Bosch Taiwan, the local branch of Germany’s top technology and services supplier, yesterday said it expects business to slow down this year, from a double-digit percentage increase last year, as economic uncertainty mounts in Taiwan and abroad.
Bosch Taiwan shared its business outlook after ending last year with NT$27.3 billion (US$924.6 million) in consolidated sales, representing a 17 percent increase from a year earlier, it said.
That the company has achieved double-digit percentage sales growth for the past five years shows the strength and opportunity of the local market, especially for mobility solutions and consumer goods, Bosch Taiwan managing director Andreas Schmidt said.
Photo: AFP
For this year, the company offered a subdued forecast due to uncertain economic situations, he said.
However, the company will continue to provide innovative products and solutions, despite the challenges ahead, he said.
Bosch Taiwan said it plans to enlarge its workforce this year from 504 associates last year.
The company’s mobility solutions business sector posted steady growth last year, making it the major contributor to the company’s sales revenue, Schmidt said, adding that sales and customer demand for original equipment picked up as the penetration rate of motorcycle anti-lock brake systems gained momentum.
As for the automotive aftermarket, Bosch Taiwan expanded its alliance of Bosch auto services by reinforcing its value propositions, such as consultancy services to workshop owners, he said.
The industrial technology business sector also had stable growth in the wake of a recovery of the machine tool industry, the company said.
The growth was mainly fueled by strong demand from the semiconductor industry and factory automation, it added.
Along with a surge in semiconductor production, sales of rails and ball screws also rose, it said.
Demand for factory automation and smart machinery also lent support to the sales growth, it added.
The multinational conglomerate said it expects sales to expand more than 6 percent this year, with profit margins in the range of 3 to 4 percent before interest and tax, despite cost burdens linked to energy, raw material and logistics price hikes.
The Russian invasion of Ukraine and all its implications pose another uncertainty, it said.
Bosch intends to invest about 3 billion euros (US$3.2 billion) over three years in developing climate-neutral technology such as electrification and hydrogen.
Stefan Hartung, chairman of the board of management of Robert Bosch GmbH, said he believes electrification is the fastest route to climate neutrality, provided it is based on green electricity.
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