Bosch Rexroth once again achieved strong growth in fiscal 2023. Sales increased by 7.5% over the previous year to around 7.6 billion euros. Growth was mainly driven by our acquisitions and was also positively influenced by developments in regions such as India. We are pursuing a long-term growth strategy and investing in new plants, modern production facilities and research and development in Germany, Slovenia and Mexico. At the end of 2023, we had around 33,800 employees worldwide. The 5.5% increase over the previous year was mainly due to the acquisition of the HydraForce business, which was completed in 2023.

Comparison of Bosch Rexroth's business data in 2023 and 2022

“In 2023, our global teams struck a balance between initially high capacity operations and subsequently falling order volumes. This demonstrates Bosch Rexroth’s fortitude: We have managed to keep our business running smoothly. At the same time, customer satisfaction has increased again,” said Dr. Steffen Haack, CEO of Bosch Rexroth.

Dr. Steffen Haack, CEO of Bosch Rexroth

The company strengthened its service for hydraulics and factory automation customers through innovations, acquisitions and partnerships and continued to develop its global manufacturing network. The digitalization of customer service and internal processes is advancing, Bosch Rexroth is strengthening its sustainability measures and has completed the integration of the acquired HydraForce brand.

"Even in challenging times, we can rely on our strong corporate culture and our commitment to shared success with our customers," said Dr. Steffen Haack.

Sales

Acquisitions drive growth

Sales increased by 7.5%, or around EUR 530 million, to EUR 7.6 billion. The amount affected by exchange rate fluctuations was around EUR 190 million, so that after adjusting for exchange rate effects, sales growth could reach 10.1%. Since 2023, HydraForce and ELMO Motion Control have also become part of Bosch Rexroth's business and, like the business of Kassow Robots (the majority stake acquisition was completed in 2022), now also contribute to the sales growth.

The positive growth in North and South America was mainly influenced by the acquisition of HydraForce, with sales increasing by 24%. Sales in Europe outside Germany increased by 9.3%, while sales in Germany increased by 3.4%. In the Asia/Africa/Australia region, sales fell by 4.6%. The developments in the region were very different: The decline in sales in China, one of Bosch Rexroth's largest markets along with the United States and Germany, had a clear impact on the region. Bosch Rexroth celebrated its 50th anniversary in India and in 2023 its sales increased by around 30% compared to the previous year.

New orders

Weak economy in the second half of 2023 led to a decline in orders

Orders for 2023 amounted to around 6.4 billion euros. This is around 950 million euros, or 13.1%, less than last year. Weak economic conditions and continued uncertainty in most parts of the world led to a significant decline in new orders, especially since mid-2023. Bosch Rexroth expects order intake to recover in the second half of 2024.

Outlook 2024

Continuously improving competitiveness amid challenges

Holger von Hebel, CFO of Bosch Rexroth, said:

"The economy is expected to remain weak this year and there are significant uncertainties in the economic and political environment."

In view of these circumstances, cost pressures remain very high due to increased material, energy, logistics and labor costs and a significant decline in new orders. Therefore, the company continues to take measures to improve its competitiveness, for example, further promoting process automation and continuously developing and better balancing the global manufacturing network.

"We act decisively but cautiously. As a result, we are able to gain a firm foothold in the current challenging environment, while we invest and innovate to be ready for the next economic recovery," added von Hebel.

Holger von Hebel, CFO of Bosch Rexroth

Investments and innovations

Supporting the long-term growth strategy

As part of our long-term growth strategy, we are investing around 460 million euros in research and development in 2023. This is an increase of 18.5% over the previous year. More than 6% of sales were invested in research and innovation, again above the industry average. These investments strengthen the company's leading position in hydraulics and drive growth in factory automation, one of the strategic growth areas for the Bosch Group.

In 2023, investments in new plants, buildings, machinery and tools amounted to around 390 million euros.

Examples of our innovations include: solutions for hydrogen compression and handling; the ctrlX OS operating system for the entire automation market, which has already attracted well-known partners such as Dell Technologies, congatec or Nokia; the new A10VO series 60 axial piston pumps with eOC functionality, covering the medium pressure range, allowing mobile machines to be put to use in a more diverse and flexible way; the myBODAS digital collaboration platform for efficient collaboration between users and BODAS experts, accelerating software development for off-road vehicles; and comprehensive automation solutions for the entire battery production value stream, from electrode and cell production to battery module and pack assembly, to end-of-line testing and recycling.