Makati, Philippines / May 2009 ? In fiscal 2008, sales and earnings of the Bosch Group worldwide dropped due to the global economic crisis to 45.1 billion euros, down by 2.6 percent year on year. Disregarding currency effects, sales fell by 0.5 percent. Business in Asia Pacific grew by seven percent after adjusting for currency effects reaching 7.9 billion euros and sales for Southeast Asia hit 380 million euros; an overall five percent increase over 2007. Bosch further strengthened its foothold in Southeast Asia in 2008 by establishing new regional subsidiaries in Vietnam, Indonesia and Malaysia. The company also increased research and development activities in the region, as well as investment stakes, and continued promoting green technologies. Bosch in the Philippines reported a 56 percent increase in its 2008 sales, over 2007; achieving a sales turnover of 14 million euros.
Integration into local markets: a key success factor
Bosch Philippines credits its year-on-year growth in sales to a resilient Philippine economy as well as measures the company has taken in the aftermath of the credit crunch.
In the past business year, the Filipino motoring public shifted to higher quality automotive parts to prolong the interval of vehicle service maintenance, while independent workshops shifted their focus to selling high-performance parts that would not create back jobs and complaints from motorists. ?Developing the market is vital to the Bosch business. The cost-conscious motoring public is aware that while quality comes at a premium, it is still cheaper in the long run,? said Franz Roland Odenthal, Managing Director of Robert Bosch Inc.
Bosch?s automotive line comprises ten core business fields under which it has expanded its product portfolios on filtration (oil and air filters), braking systems and automotive diagnostics through recent acquisitions. The increase in Bosch?s automotive product portfolio last year also increased its coverage over the local car market, therefore enabling workshops to serve more vehicle makes and models.
Similarly, Bosch?s Power Tools business experienced brisk sales due to continued growth in local construction and development. In 2008, Bosch rotary hammers, demolition hammers and measuring tools were the key growth segments, while retaining market leadership in cutting and grinding tools. Its Power Tool accessories and after-sales service also contributed to its current industry standing and increased its presence in construction sites in the Philippines.
Broad portfolio and partnerships to generate future growth
Bosch also operates other businesses such as Drive and Control (Bosch Rexroth), Packaging Technology and Security Systems in the Philippines through authorized representatives.
The Bosch Drive and Control division under the brand Bosch Rexroth provides hydraulic technology for local cement manufacturing stalwarts Cemex and Holcim Philippines. On a much larger scale, this same technology controls the flood gates of the San Roque multi-purpose dam in Pangasinan.
Bosch Packaging Technology has made its mark in the local food and pharmaceutical industries. Universal Robina, Unilab and Monde-Nissin are some companies that use high precision packaging machines from Bosch.
Rounding-up the Bosch roster, its Security Systems division markets the latest in closed circuit television cameras, public address and conference systems. Major installations include the Ninoy Aquino International Airport Terminal 1, Ayala Center, Mirant Sual Power Plant, Bureau of Customs, Bangko Sentral ng Pilipinas, the Senate of the Philippines and the World Health Organization office.
?In 2009, Bosch Philippines will continue to power mobility through high-quality, environmentally-friendly automotive products that provide the Philippine motoring public long-term savings,? said Mr. Odenthal. These business activities take place in tandem with the company?s technical partnership with the Technical Education and Skills Development Authority (TESDA), which trains certified auto mechanics through the ?Hari ng Talyer? (King of the Workshop) program. In 2008, over 1,000 skilled technicians have graduated from the program.
Bosch also recently established a partnership with the Philippine Contractors Association ? a safety and skills development program for professional users of power tools that promotes efficiency at the worksite.
Looking ahead, recent Bosch acquisitions which include the Freud group and sia Abrasives (power tools accessories companies), as well as Robotoolz and CST/Berger (measuring tools companies) will address the increasing complexity of building requirements, and also the growing demand for high quality products.
One step ahead of the future
Bosch Philippines continues to reaffirm its commitment to social projects in education, health and humanitarian support through its ?Bosch Class of 2010? night high school program, and its support for Elsie Gaches Village and needy government hospitals.
The Bosch Class of 2010 was conceived in 2005, adding significance to Robert Bosch Inc.?s 10-year Anniversary in the Philippines. Bosch supports the five-year night high school program by providing tuition fees and basic school needs of 100 scholars. The company also supports long-term beneficiary, Dr. Jose Fabella Hospital, through the construction of two neonatal ICU wards. In 2009, Bosch provided the government hospital with much-needed medical supplies for babies born with respiratory complications. Furthermore, Bosch will continue to support the Elsie Gaches Village through infrastructure and various rehabilitation projects in the current year. Since the late 1990s, Bosch has supported the village by providing facilities for the care of over 600 orphaned and abandoned special children.
The Bosch Group expects to sustain its growth path in the Philippines. ?In light of the present economic challenges, Bosch shall continue to support its business and social commitments in the Philippines; both as a responsible corporate citizen and as an active part of society,? said Odenthal.