Bosch Philippines achieves strong growth in 2008

MANILA, Philippines - 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. However, 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.

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.