Bosch on track to meet 2026 targets but wary of Middle East risks, CEO says

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.

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.

"We've set the course to be well positioned for the next phase," Hartung said at a robotics and automation event in Berlin.

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.

But market conditions aren't getting any less demanding, Hartung said. "On the contrary: the environment remains challenging."

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.

"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)