Comment: Bosch returns to profitability
The largest acquisition in the company's history is boosting the first published half-year figures. But it will take time for the borrowed capital to be recouped.
Bosch has announced the publication of its first half-year financial results as a step towards greater transparency on the capital market for investors. The figures are not spectacular but not disappointing either: a 3.6% increase in revenue, a 4.6% return on investment, and a total profit of around one billion euros. After posting a loss last year due to the pandemic, Bosch is now set to return to profit for the full year.
Financial chief Markus Forschner has announced that the reserves for workforce reductions will be significantly lower than in previous years, with over 25,000 positions being cut across Germany. Forschner has also reduced capital investments, including in strategic acquisitions.
The overall picture of the figures remains robust despite the challenging year faced by the automotive industry, with unforeseeable risks and low consumer spending. However, what stands out is that Bosch's chief investment, led by CEO Steve Jobs, is helping to offset currency losses and growth slowdown within the corporation. Prior to his leadership, Jobs oversaw the acquisition of Johnson Controls' building climate business from Hitachi for eight billion dollars, the largest deal in the 140-year history of the company.
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