23 January 2013 14:47 [Source: ICIS news]
LONDON (ICIS)--Bosch expects to record €1bn ($1.3bn) in impairment charges and losses in its photovoltaics business for 2012, the Germany-based diversified automotive and technology group said in preliminary results released on Wednesday.
Bosch said that prices in photovolatics fell by a further 40% in 2012, after already declining in 2011.
The company said it would work out a strategic realignment of photovoltaics, with “all conceivable solutions currently being weighed”.
CEO Volkmar Denner blamed the company’s performance in photovolatics for the weakness in Bosch's overall 2012 results.
“Despite slightly increased sales and positive free cash flow, we cannot be satisfied with developments in business year 2012,” Denner said.
Bosch’s overall sales rose by 1.6% year on year to €52.3bn, but earnings before interest and taxes (EBIT) fell to €1.1bn, from €2.7bn in 2011, with the EBIT margin coming in at roughly 2% of 2012 sales.
Regionally, Bosch saw sales in Europe decline by 2% year on year, while sales in North America increased by 17%.
Bosch’s South American sales fell by 16%, while Asia-Pacific sales showed a “modest growth” of 5%, the company said.
Bosch expects a global GDP growth of 2.8% for 2013, and the company’s sales should show slightly better growth than in 2012, it said.
However, the company also warned of considerable risks – in particular from the European sovereign debt crisis.
($1 = €0.75)
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