STUTTGART (Jan 30): Robert Bosch, the world’s biggest car-parts maker, is looking at more acquisitions for units such as building-management technology and consumer appliances to reduce long-term dependence on the auto industry.

The size of possible targets can vary as the manufacturer is taking an opportunistic approach and would act if the industrial logic is compelling, the Stuttgart, Germany-based company said.

“We’re also looking into possible disinvestments as part of a frequent analysis of our portfolio,” Chief Executive Officer Volkmar Denner said at a briefing late yesterday in Stuttgart.

Bosch, which also makes packaging equipment, water heaters and power tools, forecast the global economy will grow 2.7 percent this year, about the same pace as in 2014.

Global auto production is expected to expand by 3 percent.

The closely held company, which generates more than half its revenue from vehicle components and related services, has sidestepped economic woes in Europe by expanding in Asia and North America.

According to preliminary figures, revenue rose 6.2 percent to 48.9 billion euros (US$55.4 billion) last year, the company said.

Excluding currency effects, the increase was 7.2 percent.

Earnings before interest and taxes, adjusted for consolidation rose by about 1 percentage point to 6.1 percent of sales.

Growth forecast
Bosch is targeting improved earnings and a higher return on sales in 2015, Denner said.

The company, which has previously outlined long-term plans to widen the margin to 8 percent, is scheduled to offer a detailed forecast at its annual earnings press conference in late April.

The German company acquired Phoenix-based Climatec earlier this month from Pegasus Capital Advisors for an undisclosed sum to expand its energy and building-technology division.

The US maker of air-conditioning management and security systems generated about US$190 million in sales in 2014.

Bosch agreed last year to acquire full control of its home-appliance venture from Siemens AG for 3 billion euros. The transaction, announced in September, was Bosch’s second deal in 2014 to buy out a joint venture partner, following its move for full control of a car steering-systems business from German peer ZF Friedrichshafen.

Bosch can finance these transactions “without a problem” due to a healthy balance sheet, Chief Financial Officer Stefan Asenkerschbaumer said.

Linked products
Since taking over as Bosch CEO in 2012, Denner has expanded offerings in the so-called Internet of things, or products with Web links enabling remote control and communications.

The strategy is part of a broader push to diversify Bosch’s line-up in digital and automated goods and reduce dependence on the car industry.

Bosch, which supplies the electronic steering and sensors for Google's prototype for a self-driving car, says more cooperation is needed between companies across industries to develop state-of-the-art products.

Europe “is often too slow” in exploring potentially disruptive digital technology, and the region’s venture-capital activities lag behind those in the US, Denner said.

Uber Technologies, which lets users order rides from private drivers through its mobile phone application, raised about US$1.5 billion in funding and was valued at US$40 billion in December.

“There’s a company in Hamburg called MyTaxi that does roughly the same” as Uber, Denner said. “They raised some 50 million euros.”