees the fact that the automation specialist has defied the difficult conditions, a combination of economic downturn and pandemic, as a credit to its associates: "We are proud of our global team. They have made a very special effort. 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. Even in difficult times, we always focus on our customers. Bosch Rexroth remains a stable partner in stationary and mobile hydraulics, factory automation and engineering."

The company reported sales of €5.2 billion in 2020 (2019: €6.2 billion), while incoming orders of €5.2 billion were slightly lower than in 2019 (€5.4 billion). The company reported expenditure on research and development (R&D) for 2020 at around 326 million euros (previous year: 348 million euros), although its share of turnover increased from 5.6% to 6.3% compared to the previous year.

Rising order intake from mid-2020

Incoming orders have been on the rise since the second half of 2020, giving the company a cautiously confident outlook for the current financial year. Nevertheless, risks remain due to the further development of the pandemic, possible changes in individual markets and structural changes in the automotive sector. Najork: "The recovery will take longer than the crisis itself. We are prepared 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."

Digitalization of customer contact

In order to maintain contact with users and customers, Bosch Rexroth is consistently focusing on digitalization. For example, the company established new chat functions on its website, offered digital events and training courses and supported users with remote maintenance and digital support for commissioning drive and automation solutions.

Hydraulics and factory automation on the upswing

Bosch Rexroth generated more than half of its sales in Europe in the 2020 financial year. In North and South America, sales fell by around 20% in 2020. Supported by strong business in China, however, the decline in the Asia-Pacific/Africa region was limited to just under 5%.

The hydraulics business has stabilized, especially since the second half of 2020. In terms of technology, Bosch Rexroth relies on a combination of high force 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.

Further investments planned

Last year, the company invested around 100 million euros in its 47 production sites worldwide, twelve of which are in Germany. The competitiveness of the German sites was strengthened with around EUR 45 million, for example with the second construction phase of the Customer and Innovation Center in Ulm, where around 250 specialists will work across all divisions. The additional 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.

Bosch Rexroth is planning further investments. These will either be carried out close to customers in line with a "local for local" approach or capacities will be bundled where economically necessary. Significant investments are also planned at German locations.