Bosch CEO: "Economic Targets Not Reached"

Bosch boss warns of further business risks

Stuttgart. Bosch CEO Stefan Hartung has warned of further risks for the economy and the company. "We assume that the economic situation will remain difficult in the second half of the year," said Hartung on Wednesday at a digital press conference at the Stuttgart company headquarters. "We are therefore not expecting to achieve our economic targets for the current year."

Risks are increasing

Bosch had previously aimed for sales growth of 6% and an EBIT margin in the range of 4.5 to 5% for 2022. However, the company has been struggling with rising energy prices, supply chain disruptions, and the war in Ukraine for months. “The risks for the global economy have increased significantly in recent weeks,” said Hartung. "Particularly high energy prices are a major burden for energy-intensive industries, which include large parts of our business."

Negative effects on mobility

The automotive industry is also suffering from the chip crisis. "In the current year, the shortage of semiconductors will continue to have a negative impact on production and sales in the automotive industry," said Hartung. The Bosch boss also sees negative effects from the war in Ukraine. "The war is causing great human suffering and uncertainty," said Hartung. "It also has a significantly negative impact on our business, in addition to the direct impact on our business in Russia and Ukraine."

Measures against the economic crisis

Bosch is taking countermeasures to the economic crisis. “We are working on comprehensive measures to reduce our costs and increase our efficiency. We are also benefiting from our broad diversification with products and services for various industries,” said Hartung. “Due to the difficult conditions, however, we cannot fully compensate for the additional burden.” Bosch had previously invested heavily in new technologies such as chips, batteries and fuel cells. The company wants to invest almost 10 billion euros in climate-neutral technologies by 2025. However, Hartung did not comment on whether the company would stick to this investment plan in view of the uncertain economic outlook.

Call for energy price cap

Hartung also used the press conference to once again demand an energy price cap in Europe. “We as Bosch support the introduction of a gas and electricity price cap as quickly as possible. This is the only way to cushion the dramatic price increases for companies and consumers,” said the Bosch boss. In view of the possible gas shortage in the winter, Hartung appealed to reduce gas consumption in all areas. "Saving energy is the order of the day," said Hartung. "We have to prepare for difficult times."