Bosch Rexroth AG Has Successful 2003, Forecasts Considerable Growth for 2004
LOHR & FRANKFURT, GERMANY Bosch Rexroth AG, the parent company of Bosch Rexroth Corporation in the U.S., began the first quarter of 2004 with marked growth in sales and orders after finishing 2003 on a strong note.In spite of the poor economic situation for capital goods, 2003 was a successful year for Rexroth, and it is looking very positive for the current year, confirmed Manfred Grundke, president of Bosch Rexroth AG.In the first quarter of 2004, sales rose 5.2 percent and orders increased 16.7 percent compared to the same period a year ago. In 2003, the wholly owned subsidiary of Robert Bosch GmbH increased sales 2.1 percent to $4.4 billion, or 3.7 billion Euros. In China, with about 31 percent growth, Rexroth once again achieved a double-digit increase in direct sales.The clear gain in market share in Europe and America, coupled with rapid growth in China, substantiate our companys strategic alignment with customer benefits,Grundke said.Rexroth Reduces Total Cost of OwnershipRexroth is the only company worldwide offering all essential drive, control and motion technologies from a single source, serving the core markets of factory automation and mobile hydraulics. Because of its complete scope of products and combination of automation technologies, Rexroth is able to give customers considerable cost-reduction potential.We offer lower total cost of ownership than our competitors,Grundke emphasized.In the capital goods industry, total cost of ownership means the overall cost of products and systems -- from the initial design and purchase cost to commissioning and service.Production Expansion Announced in Growth MarketsRexroth will achieve its growth goals in the next few years predominantly through increased sales in China and North and South America. The company has announced that there will be a much greater proportion of on-site manufacturing in those growth regions.Major Investment in Research and DevelopmentIn 2003, Rexroth increased its investment in research and development to $214 million, or 180 million Euros.Our R&D goal of 5 percent of sales is distinctly above the average for our industry and shows that we are poised for further growth,explained Grundke.Investing in the future is already reaping noticeable rewards. In 2003, Rexroth increased its patent applications by 17 percent and has a full pipeline of new products. This will enable Rexroth to maintain its claim of offering best-in-class products in all technology areas. The development of a new control platform, functional modules and system solutions forms the core of work being undertaken in this field.About Bosch Rexroth CorporationBosch Rexroth Corporation (www.boschrexroth-us.com) a merger of Bosch Automation Technology and Rexroth, is a wholly owned subsidiary of Robert Bosch GmbH. In the year 2003, Bosch Rexroth AG achieved sales of $4.4 billion (3.7 billion Euros) with 25,700 employees.Under the brand name of Rexroth, the company offers all relevant drive, control and motion technologies: from mechanics, hydraulics and pneumatics to electronics and associated services. Rexroth has 500,000 customers in over 80 countries and is an extensive supplier of components and systems for industrial and factory automation and mobile applications.
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