Tech Titan Bosch Faces Tough Times Ahead: A Year Full of Uncertainties
Following Profit Decline: Bosch's Expectations for the Current Year Unveiled - Bosch anticipates its financial performance for the current year, following a reported decline in profits.
What's the deal with Bosch this year? Well, the tech titan's looking at a bumpy ride, thanks to the turbulent U.S. trade policies. As Bosch CEO Stefan Hartung put it, "We're in the thick of it all." That "it all" being everything that's cooking in the U.S. trade discussions.
Nobody with half a brain can predict the exact financial toll Bosch will take from Trump's tariffs. To do so, you'd need a "pretty damn clear crystal ball." And let's be real, we don't got one of those!
Hartung expects some clarity only by the end of the second half of the year, once we see what deals are struck. Until then, Bosch is hanging tight, waiting for the cards to fall. The new normal, though, will certainly cost them extra.
But that's not all that's making Bosch sweat. The CEO's concerns are reflected in the company's forecast too. Despite a 4% revenue increase in the first quarter compared to the previous year, Hartung warns that the year will be a tough nut to crack. The odds aren't in their favor to hit the mark at the end.
Speaking of which, Bosch is aiming for a revenue growth of 1% to 3% this year, far below their medium-term targets. They're also hoping for an improved result. They're already setting their sights on 2026, where they hope to significantly boost profits.
To achieve their goals, Bosch is throwing itself into cost cutting and structural changes. "Unfortunately, that means job cuts, especially in Germany and Europe," Hartung admitted. Yup, the company has been shedding jobs for a while now. Back in 2024, 417,850 people were working for Bosch, but that number dropped by 2.7% or about 11,600 employees.
Last year wasn't a walk in the park for Bosch either. Profit took a nosedive. The adjusted earnings before interest and taxes (EBIT) plummeted by over a third to 3.1 billion euros. Net profit cratered by 49.5% to 1.3 billion euros. Revenue dipped by 1.4% to 90.3 billion euros. Originally, they aimed for a growth of 5-7%. Dream on!
Low EV demand, uninterested consumers, and struggling sectors like machine tools and European heating market, have all added to Bosch's misery. But hey, nobody said success came easy!
- Bosch
- Tech Titan
- Challenging Times
- Uncertain Future
- U.S. Trade Policies
- CEO
- Tariffs
- Job Cuts
- Revenue Growth
- The tech titan Bosch is facing challenging times ahead, as CEO Stefan Hartung suggests they are in the thick of it all due to U.S. trade policies.
- Hartung anticipates clarity on the financial impact of Trump's tariffs by the end of the second half of the year, but until then, Bosch is bracing for uncertainty.
- In an attempt to achieve their revenue growth targets for 2026, Bosch is implementing cost-cutting measures and structural changes, which may include job cuts, especially in Germany and Europe.
- Despite a 4% revenue increase in the first quarter of the year, Hartung warns that the current year is a tough nut to crack and the odds are not in their favor to hit the mark at the end.
