Bosch sees 2024 operating profit plummet by a third

German automotive supplier Robert Bosch (ROBG.UL) said on Friday that its operating profit plummeted by a third to 3.2 billion euros ($3.32 billion) in 2024, a reflection of a wider crisis in the automotive and mechanical engineering industries.

According to preliminary figures, revenue contracted slightly to 90.5 billion euros, while the company's EBIT margin from operations fell by almost two percentage points to 3.5%, significantly lower than its original target of 7%.

The world's largest automotive supplier and manufacturer of a wide range of technology products from semiconductors to household electronics underperformed in almost all business areas. Business was particularly poor in Europe, with weak demand and a reluctance to invest and buy, it said.

Bosch was able to maintain revenue in its largest division, Mobility, at the previous year's level of around 56 billion euros.

"Despite our best efforts, Bosch, too, was not completely immune to economic developments," said CEO Stefan Hartung, adding that the auto industry was suffering from increasing competition, particularly in China.

Last year, Bosch announced plans to cut up to 5,550 jobs amid weak demand for intelligent driver assistance systems and solutions for automated driving.

($1 = 0.9626 euros)