Germanys Bosch 2022 EBIT rises 15.6%

Germany's Bosch 2022 EBIT rises 15.6%

BERLIN (Reuters) – German automotive supplier Bosch on Friday reported a 15.6% jump in operating profit last year, boosted by strong demand for its technology from carmakers and those seeking alternative fuel sources to Russian gas.

“Despite semiconductor shortages and a weak economy, all business sectors were able to increase their sales,” Boschs finance chief Markus Forschner said.

Earnings before interest and taxes (EBIT) rose to 3.7 billion euros ($4.04 billion) in the year, from 3.2 billion in 2021, while revenue rose by 10% after adjustments for exchange-rate effects to 88.4 billion euros.

Sales at the Mobility Solution division rose faster than automotive production, the company said, increasing by 12% to 52.6 billion euros.

Pushed by Germanys attempt to wean itself off Russian gas, demand for energy efficient heat pumps rose last year with sales jumping 50%, the company said, adding that it will expand its manufacturing capacity for heat pumps in Europe.

Bosch said it aims to increase its sales and further improve its profitability in 2023. “We are on course to achieve our long-term target margin of at least 7%,” Forschner said.

($1 = 0.9169 euros)