Bosch on Track for 2026 Financial Targets Despite Middle East Supply Risks
Bosch's Financial Outlook and Strategic Response to Global Challenges
Current Performance and Supply Chain Risks
BERLIN, June 10 (Reuters) - The world's top automotive supplier, Robert Bosch GmbH, is on track to meet its financial targets this year despite new challenges emerging, including possible supply chain shocks resulting from the Middle East conflict, CEO Stefan Hartung told Reuters on Wednesday.
German Automotive Slowdown and Job Cuts
Facing a slowdown in German car production and an investment-heavy transition to electric vehicles, Bosch plans 22,000 job cuts in its core automotive business, with the measures expected to boost results this year after restructuring costs weighed in 2025.
Leadership Perspective and Future Positioning
"We've set the course to be well positioned for the next phase," Hartung said at a robotics and automation event in Berlin.
Profit Margins, Revenue Growth, and Market Comparison
The company continues to expect a profit margin this year in the range of 4 to 6%, two to three times higher than last year, and revenue growth of 2 to 5% - making it more optimistic than its competitors Schaeffler and ZF.
Challenging Market Environment
But market conditions aren't getting any less demanding, Hartung said. "On the contrary: the environment remains challenging."
Middle East Conflict and Raw Material Supply Risks
Uncertainty surrounding the war in the Middle East and its potential impact on the supply of raw materials used in semiconductors, such as helium, have added to the risks for Bosch, according to the CEO.
CEO's Confidence in Achieving Financial Goals
"But fundamentally, we are well-positioned and can achieve our goals under the current conditions," he added.
(Reporting by Rachel More, Editing by Linda Pasquini)
